REPUBLIC OF BOTSWANA

TEMO LETLOTLO
GUIDELINES
Version 1, 2023

Temo Letlotlo
 CONTENT PAGE
TABLE OF CONTENTS

Introduction 1
Guiding Principles 3
Programme objectives 3
Categories and characteristics of farmers 4
Characteristics of a group 5
Categories and characteristics of clusters 5
Target yields for priority crops 7
Programme Description 11
Strategic grain reserve contributory initiative 11
Programme packages 12
Guidelines 12
Provision of seasonal loans 12
Provision of Supervised Credit 20
Provision of 100% subsidy on Inputs for Micro Scale Farmers 26
Provision of Mmoko Reward package 27
Fencing 29
Tractor and Implement Scheme 32
List of Implements subsidised 36
Interest subsidy scheme for large-scale farmers 37
Crop Insurance 40
Capacitation of Extension Service 41
Learning and Knowledge Management 43

Temo Letlotlo i
FOREWORD
The agriculture sector plays an important role as a source of income,
employment, and investment opportunities particularly to the rural populace.
The sector is a source for building investment opportunities, income generation
and employment creation for Batswana and residents, with those in the rural
communities reliant upon it. Therefore, to facilitate the preceding, significant,
and sustainable improvements in farm productivity, mainly within the sub-sector
of arable farming, have to be implemented to realise long lasting benefits.
Previous arable agricultural programmes such as Arable Land Development
Programme (ALDEP) and Integrated Support Programme for Arable Agriculture
Development (ISPAAD), did not improve food security situation in this country
due to operational and structural challenges. These factors include: lack of a
comprehensive and consistent database; inadequate monitoring and evaluation;
as well as misalignment of programmes to beneficiaries. This resulted in
significant insufficiencies leading to multiple-double dipping by beneficiaries,
misaligned farm input allocations, and to some extent, unsustainable funding
structures and allocations. The ISPAAD-sponsored farmers did not respond
to the free inputs by raising their productivity and output. This resulted in the
programme benefiting tractor operators and input suppliers instead of farmers.
Based on lessons from the previous initiatives, the Government of Botswana
through the Ministry of Agriculture (MoA), has designed a new initiative called
Temo Letlotlo Programme.
Temo Letlotlo offers a more robust architecture, meticulously crafted to cater for
arable farmers’ multifaceted needs across the entire value chain. It seamlessly
integrates cutting-edge automation, mechanization, and meticulously structured
financing mechanisms, all while emphasizing the imperative of climate-smart
technologies.
The programme’s refined and meticulously crafted architecture encompasses a
rich tapestry of sustainable initiatives, with pronounced emphasis on regenerative
arable agricultural methodologies and organic farming practices. Such
endeavours not only preserve our cherished environment but also conserves
our environmental resources, heralding Botswana’s ascent as a trailblazer in
sustainable arable farming. This transformational initiative, straddling a multi-
sectorial collaboration spanning various ministries, state-owned enterprises,
and the private sector, is an embodiment of His Excellency, the President of the
Republic of Botswana’s visionary “Reset Agenda”.

Hon. Fidelis M. Molao

Minister of Agriculture

ii Temo Letlotlo
1.0 INTRODUCTION

Temo Letlotlo is a productivity-output reward based agro-ecological

Programme whose main aim is to improve food security in Botswana.
It is a transformational, multi-sectoral Programme comprised of
various ministries, State-owned Enterprises, and the private sector. The
Programme is automated for effective data collection and management to
facilitate data-driven decision making. The role of Government is limited
to planning, regulation, promotion, and coordination to create an enabling
business environment in the agricultural sector. Its implementation and
monitoring processes are based on multi-sectoral approach according to
the mandate of each stakeholder.

The Programme has two components being Household Food Security

and National Food Security. The Household Food Security component
assists Micro-Scale Farmers with hundred percent subsidy and targets
the farming population with no wage or monthly income up to P2.500.00.
The expectation is that Micro-Scale Farmers will be capacitated through
input supplies to grow enough crops to meet their household food
security needs.

The National Food Security component targets Individual Small-Scale,

Medium-Scale and Large-Scale Farmers, Groups and Clusters. For
the National Food Security component, farmers will be provided with
seasonal loans at prime rate through the National Development Bank
(NDB) to purchase seasonal inputs. Farmers acquiring seasonal loans
through the Programme will be required to purchase the weather-
based Agricultural Credit Guarantee Scheme (ACGS) to mitigate the
risks associated with crop loss. Farmers with alternative funding, have
an option to purchase the weather based ACGS. This component will
produce grain on a commercial basis marketed through the Botswana
Agricultural Marketing Board (BAMB) and other various channels to
meet national food security needs and ultimately export surplus.

Temo Letlotlo’s blueprint meticulously identifies thirteen (13) priority

crops, channelled into twenty-five (25) distinct product spaces, with a
core objective of wealth creation via value addition. Anchoring one of its

Temo Letlotlo 1
strategic pillars is the pioneering initiative of agro-ecological mapping.
This not only educates but also empowers farmers to judiciously select
crops that have optimal and high-yielding outcomes given their unique
ecological conditions; ultimately driving down production costs and
optimizing financial outcomes. The priority crops are sorghum, maize,
millet, mung bean, groundnuts, sunflower, safflower, cowpeas, sugar
beans, wheat, soya bean, fodder (lablab, sweet sorghum, and Moringa)
and rice.

Going beyond traditional paradigms, Temo Letlotlo champions the ethos

of crop diversification, buttressed by incentivizing the use of climate smart
technologies and implements as well as the strategic establishment of
local seed repositories, ensuring resilience against climate uncertainties.

The enhancers under this Programme include a fifty percent fencing,

tractor and implements subsidy for both components; improved
extension farmer ratio for provision of technical advice and guidance.
The enhancers are intended to encourage farmers to graduate from one
category to another.

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2 Temo Letlotlo
2.0 GUIDING PRINCIPLES

The Programme is guided by the following principles:

2.1 Product quality: Introduction and implementation of standards to
encourage grading and to generate incentives for
improving product quality.
2.2 Efficiency: Improving the efficiency of farm operations through
higher levels of technology adoption and training in good
agricultural practices.
2.3 Vertical contractualization: Promoting interaction among value
chain actors through clustering to help them
develop trust and mutually beneficial relationships.
2.4 Environment Conservation: Managing farm operations in a way
that protects the environment while maintaining
economic viability of the business enterprise.
Maintaining biodiversity and reducing farm activities that
increase greenhouse gases.
2.5 Inclusivity: Promoting equal access to opportunities and resources
by special populations which include: destitute persons,
persons living with disabilities, women, and remote area
communities.

3.0 PROGRAMME OBJECTIVES

i. Promote household food security by ensuring that Micro-Scale

Farmers can produce enough output to contribute
significantly to household food consumption needs.
ii. Promote commercial production of grain by improving crop
producer’s access to inputs and credit.
iii. Promote inclusivity in agricultural production by building rainfed
agricultural production systems that are youth, disability, and
gender sensitive and provide safe production environment for all.
iv. Improve the social capital base by promoting collective
bargaining of rainfed producers.

