November 2011

Farming in the Isingiro district of Uganda isn’t always easy. Small plots of land make it hard for people to grow enough produce to attract a good price from buyers, while deforestation has meant that the fertile topsoil has been washed away, leaving land that is difficult to farm. Many farmers are barely producing enough to feed themselves and their families; there is nothing left over to sell to pay for anything else or to save for the future.

With support from the Methodist Relief and Development Fund’s partner, RUHEPAI, farmers are forming groups and take turns to work on one another’s land. This means that large jobs that used to take an individual weeks to finish are now completed by a group of people in just a couple of days. The farmers also sell their crops together, and because the quantities are larger, each group member gets a better price for their produce.

Farmers like Zamn (pictured) have received training in techniques such as intercropping, making organic pesticides and fertilizers and terracing the land to prevent soil erosion, enabling them to increase their crop yields. Topista, another farmer who has benefited from the training, says: ‘Being part of RUHEPAI has made a very special difference. Now we have surplus. We’re able to help our children to go to school and buy things for our homes.’

Small-scale projects like this are helping some of the world’s poorest people to grow more food and rise out of poverty. Unfortunately, they can only have limited effectiveness in combating hunger while poor households are so affected by dramatic swings in the market price of staple foods. This volatility is being caused by banks and pension funds betting on the value of food on the commodity markets.

In developing countries, it is common for people to spend between 50 and 90 per cent of their income on food, compared to an average of 10-15 per cent in developed countries - so a small rise in the price of a basic food like maize is enough to push a family deeper into poverty. It’s estimated that food price rises in 2008 increased the number of people living in poverty by between 100 and 200 million. Even producers in developing countries do not usually benefit from price rises, as the volatility in the markets makes it impossible for small-scale farmers to plan what to grow in advance.

Use your action card to ask the UK government to regulate the way in which banks and pension funds can bet on the costs of staple foods, to reduce the risk of significant fluctuation in prices. Write to Mark Hoban MP, Financial Secretary to the Treasury, asking him to set strict limits on the amount that bankers can bet on food prices and to ensure that all futures contracts are cleared through regulated exchanges. For more information, or to email Mark Hoban instead, visit www.mrdf.org.uk/campaigns <http://www.mrdf.org.uk/campaigns>
Mark Hoban, Financial Secretary to the Treasury, House of Commons, London, SW1A 0AA