In Kogi State, a farmland was leased to a foreign investor, Cargill USA, for the production and processing of cassava at the federal government staple crops processing zone at Alape in Kabba/Bunu.
About a total of 1, 500 hectares of farmland has been earmarked for the cassava project but only 500 hectares of cassava farm land has been cultivated, so far.
Cargill USA is not to pay compensation for the land. But under the arrangement, the government will provide inputs to the farmers who, on harvest of their crop, the investors will buy the produce from farm holders as well as the communities.
Meanwhile, the Cargil USA as part of its contribution will set up starch factory, sweetener industry and other cassava allied industries. The investor is also to provide machines, source of water and an independent power plant.
A farmer who spoke on the issue, Tunde Obafewe, said compensation was paid only on economic trees and crops.
A source within the ministry said there was no problem with the land transfer agreement as the farmers wanted development.
He said since the farmer will grow the cassava and Cargill will serve as buyers of whatever the farmer produces, there is an encouragement for encourage cultivate on a large scale.
