The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Government was yesterday urged to adopt the "ambitious goal" of increasing the agriculture and fisheries' sectors' combined output "eight-fold" to $1.2bn over the next decade.

Its Economic Recovery Committee (ERC), in a 60-page executive summary of its recommendations that was unveiled by the Prime Minister, argued that this could be achieved by "targeted private and public investment" in these industries.

"Establish and publish key performance indicators around the output of the agriculture and fisheries sector as measured by its proportionate contribution to GDP," the Committee's report urged. "The ERC proposes a target of no less than 10 percent of annual GDP output within 10 years.

"This would increase the sector’s economic value from $150m per year to approximately $1.2bn per year, representing an eight-fold increase in the contribution to the economy. To meet this objective, the Government should work with stakeholders in the sector to establish a core basket of crops, livestock and seafood products that are best suited for Bahamian commercial cultivation and production.

"The incentives and public sector support should align primarily with the agreed basket of items. Once the core basket of items has been determined, the Government must establish, publish and monitor output appropriately."

The Committee also urged the Government to "accelerate the lease of Crown Land" to genuine farmers through the proposed national sovereign wealth fund or other partnerships. "These arrangements could include the sovereign wealth fund or other vehicles providing land as an equity stake in the venture," its report said.

"In other words, the Government should seek a stake in the proposed farming ventures in exchange for the leasing of Crown Land. Lease arrangements should also be conditional and measured against certain key performance indicators and performance standards."

The Committee also recommended that the Government "permit greater foreign investment by expanding ‘national’ treatment to firms with up to 50 percent foreign participation in the agriculture and fisheries sector".

It argued: "This would permit these firms to benefit from the available concessions. Pursuing this action will allow more fluid capital flows and the exchange of expertise and skills. Changing this policy is likely to be a stimulus for the sector."

With the COVID-19 pandemic having made food security a policy issue, the Committee said an expanded agriculture and fisheries sector would also aid economic diversification and create an increased source of foreign currency export earnings that narrows The Bahamas' trade deficit.

"The output of the agriculture and fisheries sector has historically underperformed, contributing only 1.5 percent to GDP on average since 1984," the Committee said. "For years, the country has had an ambition to increase the contribution of agriculture and fisheries. However, that ambition needs to be developed into a focused and articulated strategy with set objectives, targets and milestones.

"The ERC maintains that a cornerstone of economic sustainability, reliability and dynamism is the recognition that food security is a key component of national security. In addition to this, the ERC also believes that policymakers must take bold steps to ensure that the country is capable of producing a basket of goods which, at a minimum, allows citizens access to essential goods.

"It is believed that productivity within these sectors could be much higher if certain foundational issues are addressed."