Venezuelan farmers like Roberto Latini are experiencing a resurgence in rice and corn production, thanks to loans of fertilizers and seeds from agricultural guilds. Latini, who farms over 300 hectares in Portuguesa, attributes his ability to plant this season’s crops to these essential loans.

Due to Venezuela’s severe economic challenges, traditional bank loans have become scarce, with inflation soaring over 50%. In response, at least six guilds in Portuguesa and 20 crop-buying groups nationally have stepped in to provide funding, allowing farmers to invest in necessary supplies and equipment to combat utility cuts.

This support has reversed a years-long decline in staple crop production. Output of rice and white corn rose to 1.2 million metric tons last year, a 29% increase from 2022, though still far below the 3.4 million tons produced a decade ago.

Despite these gains, the terms of these loans can be tough, often requiring repayment with the harvested crops, which some small farmers struggle to meet. Without regular financing from banks, many producers risk shutting down their operations.

Venezuelan agriculture has faced numerous obstacles over the past decade, including price and currency controls, land nationalizations, fuel shortages, and failing public utilities. President Nicolas Maduro’s 2019 currency reforms, allowing dollar transactions, have provided some relief, but challenges persist.

Gerardo Mendoza, head of consultancy Agrotributos, highlights the lack of financial protection for the agriculture sector. Local consulting firm Globalscope reports that available bank loans total around $330 million, primarily for small-scale export crops.

Farmers like Latini and others have taken innovative steps, such as installing solar panels and repairing local roads, to cope with infrastructure issues. However, as economist Hermes Perez warns, rising production costs and inflation could lead to higher consumer prices.

Reporting by Mayela Armas and Vivian Sequera; additional reporting by Nelson Bocanegra; writing by Julia Symmes Cobb and Marguerita Choy.