Temo Letlotlo 3
4.0 CATEGORIES AND CHARACTERISTICS OF FARMERS
The Programme has four categories of farmers, namely:
Micro
Micro Scale
Scale Farmer
Farmer
There are 2 categories of Micro Scale farmers being Level 1 (Willing and
able Destitute Persons) and Level 2 (individuals with monthly income up to
P2,500.00)
•Cultivates 1 to 4ha of land with estimated production of between 0.6tons to 6
tons
•Productivity level is above 0.6 ton/ha.
•Produce to meet the family food requirement.
Small
Small Scale
Scale Farmer
Farmer
Individuals with monthly income of more than P2500.00. There are 2
categories of Small Scale Farmers being; level 1- Small Scale Farmer (1-8 ha)
and level 2- Small Scale Farmer (8.1-16 ha).
•This category Cultivates 1 to 16ha of land with estimated production between
1.2tons to 64tons.
•Member of Grain Producers Association
•Productivity level is above 1.5 tons/ha.
•Produce for the market.
•Has at least one (1) full-time employee or is working full time on the farm.
•Undertakes production on a fully fenced field
Medium
Medium Scale
Scale Farmer
Farmer
There are 3 categories of Medium Scale farmers being level 1- Medium Scale
Farmer (16.1-50 ha), level 2- Medium Scale Farmer (50.1-100 ha) and level 3-
Medium Scale Farmer (100.1-150 ha)
•This category Cultivates 16.1 to 150ha of land with estimated production
between 28.98tons to 675tons.
•Productivity level is above 2.0 tons/ha.
•Member of Grain Producers Association
•Produce for the market.
•Has at least two (2) full-time employees or is working full time on the farm.
•Undertakes production on a fully fenced field
Large
Large Scale
Scale Farmer
Farmer
There are 2 categories of Large-Scale Farmers being level 1 ( 150.1-500 ha)
and Level 2 (above 500ha)
•This category Cultivates 150.1 to 500ha of land with estimated production
between 375.25tons to 2,500tons.
•50% Contract based production.
•Productivity level is above 2.5 tons/ha.
•Member of Grain Producers Association
•Produce for the market.
•Has at least three (3) full-time employees or is working full time on the farm.
•Undertake production on a fully fenced field.

4 Temo Letlotlo
5.0 CHARACTERISTICS OF A GROUP

The Programme recognises formation of Groups which are expected to

transition to Clusters for collective bargaining purposes. A group is two
or more farmers with common interest..

5.1 Group Characteristics

5.1.1 Has a minimum of 2 members owning land.
5.1.2 Collectively cultivate up to 499 ha of land.
5.1.3 Have working arrangement (Memorandum of Agreement / Constitution)

6.0 CATEGORIES AND CHARACTERISTICS OF CLUSTERS

A cluster is a high-performance grain production zone with interconnected

arable production activities. It operates as a cooperative or Agricultural
Management Association (AMA).

6.1 Small Scale Cluster

6.1.1 Has a minimum of 10 members.
6.1.2 Cultivates between 500 and 2,000 ha with estimated production of
above 2500tons.
6.1.3 50% Contract based production.
6.1.4 Productivity level is above 2.5 tonnes/ha.
6.1.5 Member of Grain Producers Association
6.1.6 Has at least 3 full-time employees
6.1.7 Undertake production on a fully fenced field

6.2 Medium Scale Cluster

6.2.1 Has a minimum of 10 members.
6.2.2 Cultivates between 2,000 and 6,000 ha with estimated production of
between 1,250tons to 10,000tons.
6.2.3 50% contract-based production.
6.2.4 Productivity level is above 2.5 tonnes/ha.
6.2.5 Member of Grain Producers Association
6.2.6 Has at least 4 full-time employees
6.2.7 Undertake production on a fully fenced field

Temo Letlotlo 5
6.3 Large Scale Cluster
6.3.1 Has a minimum of 10 members.
6.3.2 Cultivates between 6,000 and 12,000 ha with estimated production of
between 5000tons to 30,000tons.
6.3.3 Have annual turnover of above P50Million.
6.3.4 75% Contract based production.
6.3.5 Productivity level is above 2.5 tonnes/ha.
6.3.6 Member of Grain Producers Association
6.3.7 Has at least 5 full-time employees
6.3.8 Undertake production on a fully fenced field

Planter

Boom Sprayer

6 Temo Letlotlo
7.0 TARGET YIELDS FOR PRIORITY CROPS (2023/24 TO 2027/28
CROPPING SEASON)

The programme has thirteen (13) priority crops with annual targets which are
farmer category specific. When the farmer meets these targets he/she qualifies
for the Mmoko Reward Package.

Target yields for priority crops

Table 1: Cereals

Commodity Farmer Category Yield Target (tons/ha)

Year 1 Year 2 Year 3 Year 4 Year 5
Millet Micro Scale farmers 0.7 1 1.5 2 2.5
Small Scale Farmers 2.5 2.7 3 3.5 4
Medium Scale Farmers 2.7 3 3.5 4 4.5
Large Scale Farmers 3 3.5 4 4.5 5

Maize Micro Scale farmers 0.9 1.5 1.7 2 2.5

Small Scale Farmers 2.5 2.7 3 3.5 4
Medium Scale Farmers 2.7 3 3.5 4 4.5
Large Scale Farmers 3 3.5 4 4.5 5
Sorghum Micro Scale farmers 0.95 1.5 1.7 2 2.5
Small Scale Farmers 2.5 2.7 3 3.5 4
Medium Scale Farmers 2.7 3 3.5 4 4.5
Large Scale Farmers 3 3.5 4 4.5 5
Rice Micro Scale farmers 0.6 0.8 1.2 1.5 2
Small Scale Farmers 1.2 1.5 2 2.5 3
Medium Scale Farmer 1.8 2 2.5 3 3.5
Large Scale Farmers 2.5 2.8 3 3.5 4
Wheat Micro Scale farmers 0.6 0.8 1.2 1.5 2
Small Scale Farmers 1.2 1.5 2 2.5 3
Medium Scale Farmers 1.8 2 2.5 3 3.5
Large Scale Farmers 2.5 2.8 3 3.5 4
Large Scale Farmers 2.5 2.8 3 3.5 4

Temo Letlotlo 7
Table 2: Legumes

Commodity Farmer Category Yield Target (tons/ha)

Year 1 Year 2 Year 3 Year 4 Year 5

Mung bean Micro Scale farmers 0.8 1 1.3 1.6 2

Small Scale Farmers 1.5 2 2.3 2.6 3
Medium Scale Farmers 2 2.3 2.6 3 3.5
Large Scale Farmers 2.6 3 3.5 3.8 4
Cowpeas Micro Scale farmers 0.8 1 1.5 1.8 2.2
Small Scale Farmers 1.5 1.8 2.2 2.6 3
Medium Scale Farmers 2 2.6 3 3.3 3.6
Large Scale Farmers 2.5 3 3.3 3.6 4
Sugar beans Micro Scale farmers 0.8 1.2 1.5 1.8 2.1
Small Scale Farmers 1.5 1.8 2.1 2.5 3
Medium Scale Farmers 2 2.5 2.9 3.3 3.7
Large Scale Farmers 2.5 3.3 3.7 3.9 4.2
Soya bean Micro Scale farmers 0.8 1 1.5 2 2.5
Small Scale Farmers 1.5 2 2.5 3 3.5
Medium Scale Farmers 2 2.5 3 3.5 4
Large Scale Farmers 2.5 3 3.5 4 4.5

Drone for spraying

8 Temo Letlotlo
 Table 3: Oilseeds

Commodity Farmer Category Yield Target (tons/ha)

2 Year 1 Year 2 Year 3 Year 4 Year 5

Groundnuts Micro Scale farmers 0.8 1 1.3 1.6 2

Small Scale Farmers 1.6 2 2.5 3 3.5
Medium Scale Farmer 2 2.5 3 3.5 4
Large Scale Farmers 2.5 3 3.5 4 4.5
Sunflower Micro Scale farmers 0.8 1 1.3 1.6 2
Small Scale Farmers 1.6 1.9 2.3 2.7 3
Medium Scale Farmers 2 2.3 2.7 3 3.5
Large Scale Farmers 2.5 3 3.5 4 4.5

Safflower Micro Scale farmers 0.8 1 1.3 1.6 2

Small Scale Farmers 1.6 1.9 2.3 2.7 3
Medium Scale Farmers 2 2.3 2.7 3 3.5
Large Scale Farmers 2.5 3 3.5 4 4.5

Table 4: Fodder

Commodity Farmer Category Yield Target (tons/ha)

2023/2 4 Year 1 Year 2 Year 3 Year 4 Year 5

Fodder Micro Scale farmers 0.6 1 1.5 2 2.5

Small Scale Farmers 1.2 1.5 2 2.5 3
Medium Scale Farmers 1.8 2 2.5 3 3.5
Large Scale Farmers 2.5 2.8 3 3.5 4

Temo Letlotlo 9
Disc Harrow

Precision Planter

10 Temo Letlotlo
6.0 PROGRAMME DESCRIPTION

The programme has two components being the:

i. Household Food Security.

ii. National Food Security.

