Loan with "zero" interest to expand SAF in coffee and cocoa: a good idea?

By: José Yturrios Padilla, Director of Agriculture and Climate Change at RECURSOS (Agraria.pe) 1. The AGROPERÚ Fund's Coffee and Cocoa Renewal and Rehabilitation Program It is a direct financing mechanism that is granted so that coffee and cocoa farmers can renew and rehabilitate their crops, financing activities such as pruning, renewal through planting or weeding, proper pest and disease management, fertilization, among others. The small producer who applies for the program's financing and implements agroforestry systems (SAF) during the renewal and rehabilitation of their coffee and cocoa plantations, can access a credit with a financing cost of 0% interest. Furthermore, the credit line is increased from S/ 20,000 to S/ 30,000, with level 1 movable guarantee. And at level 2, it is financed from S/ 30,000 to S/ 52,000, with mortgage guarantee. Table 1 summarizes the characteristics of this new version of the "0% interest credit." Table 1. Characteristics of the financing program ...