I must say that your letter is full of good news and tidings for the cane farming sector of the north and comes at a time when the cane farmers are plunged into uncertainty about their future and the survival of the sugar cane industry.

Quoting from your letter ?The establishment of the cogeneration plant will play a significant role in providing long-term stability for the sugar industry and will provide confidence to cane farmers and facilitate the provision of finance to them and improve yields and returns.? End of quote. You also went further and stated, and I again quote: ?There are specific areas where farmers would gain significantly from an injection of finance. Reasonably priced agricultural credit would encourage a major replanting program across the entire industry which together with improved fertilizer practices and new cane varieties would lead to improve field productivity.? End of quote.

I am writing this article on behalf of the St. Francis Xavier Credit Union Limited as one of the stakeholders in the sugar cane farming industry. The Credit Union remains as one of the unique financial institutions where the cane farmers continue to receive credit at the lowest interest rate possible. Since 1995 the Credit Union had been successful in launching a cane farmers? programme with its limited funds, and BSI has facilitated the Credit Union with payroll deductions on cane farmers? cane deliveries made to the factory. Over the years we have been able to attract 1200 cane farmers in the Corozal District with a capital investment of 3.0 million. Our program runs on a crop basis of not more than 2 years maturity period. We have been successful in providing much needed finance to the cane farms through a self-help participatory lending programme whereby cane farmers have agreed to save one dollar for every ton of sugar cane delivered. As recently as June 1, 2005 we managed to venture into a fertilizer and agrochemical project whereby our farmers can now sign a credit order at the Credit Union and pick up their fertilizer and herbicides at Prosser in Corozal Town at very reasonably priced agricultural credit. Our farmers cannot be more than happy with this expansion of service to them by their Credit Union. All of the above lending programmes have been successful due to sound financial management and working hand in hand with our cane farmers.

Indeed, we agree with you when you stated in your letter that cane farmers are in need of financial assistance to rehabilitate their cane fields. You also correctly stated that there is a need for appropriate financial solutions.

We at the Credit Union have been longing for long-term financial assistance in this area and we are capable of expanding, developing and monitoring our credit programme to our cane farmers since we have the infrastructure, the human resources available and the credibility of sound management principles and practices. I am of the opinion that an injection of funds in this rehabilitation process for our Credit Union cane farmers in the Corozal District should not be less than $10.0 million at, let?s say, 5% interest rate, if they are to respond to the demands of cogeneration and the strengthening of the sugar industry on a whole. We stand ready to welcome any financial assistance available in order to contribute to the well being of our cane farmers and their families.

Our Credit Union has assets of 31.5 million with over 6,000 members. I now want to compliment Mr. J.J. Montalvo for giving assurance to the cane farmers of being able to participate in the future expansion of the industry?s energy potential. I also want to thank Mr. J.J. Montalvo and his able staff for all the years that BSI has been able to facilitate our cane farmers and our Credit Union with convenient payroll deductions.

Sincerely,

(Signed) Mr. Vicente Canul

General Manager

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