The Household Food Security component targets Micro-Scale Farmers,

while the National Food Security component targets Small-Scale,
Medium-Scale and Large-Scale Farmers. The Micro-Scale Farmers are the
farming population that have no wage or are earning a monthly income of
less than P2,500.00. The expectation is that Micro-Scale Farmers will be
capacitated through provision of inputs to enable them to grow enough
crops to meet their household food security needs and sell surplus to the
market. For the National Food Security component, Small, Medium and
Large-scale farmers will be supported to produce grain on a commercial
basis that will be marketed (sold) through various channels to meet
national food security needs (and possible export), through incentives
that reward the achievement of output and productivity targets.

10.0 STRATEGIC GRAIN RESERVE CONTRIBUTORY INITIATIVE

(Tlatsa Difalana-Tema ke Kgetse”)

All farmers participating in Temo Letlotlo Programme, Starting with Level

2 Micro Scale Farmers shall make a compulsory donation of one (1) 50kg
bag of grain for every hectare subsidized to the Strategic Grain Reserve
(SGR). This is expected to promote go Ipelega and cultivate the spirit of
self -reliance amongst farmers. Botswana Agricultural Marketing Board
is responsible for the logistics regarding the collection of the donations.
The contribution will start during the 2024/25 planting season.

Temo Letlotlo 11
11.0 PROGRAMME PACKAGES

COMPONENT 1: HOUSEHOLD FOOD SECURITY

Sub- component 1.1 100% Subsidy for Micro Scale Farmers
COMPONENT 2: NATIONAL FOOD SECURITY
Sub- component 2.1 Provision of Seasonal Loans
Sub-component 2.2 Agricultural Credit Guarantee Scheme
Sub-component 2.3 Local Production of Inputs
Sub-component 2.4 Mmoko Reward Packages

Sub-component 3.1 Extension service delivery

• Private Extension
• Community Based Agricultural Extension
• Crop Management System
Sub-Component 3.2 Learning and Knowledge management
• Farm Audits
12.0 GUIDELINES

12.1 PROVISION OF SEASONAL LOANS

This is a secured loan offered at a prime rate up to a maximum of

P8,300.00/ha to business focused grain producing farmers. The loan will
be used to provide working capital for farmers including procurement
of inputs, farm production services and purchasing of Weather based
Agricultural Credit Guarantee Scheme (ACGS).

a) Loan Limit
The maximum loan limit for each eligible farmer under the programme,
will be decided based on the farmer’s Cropping Plan and validated land
size.

b) Interest Rate
The loan will be administered at prime rate (floating prime rate).

c) Tenure
The tenure of loans under the programme will be based on the gestation
of the targeted commodity and shall not exceed 12 months.

12 Temo Letlotlo
d) Repayment
The loans granted under the programme shall be fully repaid within the
tenor of the loan. Where the loan was accessed through a Commodity
Association, the leadership of the Association shall be responsible for full
repayment of loan granted to its members.

12.1.1 Eligibility Conditions

i) Open to individuals who are citizens of Botswana aged 18 years

and above.
ii) 100% Batswana owned registered companies.
iii) A cluster registered as Agricultural Management Association or
a Cooperative
iv) Entity registered in the Temo Crop Management System.
v) If you are a director of a company or member of a registered
cluster who benefited from the programme you cannot benefit
as individual.
vi) Owner or Tenant of a farm (In case of Lease Agreement, the
lease period should not be less than 5 years)

12.1.2 Obligations/Requirements

i) Lease Agreement validated in the Temo Crop Management System

ii) Soil Test Result from an accredited Laboratory
iii) All fields may be audited.
vii) Must provide previous year’s production information vetted
by District Crop Production Officer. The farmer/cluster
should have uploaded the production information into the Temo
Crop Management System.
viii) Registered for Tax (TIN). Where farmers have not registered for
tax (TIN) they should undertake to do so in 3 months from date
of loan agreement.
ix) Farmers operating as companies should be registered with CIPA.

12.1.3 Insurance

Mandatory weather based ACGS

Temo Letlotlo 13
12.1.4 Disbursement

Once application has been approved, the National Development Bank

will disburse funds through electronic transfer.

a) Loans for Small Scale Farmer cultivating 1ha to 16 ha

Condition Description Notes

Loan Amount Loan limit: - P8,300 per Ha Capitalization of Loan

Maximum loan for Level fees (Existing loan fee
1 – P67,230 structure)
Maximum loan for Level 2
– P132,800
Collateral Personal Guarantee N/A
Certificate of Indebtedness
Contribution Waved N/A

Existing NDB Loan(s) Only customers in N/A

good standing on their
existing NDB loan will be
considered
Credit Bureau • Listings of P10 000 and N/A
Checks below without judgement
will be considered

• This is inclusive of both

the company and Directors
Turn Around Time 14 working days From receipt of
(TAT) complete application
until a YES or NO
Decision by the Bank

14 Temo Letlotlo
b) Loans for Medium Scale Farmers cultivating between 16.1ha to 100ha

Condition Description Notes

Requirements Level 1 - P415,000 Financials to be
Submit the following prepared by BICA
documents: member.
•12 months bank
statements
•Creditors/debtors aging
report
•Fixed Assets schedule
•Copy of their cash book/
cash receipt
•Proof of production

Level 2 - P830,000
•Submission of documents
as required for level 1.
2nd Year
•Annual Financial
Statements (Audited if
applicable to be prepared
BICA member).
•Current Historic Annual
Financial Statements
(Audited Financial
Statements if applicable)
and Cashflow projections,
Management accounts etc.

Loan Amount Loan limit: - P8,300 per Ha Capitalization of Loan

Maximum loan for Level 1 – fees (Existing loan fee
P415,000 structure)
Maximum loan for Level 2
– P830,000
Collateral Trader partner Cession N/A
(e.g. BAMB)
Personal Guarantee
Certificate of Indebtedness
Contribution Waved N/A

Temo Letlotlo 15
Existing Loan(s) Only customers in good N/A
including NDB standing on their existing
loans will be considered

Credit Bureau • Listings of P10 001 up to N/A

Checks P50 000 without judge-
ment will be considered

• This is inclusive of both

the company and Directors

Turn Around Time 14 working days From receipt of

(TAT) complete application
until a YES or NO
Decision by the Bank

Ripper

PTO Driven Harvester

16 Temo Letlotlo
c) Loans for Medium Scale Farmer cultivating between 100.1 ha to 150ha and
Large Scale farmers cultivating 150.1ha to 500ha)

Condition Description Notes

Requirements • Financial Statements (past year) Financials to be

prepared by BICA
member. Audited
Financials Statements
if Applicable.

Current Historic
Annual Financials
Statements (Audited
Financials Statements
if Applicable) and
Cash Flow projections,
Management accounts
etc.
Loan Amount Loan limit: - P8,300 per Ha Capitalization of Loan
Maximum loan for Level 3 fees (Existing loan fee
medium scale farmer– P1,245,000 structure)
Maximum loan for Large Scale
farmers – P4,150,000
Collateral Collateral as per NDB Credit N/A
Policy
Trader partner Cession (e.g.
BAMB)
Personal Guarantee
Certificate of Indebtedness
Contribution Waved N/A

Existing NDB • Only customers in good N/A

Loan(s) standing on their existing NDB
loan will be considered
Credit •Listings of P50 001 to P100 N/A
Bureau Checks 000 without judgement will be
considered
•This is inclusive of both the
company and Directors

Temo Letlotlo 17
Turn Around 14 working days From receipt of
Time (TAT) complete application
until a YES or NO
Decision by the Bank

d) Loans for Clusters (Micro, Medium and Large scale)

Condition Description Notes

Purpose The fund is Temo Letlotlo that The facility will cover
provides working capital for small, medium and
farmers large businesses
Definitions of
Categories by Turnover
Small – Up to P10m
Medium - Between
P10million & P50million
Large - Above
P50million
Requirements •Cluster should have legal Financials to be
capacity to borrow prepared by BICA
•Provide Constitution / member.
Partnership Agreement
governing the cluster Current Historic
•Financial Statements (Audited Annual Financials
Financials Statements if Statements (Audited
Applicable) of the past year. Financials Statements
•Cluster organized as companies if Applicable) and
should be registered with CIPA. Cash Flow projections,
Management accounts
etc.
Loan Amount Loan limit: - P8,300 per Ha Capitalization of Loan
Maximum loan for small scale fees (Existing loan fee
cluster is P16.6Million structure)
Maximum loan for medium scale
cluster is P49.8Million
Maximum loan for large scale
cluster is P99.6Million

18 Temo Letlotlo
Collateral Collateral as per NDB Credit N/A
Policy
Trader partner Cession (e.g.
BAMB)
Personal Guarantee (By all Clus-
ter members)
Certificate of Indebtedness

Contribution Waved N/A

Existing The Cluster must be in good N/A

Loan(s) includ- standing on its existing loans
ing NDB with other financiers including
NDB Loans.

Credit Bureau • Listings of P100 000 and below N/A

Checks without judgement will be con-
sidered

• This is inclusive of both the

company and Directors

Turn Around 14 working days From receipt of

Time (TAT) complete application
until a YES or NO
Decision by the Bank

Temo Letlotlo 19
12.2 PROVISION OF SUPERVISED CREDIT

12.2.1 Product Features

All unsecured loans under the programme will be offered at a prime rate
up to a maximum of P8, 300.00/ha to business focused grain producing
farmers. These loans will be for farmers who cannot obtain credit from
other sources at a reasonable rate or cannot raise a collateral and is
based on the farmers’ cash flow needs.

The loan is 85% guaranteed by Weather based ACGS. The loan will be
used for procurement of inputs, procurement of farm production services
and purchasing of crop insurance. NDB will practice ladderized lending
scheme that limits new loans borrower to a maximum of 8ha only. The
farmers qualify for 16 ha after two crop cycle.

12.2.2 Enhanced Technical Assistance

The aim of Enhanced Technical Assistance will be to provide technical

assistance and advise farmers concerning agricultural practices and
new technologies that would help improve production. The Enhanced
Technical Assistance will be a combination of technical and marketing
assistance to help farmers increase productivity and income. Clients
of the Supervised Credit will be assigned Extension Officer and Credit
Supervisor.

i) Extension Officer

The role of Agricultural Extension Officer is to:

• Assist farmers to identify and overcome problems.
• Assist farmers to make better use of resources and technology.
• Assist farmers to introduce new technologies.
• Provide information on new technologies.
• Help farmers put new information to use.

The Extension Officer will visit each farm at least four times within a
season as part of technical backstopping (train and give agronomical
support).

20 Temo Letlotlo
The four (4) visits will be completed within 30- 45 days of the planting
season.
1st Visit- During Land Preparation
2nd Visit- After planting/transplanting process
3rd Visit- During fertilizer application period
4th Visit- 20 days before harvesting.

ii) Credit Supervisor

The function of the Credit Supervisor is Portfolio Management including

validation of the borrower’s operations records to ensure that the funds
are allocated well and are used for their intended purpose. The Credit
Supervisor ensures that the cropping plan is implemented as planned.
The Extension Officer will work closely with Credit Supervisor as part of
the Loan Portfolio Management process, a technical network creates an
efficient data-collection mechanism that captures farm-level information
that not only helps provide timely and relevant advice to different
farmers’ situations but also provides the useful insight on the product’s
development.

12.2.3 Loan process

A new loan application will be processed within fourteen working days,

while loan renewals for existing clients will be processed and approved
in one day. New application starts with a product orientation to introduce
the product features to potential clients as well as present application
requirements. After screening the application and conducting a credit
and background investigation, NDB will begin to process the loan. If all
documentary requirements are sufficiently fulfilled, loan approvals will
be processed along with registration for Weather Based ACGS. Fund
disbursements will be delivered at a given schedule throughout the crop
cycle. Loan Limit

The maximum loan limit for each eligible farmer under the programme,
will be decided based on the farmer’s Cropping Plan and validated land
size.

a) Interest Rate
The loan will be administered at prime rate.

Temo Letlotlo 21
b) Tenure
The tenure of loans under the programme will be based on the
gestation of the targeted commodity and shall not exceed 12 months.

c) Repayment
The loans granted under the programme shall be fully repaid within
the tenor of the loan.
Option 1- Full payment upon harvest
Option 2- Instalment payment during loan period

d) Collateral Requirements
No Collateral required.

12.2.4 Eligibility Conditions

i) An individual who is a citizen of Botswana aged 18 years and

above.
ii) An Individual registered in the Temo Crop Management System
ii) Owner or Tenant of a farm (In case of Lease Agreement, the
lease period should not be less than 5 years)

12.2.5 Obligations/Requirements

i) Lease Agreement validated in the Temo Crop Management System

ii) Soil Test Result from an accredited Laboratory
iii) All fields may be audited.
iv) To benefit for the second season and forward, the farmer/cluster
should have uploaded previous year’s production information
into the Temo Crop Management System

22 Temo Letlotlo
12.2.6 Disbursement

Once application has been approved, the National Development Bank

will disburse funds through electronic transfer.
a) Small Scale Farmer

Condition Description Notes

Requirements •The Farmer and the Credit Capitalization of Loan fees
Supervisor make a farm plan, (Existing loan fee struc-
which includes crops to be ture)
raised, inputs needed, credit
requirements, income expected
and repayment schedule.
Loan Amount Loan limit: - P8,300 per Ha Capitalization of Loan fees
Maximum loan for Level 1 – (Existing loan fee struc-
P67,230 ture)
Maximum loan for Level 2 –
P132,800
Collateral Personal Guarantee N/A
Certificate of Indebtedness
Contribution Waved
Existing NDB • Only customers in good N/A
Loan(s) standing on their existing NDB
loan will be considered
Credit Bureau • Listings of P10 000 and below N/A
Checks without judgement will be con-
sidered
• This is inclusive of both the
company and Directors
Turn Around 14 working days From receipt of complete
Time (TAT) application until a YES or
NO Decision by the Bank

Temo Letlotlo 23
12.2.7 Value Chain implementation

The farmers who acquired the loan through supervised credit dispensation
are required to sell their produce to NDB Partner traders. The trader will
also serve as a collection channel of the bank where the farmer’s loan
payments will be automatically deducted from the sale proceeds.

12.3 PROVISION 100% SUBSIDY ON INPUTS FOR MICRO SCALE

FARMERS

The programme will give a coupon to Micro Scale farmers to enable them
to purchase Fertilizer, Seeds and tillage services for a maximum of 4ha.
The Coupon is valued at P5,500.00/ha. In the context of Temo Letlotlo
programme, Micro Scale farmers are farming population that has no
wage or are earning minimum wage.

12.3.1 Temo Letlotlo Wallet

The funds for 100% subsidy will be disbursed through a Temo Letlotlo
wallet/ voucher developed and managed by BIUST and NDB. The service
will facilitate the micro-scale segment to transact with various services
providers, in line with prescribed limits as per the farmer’s cropping plan.
The farmer will be able to pay the service provider in real time. This also
allows for real-time monitoring and evaluation of input distribution to
farmers.

12.3.2 Micro Scale Level 1:

Obligations/Requirements:
i. Identified through the Ministry of Local Government and Rural
Development Database in collaboration with MoA.
ii. Farmers are allowed to use borrowed land.
Village Leadership (Kgosi, Councillor, VDC, Village Extension Team,
Farmers committee) to facilitate borrowing of land.
iii. Not expected to contribute a bag/ha to the Strategic Grain Reserve
(Tlatsa difalana-Tema ke Kgetsi).

24 Temo Letlotlo
12.3.3 Micro Scale Level 2:
Obligations/ Requirements:
i. The resource poor individuals aged 18 years and above with monthly
income up to P2,500.00.
ii. Farmers are expected to contribute a bag/ha to the Strategic Grain
Reserve (Tlatsa difalana-Tema ke Kgetsi).
iii. To benefit, the farmer is not required to own land, they may borrow.

12.4 PROVISION OF MMOKO REWARD PACKAGE

Mmoko Reward Package is the performance-based reward given to

farmers in recognition for their productivity and quality of produce. It
is a reward given to farmers who meet the yield target and quality of
the priority crops. Grading of crops will be done by Extension Officers at
harvesting and those who meet yield target and has Grade 1 grain will be
given 100% of the reward, while grade 2 will get 75% of the value of the
reward.
The reward package is in the form of Reward Voucher items contextualised
to the specific needs of farmers. The incentive will be applicable only if the
farmer/cluster has met their yearly yield targets, which varies depending
on the crop planted and the farmer category.

The Reward Voucher items for clusters will only be issued once the
cluster signs the Service Level Agreement (SLA) with Government.
The SLA is meant to enhance farmers commitment on their obligation.
Failure to honour the SLA gives Government the right to lease the land to
interested party for the remaining duration of the SLA.

Table 2 and Table 3 presents the proposed Mmoko reward packages for
individual farmers and clusters, respectively.

NB: Micro Scale Level 1 and Level 2 are not eligible for rewards, as these are
producing under 100 percent grant.

Temo Letlotlo 25
 12.4.1 Eligibility Conditions

i. All farmer except Micro Scale

ii. 100% Batswana owned Registered Company in the business of
commercial grain production.
iii. Entity should have registered in the Temo Crop Management System
iv. Grade 1 grain meeting the annual yield target (Quality will be determined
through grading by Extension Officer and validated by Agronomist).

12.4.2 Obligations/Requirements

i. Upload production information into the system

ii. Fields inside Production clusters do not qualify for reward package as
individuals, they are treated as an entity.
iii. All fields financed through the programme will be subjected to a
random audit.

Table 5: Mmoko Reward Packages for Individual Farmers

FARMER CULTIVATED PROGRAMME QUALITY OF REWARD
CATEGORY AREA (HA) YEAR PRODUCE VALUE
(GRADE) (PULA)

Small Scale - Level 1-8 hectares Year 1 Grade 1 10,000

Grade 2 7,500
Year 2 Grade 1 15,000
Grade 2 11,250
Year 3 Grade 1 20,000
Grade 2 15,000
Year 4 Grade 1 25,000
Grade 2 18,750
Year 5 Grade 1 30,000
Grade 2 22,500
Small Scale - Level 2 8.1-16 hectares Year 1 Grade 1 30,000
Grade 2 22,500
Year 2 Grade 1 35,000
Grade 2 26,250
Year 3 Grade 1 40,000
Grade 2 30,000
Year 4 Grade 1 45,000
Grade 2 33,750
Year 5 Grade 1 50,000
Grade 2 37,500

26 Temo Letlotlo
FARMER CULTIVATED PROGRAMME QUALITY OF REWARD
CATEGORY AREA (HA) YEAR PRODUCE VALUE
(GRADE) (PULA)
Medium Scale - Level 1 16.1-50 hectare Year 1 Grade 1 60,000
Grade 2 45,000
Year 2 Grade 1 67,500
Grade 2 50,625
Year 3 Grade 1 75,000
Grade 2 56,250
Year 4 Grade 1 82,500
Grade 2 61,875
Year 5 Grade 1 90,000
Grade 2 67,500
Medium Scale - Level 2 50.1-100 hectares Year 1 Grade 1 90,000
Grade 2 67,500
Year 2 Grade 1 97,500
Grade 2 73,125
Year 3 Grade 1 105,000
Grade 2 78,750
Year 4 Grade 1 112,500
Grade 2 84,375
Year 5 Grade 1 120,000
Grade 2 90,000
Medium Scale -Level 3 100.1 - 150 hectares Year 1 Grade 1 120,000
Grade 2 90,000
Year 2 Grade 1 127,500
Grade 2 95,250
Year 3 Grade 1 135,000
Grade 2 101,250
Year 4 Grade 1 142,500
Grade 2 106,875
Year 5 Grade 1 150,000
Grade 2 112,500
For an area planted between 150.1 and 500ha the maximum reward
attainable is P190,000, for a period of 5 years.
FARMER CULTIVATED PROGRAMME QUALITY OF REWARD
CATEGORY AREA (HA) YEAR PRODUCE VALUE
(GRADE) (PULA)
Large Scale - Level 1150.1 - 250 Ha Year 1 Grade 1 160,000
Grade 2 120,000
Year 2 Grade 1 167,500
Grade 2 125,625
Year 3 Grade 1 175,000
Grade 2 131,250
Year 4 Grade 1 182,500
Grade 2 136,875
Year 5 Grade 1 190,000
Grade 2 142,500

Temo Letlotlo 27
FARMER CULTIVATED PROGRAMME QUALITY OF REWARD
CATEGORY AREA (HA) YEAR PRODUCE VALUE

(GRADE) (PULA)
Large Scale - Level 2 250.1-350 hectares Year 1 Grade 1 190,000
Grade 2 142,500
Year 2 Grade 1 195,000
Grade 2 146,250
Year 3 Grade 1 200,000
Grade 2 150,000
Year 4 Grade 1 205,000
Grade 2 153,750
Year 5 Grade 1 210,000
Grade 2 157,500
Large Scale - Level 3 350.1-500 hectares Year 1 Grade 1 210,000
Grade 2 157,500
Year 2 Grade 1 217,500
Grade 2 163,125
Year 3 Grade 1 225,000
Grade 2 168,750
Year 4 Grade 1 232,500
Grade 2 174,375
Year 5 Grade 1 240,000
Grade 2 180,000
For an area planted between 500 and 2,000ha the maximum reward attainable is
P3,750,000; for a period of five years.
FARMER CULTIVATED PROGRAMME QUALITY OF REWARD
CATEGORY AREA (HA) YEAR PRODUCE VALUE

(GRADE) (PULA)
Small Scale 501-1,000 Ha Year 1 Grade 1 350,000
Cluster- Level 1 Grade 2 262,400
Year 2 Grade 1 700,000
Grade 2 524,800
Year 3 Grade 1 1,050,000
Grade 2 787,200
Year 4 Grade 1 1,400,000
Grade 2 1,049,600
Year 5 Grade 1 1,750,000
Grade 2 1,312,000
Small Scale 1,001-1,500 Ha Year 1 Grade 1 550,000
Cluster- Level 2 Grade 2 412,500
Year 2 Grade 1 1,100,000
Grade 2 825,000
Year 3 Grade 1 1,650,000
Grade 2 1,237,500
Year 4 Grade 1 2,200,000
Grade 2 1,650,000
Year 5 Grade 1 2,750,000
Grade 2 2,062,500

28 Temo Letlotlo

Small Scale 1,501-2,000 Ha Year 1 Grade 1 750,000
Cluster- Level 3 Grade 2 562,500
Year 2 Grade 1 1,500,000
Grade 2 1,125,000
Year 3 Grade 1 2,250,000
Grade 2 1,687,000
Year 4 Grade 1 3,000,000
Grade 2 2,250,000
Year 5 Grade 1 3,750,000
Grade 2 2,812,500
FARMER CULTIVATED PROGRAMME QUALITY OF REWARD
CATEGORY AREA (HA) YEAR PRODUCE VALUE
(GRADE) (PULA)
Medium Scale 2,001-3,000 Ha Year 1 Grade 1 800,000
Cluster-Level 1 Grade 2 600,000
Year 2 Grade 1 1,600,000
Grade 2 1,200,000
Year 3 Grade 1 2,400,000
Grade 2 1,800,000
Year 4 Grade 1 3,200,000
Grade 2 2,400,000
Year 5 Grade 1 4,000,000
Grade 2 3,000,000
Medium Scale 3,001-4,000 Ha Year 1 Grade 1 1,000,000
Cluster-Level 2 Grade 2 750,000
Year 2 Grade 1 2,000,000
Grade 2 1,500,000
Year 3 Grade 1 3,000,000
Grade 2 2,250,000
Year 4 Grade 1 4,000,000
Grade 2 3,000,000
Year 5 Grade 1 5,000,000
Grade 2 3,750,000
Medium Scale 4,001-5,000 Ha Year 1 Grade 1 1,200,000
Cluster- Level 3 Grade 2 900,000
Year 2 Grade 1 2,400,000
Grade 2 1,800,000
Year 3 Grade 1 3,600,000
Grade 2 2,700,000
Year 4 Grade 1 4,800,000
Grade 2 3,600,000
Year 5 Grade 1 6,000,000
Grade 2 4,500,000
Medium Scale 5,001-6,000 Ha Year 1 Grade 1 1,400,000
Cluster- Level 4 Grade 2 1,050,000
Year 2 Grade 1 2,800,000
Grade 2 2,100,000
Year 3 Grade 1 4,200,000
Grade 2 3,150,000
Year 4 Grade 1 5,600,000
Grade 2 4,200,000
Year 5 Grade 1 7,000,000
Grade 2 5,250,000

Temo Letlotlo 29

For an area planted between 6,000 and 12,000ha the maximum reward
attainable is P10,250,000; for a period of five years.

FARMER CULTIVATED PROGRAMME QUALITY OF REWARD

CATEGORY AREA (HA) YEAR PRODUCE VALUE

(GRADE) (PULA)

Large Scale 6,001-7,500 Ha Year 1 Grade 1 1,450,000
Cluster- Level 1 Grade 2 1,087,500
Year 2 Grade 1 2,900,000
Grade 2 2,175,000
Year 3 Grade 1 4,350,000
Grade 2 3,262,500
Year 4 Grade 1 5,800,000
Grade 2 4,350,000
Year 5 Grade 1 7,250,000
Grade 2 5,437,500
Large Scale 7,501-9,000 Ha Year 1 Grade 1 1,650,000
Cluster- Level 2 Grade 2 1,237,500
Year 2 Grade 1 3,300,000
Grade 2 2,475,000
Year 3 Grade 1 4,950,000
Grade 2 3,712,500
Year 4 Grade 1 6,600,000
Grade 2 4,950,000
Year 5 Grade 1 8,250,000
Grade 2 6,187,500
Large Scale 9,001-10,500 Ha Year 1 Grade 1 1,850,000
Cluster- Level 3 Grade 2 1,387,500
Year 2 Grade 1 3,700,000
Grade 2 2,775,000
Year 3 Grade 1 5,550,000
Grade 2 4,162,500
Year 4 Grade 1 7,400,000
Grade 2 5,500,000
Year 5 Grade 1 9,250,000
Grade 2 6,937,500
Large Scale 10,501-12,000 Ha Year 1 Grade 1 2,050,000
Cluster- Level 4 Grade 2 1,537,500
Year 2 Grade 1 4,100,000
Grade 2 3,075,000
Year 3 Grade 1 6,150,000
Grade 2 4,612,500
Year 4 Grade 1 8,200,000
Grade 2 6,150,000
Year 5 Grade 1 10,250,000
Grade 2 7,687,500

30 Temo Letlotlo
12.5 FENCING

The introduction of compulsory insurance in the programme dictates

that all fields should be protected to guard against moral hazard. Temo
Letlotlo has a dispensation to enable farmers to fence their fields and
protect their crops from animal damage.

a) Individual Fencing

• An individual shall be subsidized up to a maximum of 16ha.

• A beneficiary is entitled to 50% subsidy on the cost of fencing
(material and labour) up to a maximum of P150, 000.00 and the
50% Government contribution shall not exceed P75, 000.00.
• Applicants should have access to land (proof of ownership or
lease). In case of lease, the lease period should not be less than
10 years.
• The farmer is required to apply for fencing through the Crop
Management System.
• Farms designated as Integrated can be subsidized provided
50% of the farm is used for grain production.
• Farmers are expected to produce within 12 months of acquisition
of the fence.

NB: Farmers who cannot raise the 50% have an option of contributing
by erecting traditional poles and clearing the perimeter fence area in
lieu of the 50%.

b) Group Fencing

• A group of farmers who collectively own up to a maximum of

499 Ha will be assisted with 50% subsidy on the cost of fencing
(material and labour) up to a maximum of P4,678,000.00 to con
struct enclosure fence and the 50% Government contribution
shall not exceed P2,339,063.00.
• A group should have a minimum membership of two (2) who
have arable land in proximity and shall have a Memorandum of
understanding or working constitution.
• The group fence extends to use of electric fence for farmers
in areas prone to Elephants (This will be done in partnership

Temo Letlotlo 31
with the Ministry of Environment and Tourism’s Human Wildlife Conflict
Fencing Initiative).

c) Cluster Fencing

A group of at least 10 farmers with interconnected arable production

activities operating as an Agricultural Management Association or
Agricultural Cooperative can also apply for the fence.
• Clusters size range from 500ha up to 12,000ha.
• Cluster fence extends to use of electric fence for farmers in
areas prone to Elephants (This will be done in partnership with
Ministry of Environment and Tourism’s Human Wildlife Conflict
Fencing Initiative)
• Feasibility studies should be undertaken to confirm suitability of
the proposed area and the alignment of the perimeter fence.
• To qualify for the 100% subsidy on fencing, 50% of the clustered
area should be Debushed.
• Care and maintenance of the fence is the responsibility of the
cluster.
• A Cluster is entitled to 100% subsidy on the cost of fencing
(material and labour) up to a maximum of P112,000,000.00.
• Small Scale Cluster (500ha-2,000ha) will be assisted with 100%
subsidy on the cost of fencing (material and labour) up to a
maximum of P1,700,000.00 to construct enclosure fence.
• Medium Scale Cluster (2,001ha-6,000ha) will be assisted with
100% subsidy on the cost of fencing (material and labor) up to a
maximum of P2,950,000.00 to construct enclosure fence.
• Large Scale Cluster (6,0001ha-12,000ha) will be assisted with
100% subsidy on the cost of fencing (material and labour) up to
a maximum of P4,200,000.00 to construct enclosure fence.

32 Temo Letlotlo
Table 6: Specifications for the fencing material

PRODUCT SPECIFICATION
Veldspan Roll (Goat Proof)
1.2*10STR*119*15 by 100m
Corner Poles Creosote treated gum poles 2.4m long
minimum tips of 100-125mm.
or
Concrete poles of the same dimensions.
or
Processed Traditional poles (Excluding
protected tree species).
Standards Creosote treated gum poles 2.1m long
minimum tips of 75-100mm.
or
Concrete poles of the same dimensions.
or
Processed Traditional poles (Excluding
protected tree species).
Droppers Creosote treated gum poles 1.8m long
minimum tips 50-60mm.
or
Concrete poles of the same dimensions
or
Processed Traditional poles (Excluding
protected tree species)
Galvanized Anchor wire Means a 8 gauge wire 4.0mm*500m (50kg)
Galvanized binding wire Means a 2.0mm binding wire (50kg)
Galvanized High strain wire Means 2.24mm*1650m high strain wire (50kg)
Galvanized Double Gate Means a 1.8m by 3.6m gate
Galvanized single Barbed Means a 35kg SGL 2.5mm* 515m barbed wire
wire

NB:
i. All fencing Materials should meet ISO accredited Standards or
SABS and BOBS Standards (BOBS code: BOBS173:20060). This is not
applicable when using traditional poles.
ii. The Fence should comply with SANS 675:2021 Zinc coated fencing
wire specification (Mass of Zinc coating per unit area).

Temo Letlotlo 33
12.6 TRACTOR AND IMPLEMENT SCHEME

The scheme is aimed at helping farmers access financing for the

acquisition of a tractor and implements. The country currently has 4,500
tractors of various conditions and horse powers.
More than half of these tractors are poorly maintained and serviced
and experience frequent problems with hydraulics, power loss, engine
oil leakage, front wheel bearings and the electric system (Patrick,
Tapela, & Baryeh, 2002). Under ideal environment, a tractor is expected
to plough-plant (ploughing, harrowing, Planting) 3ha per day. As a
result of inefficiencies which include the condition of our tractors, poor
management of operations, our current tractor fleet plough-plant an
average of 1.5ha per day. This means an average tractor plough-plant
67.5ha per 45-day ploughing-planting window. This means our current
population of tractors is capable of plough-planting 303,750ha per
cropping season, under ideal environment.

The package also finances procurement of minimum tillage equipment

which is anticipated to promote use of minimum tillage and move away
from conventional tillage which is not climate smart friendly. The subsidy
covers minimum tillage (for ripping, harrowing and weeding), Planting,
weed control, pest control, harvesting and processing equipment. It also
caters for procurement of a tractor trailer for ease of carrying equipment.

The aim is to procure an initial 200 tractors during the 2023/24 cropping
season at a total cost of P150,000,000.00. The target group is individual
farmers, farmer groups, and clusters/companies in the business of service
centres. The programme will not subsidize procurement of used tractors.

During the 2024/25 and 2025/26 cropping season 400 tractors will be
procured yearly. During the 2023/24 cropping season tractors will be
bought from open market, while in subsequent years the programme
will localize tractor assembly in Botswana which has evidence of farmer
friendly after sale support.

34 Temo Letlotlo
a) Individual tractor and Implement ownership.

• A farmer is entitled to pay 50% of the value of the tractor/

tractor combo/implements up to a maximum of P500,000.00.
The 50% Government contribution should not exceed P250,
000.00 for an individual farmer.
• Incase a farmer want to purchase a tractor worth more than
P500,000.00 he/she is allowed to make a top up.
• A farmer cannot acquire a tractor without implements and
those with existing tractors are allowed to procure implements
provided there is an assessment done on the condition of the
implements conducted by a qualified technician/Mechanical
Engineer
• A farmer with tractor implements, qualifies to procure a tractor
provided there is an assessment done on the condition of
the tractor conducted by a qualified technician/Mechanical
Engineer. The Scheme will be administered by
National Development Bank.
NB: A farmer can only benefit once in this tractor subsidy package and
tractor or implements cannot be sold for 5 years.

i) Eligibility
• An individual who is a citizen of Botswana aged 18 years and
above.
• An Individual registered in the Temo Crop Management System
as a farmer.
• Owner or a tenant of a farm (in case of lease agreement, the
lease period should be at least 10 years and validated through
Crop Management System).
• The farm owned or leased should be at least 8.1ha for you to
qualify for the scheme.

ii) Obligations
• The farmer is required to apply for Tractor and Implement
Scheme through the Crop Management System.
• The farmer is required to fully pay 50% contribution or greater
and submit proof of payment upon approval of his/her application.

Temo Letlotlo 35
b) Group Tractor and Implement Ownership

Farmers are allowed to group themselves to benefit from this scheme

under the same conditions as outlined for individual farmer, but they
should have a legally binding Memorandum of Agreement. The group
have an option of Co-owning tractor or implements or a combo (both
tractor and implements).

c) Service Centre Model Ownership

A 100% citizen owned company providing grain production services to

clusters under legally binding contracts can apply for a loan at prime rate
at National Development Bank to procure machineries and equipment
required to offer services to farmers.

NB: All subsidized tractors should be assembled in Botswana with

demonstratable evidence of farmer friendly after sale support.

Fertilizer Spreader

36 Temo Letlotlo
Table 5: Tractor and Implement Guide and Prize Capping

TRACTOR IMPLEMENT Price Cap Price Cap Total Price

Engine Working (Tractor) (Implements) (Implement +
Power Power Tractor)
Rating Rating (hp)
(horse
power)
10 4.6 P25,000.00 P5,000.00 P30,000.00
15 6.9 P30,000.00 P7,500.00 P37,500.00
20 9.2 P40,000.00 P10,000.00 P25,000.00
25 9.5 P35,000.00 P15,000.00 P50,000.00
35 13.2 P120,000.00 P40,000.00 P160,000.00
45 17.0 P150,000.00 P50,000.00 P200,000.00
50 18.9 P190,000.00 P60,000.00 P250,000.00
55 20.8 P210,000.00 P65,000.00 P275,000.00
60 22.7 P225,000.00 P75,000.00 P300,000.00
65 24.6 P270,000.00 P80,000.00 P350,000.00
70 26.5 P290,000.00 P85,000.00 P375,000.00
75 28.4 P305,000.00 P95,000.00 P400,000.00
80 30.3 P325,000.00 P100,000.00 P425,000.00
85 32.2 P345,000.00 P105,000.00 P450,000.00
90 34.1 P360,000.00 P115,000.00 P475,000.00
95 35.9 P360,000.00 P150,000.00 P500,000.00

Temo Letlotlo 37
d) LIST OF IMPLEMENTS SUBSIDISED

Tillage stage
Ripper- Designed to break up hard, compact soil into loose, broken-up
dirt that can then be used for planting.
Plough- Used for loosening or turning the soil before sowing seed or
planting.
Harrow - Used to pulverize the soil, break up crop residues, uproot
weeds, and cover seed.

Planting Stage
Precision Planter- Used to plant crops and gives accurate control of plant
population, specific spacing between and along the rows.

Weed/Pest control stage

Tractor Mount Boom Sprayer- Used for applying herbicides in broadscale
farming.

Fertilization
Fertilizer Spreader- Used to evenly distribute fertilizer in the field.

Harvesting stage
PTO Driven Harvester - A type of agricultural machinery that is designed
to do all the harvesting operations including reaping, threshing, gathering,
and winnowing.

Processing stage
PTO Driven Thresher- Used for separating wheat, soybeans, and other
small grain and seed crops from their chaff and straw.
Bailer- Used for processing straw and hay into bales.

38 Temo Letlotlo
12.7 INTEREST SUBSIDY FACILITY FOR LARGE SCALE FARMERS
(500 HA AND ABOVE)

The Temo Letlotlo Interest Subsidy Facility will support the wider
program by extending the range of farmer categories that may benefit
from the program. Under the Facility, farmers that are excluded under
Temo Letlotlo such as those cultivating more than 500 ha and non-citizen
commercial farmers will be eligible for subsidized NDB loans under the
Facility.

12.7.1 The Facility

The loans under the Temo Letlotlo Interest Subsidy Facility shall be
granted for a period of up to 12 (twelve) months for arable farming at
an interest rate to be determined by the Bank from time to time and
communicated to the Government of Botswana in writing. The interest
margin is currently set as 8% (eight percent) and is subject to review
from time to time.

12.7.2 Eligibility

• Must be a farmer registered in the Temo Crop Management

System
• Normal NDB Credit Requirements Apply
• Covers farmers producing one or more of the grain crops
identified under Temo Letlotlo.
• A customer may only benefit from both a Temo Letlotlo Loan
and Interest Subsidy Facility at the same time for different
ploughing fields
• May be a citizen, non-citizen, or company
• Citizens and citizen companies cultivating above 500 ha
• Non-citizens and non-citizen companies cultivating more than
500 ha
• Pricing at Prime +8
• Customer Charged Prime Rate

12.7.3 Requirements

The Facility will work as follows:

Temo Letlotlo 39
• Applicants must be 18 (eighteen) years and above with Omang
or residence and work permit.
• Applicants must produce proof of access to land (dully allocated
or leased).
• Applicants must own or have access to farm implements and
machinery (tractor, planter, cultivator, etc) in good working
condition.
• Applicants will be required to keep farming records accessible
to both Agricultural Extension Staff and NDB.
• Applicants should have the Agricultural Credit Guarantee
Scheme (ACGS) for the seasonal loans in question.
• The repayment period is up to 12 (twelve) months and the farmer
has the option to repay using other sources of income. No
penalty will be charged on early repayment.
• There is an option to apply for another loan within the same
season, but it will be due and payable within the same season.

12.7.4 Scope of the facility

The Facility will cover the following items: -

• Seeds/Seedlings
• Fertilizers
• Fuel
• Pesticides
• Repairs and maintenance of farm machinery, irrigation
equipment and implements
• Labour costs for planting, weeding, bird scaring, harvesting,
threshing, spraying, pruning (fruit production) and packaging
• Transportation costs to the market

12.7.5 Documentation required (include but not limited to the following)

• Farmers will complete application forms available through NDB.

• Certified true copy of Identity Documents.
• Proof of accessibility to land (e.g., Land Board field certificate,
Lease Agreement, or Letter of approval to use land from the
Landowner).
• Quotations for items required.
• A crop production schedule showing past hectarage planted

40 Temo Letlotlo
 and yield, types and schedule of crops to be planted, and
expected total hectarage to be planted
• Current pay slip where farmer wants to pay through monthly
deductions from salary (list of required supporting documents is
enclosed on application forms and will be as per advice from the
Bank officials, during submission and assessment of loan
proposal)

12.7.6 Farmer’s Contract

The farmer will be required to sign a contract with NDB, which includes
the following:
• Offer letter
• Standard terms and loan conditions
• Deed of Cession over farm produce
• Certificate of Indebtedness

The Spouse will be expected to sign the letter of consent to the application
for the advance.

12.7.7 Disbursement

Once the application has been approved and loan contract signed, the
Bank will disburse funds to the client through one of the following modes:
• Electronic Funds transfer into the farmer’s account.
• Or disburse directly to the Suppliers if need be.

As a matter of principle, all the loans should conform to the Bank’s normal
lending requirements.

12.7.8 Obligations to Government of Botswana

a) Undertakes to make payment annually in April or within 30 (thirty)

days of receipt of an invoice from the Bank indicating an amount paid
above prime rate from time to time subject to clause 2.2 above.
b) The deadline/latest payment date is the 30th September of every
year. Penalty interest is charged at 5% (five percent) per annum on late
payment.

Temo Letlotlo 41
12.7.9 Approval & Disbursement

The Bank shall decide whether to approve or reject the loan application
and what security and other loan conditions shall apply to the granting
of the loan, as usual and subject the approved loans to the reduction in
interest rates.

12.7.10 Credit Management

The Bank shall be responsible for the credit management of the Facility.

12.8 CROP INSURANCE

Farmers and citizen registered companies taking seasonal loans through

Temo Letlotlo will be required to purchase the weather based Agricultural
Credit Guarantee Scheme (ACGS –referred to as the Scheme). The
purpose of the weather based ACGS is to assist rain-fed farmers to
repay part of their loans with National Development Bank (NDB) or any
other financial institution approved by Government, in case of crop loss
due to drought (total rainfall below a threshold value, consecutive dry
days or spells), high temperatures, floods (excess rainfall), frost (low
temperatures), hailstorm and crop destruction due to animals and wildlife.
Specific items and activities covered by the scheme.

The Scheme shall cover three main items or operations:

i) Seasonal inputs – fertilizers, seeds, crop production fuel, insecticides,
pesticides, and other agro-chemicals used to protect crops, workers’
wages and salaries, packaging materials, crop transport costs and other
similar working capital requirements to produce the crops.
ii) Farm or field development – destumping, de-bushing or land clearing,
labour for arable rainfed crop operations, contract ploughing and planting,
fencing of farms or fields, draining expenses, land ripping and related
operations.
iii) Farm machinery and equipment – tractors, planters, cultivators,
harrows, ploughs, crop spraying equipment, and borehole equipment.

42 Temo Letlotlo
12.9 CAPACITATION OF EXTENSION SERVICE

The Ministry currently has 268 Extension officers across the country
with each Extension Officer overseeing an average of 438 Farmers. This
extension farmer ratio is too high and cannot facilitate adequate contact
between the farmer and the Extension Officer. The role of Agricultural
Extension Officer is to:
• Assist farmers to identify and overcome problems.
• Assist farmers to make better use of resources and technology.
• Assist farmers to introduce new technologies.
• Provide information on new technologies.
• Help farmers put new information to use.

According to the programme, the Extension Officers will undertake at

least four (4) visits within 30- 45 days of the planting season as follows.
i) 1st Visit- During Land Preparation.
ii) 2nd Visit- After planting/transplanting process.
iii) 3rd Visit- During fertilizer application period.
iv) 4th Visit- 20 days before harvesting.

12.9.1 REDUCING WORKLOAD OF EXTENSION OFFICERS

The Extension farmer ration will be reduced to 120 farmers, this means
601 Extension Officers will be recruited to complement the existing 268
for facilitating 105,000 farmers.

The ratio of 1 is to 120 is not adequate to facilitate the envisaged level of

contact between the farmer and the extension officer, especially when
considering the terrain and distance between farms. The individual farmer
extension method will be complimented by mass and group extension
methods to further increase contact. Mass Extension includes village
meetings and Extension campaigns while Group Extension includes
Group meetings, Demonstrations, Fields days, Farm Walks and Farm
Field Schools.

The existing ministry Call Centre (17755) will be revamped to facilitate its
reach to the farming community and be used as the first level support to

Temo Letlotlo 43
farmers.

12.9.2 ENGAGEMENT OF PRIVATE EXTENSION SERVICE

Promotion of private sector will allow for gradual disengagement of

public services from direct extension service delivery. As part of creating
opportunity to the private sector, the Ministry will no longer do soil testing
and analysis for farmers. Plans are underway to appoint Batswana owned
companies to undertake extension service and compliment the public
extension.

12.9.3 COMMUNITY BASED AGRICULTURAL EXTENSION

The farmers are organised under an apex autonomous and voluntary

organisation which acts collectively in the interests of the economic
welfare of the grain producers in Botswana. It is a mouthpiece of grain
producers such that they can address commodity issues with Government
and other role-players in the industry.

a) Registration of the Association

The association should be registered as a Society and fully compliant

with requirements of the Registrar of Societies or Board of Trustees.

b) Role of the Ministry in the Extension Model

The ministry will build capacity of the Grain Producer Associations to

undertake the new function (Establishment of Agronomic Board) and
thereafter the associations should be able to sustain themselves.

c) Role of Agronomic Board in Temo Letlotlo

The associations will be responsible for validating information submitted

by their members including tillage and other production information.
The association will also be required to provide collateral for their
membership and manage loans acquired from the bank. The ministry will
build capacity of these associations to undertake the new functions and
thereafter the associations should be able to sustain themselves through
annual member contribution. Other revenue generating activities like
exhibitions and agricultural shows will be hived off to the associations

44 Temo Letlotlo
such that they can increase their revenue streams.

1.9.4 EXTENSION TRANSPORT INITIATIVE

To facilitate access to farmers by Extension Officers, members of the

community will be engaged to transport Extension Officer at a minimum
daily flat rate of P300.00 and a Maximum of P700.00. The rate is district
specific. This transport initiative is expected to increase revenue streams
for the rural population and improving technical backstopping by
Extension Officers.

The following principle will apply.

• Transporters are hired on rotational basis unless there is only
one transporter in an Extension Area.
• Transporter should be a resident of the extension area and
should not be a Public Servant.

13.0 LEARNING AND KNOWLEDGE MANAGEMENT

The programme will attract different stakeholders from different levels,

to exchange lessons learnt and mutual learning. It will generate periodic
knowledge management products for stakeholder engagement, publicity,
advocacy and performance management.

13.1 Farm Audits

The Crop Management System will randomly select 10% of the district
farming population for audit. The audit will be done at Extension area
level, Sub District level and at District Level. The findings of the Audit will
be captured in the journal linked to the profile of the farm audited.

Temo Letlotlo 46
PARTNERS
MINISTRY OF FINANCE
-Administration of seasonal loans
- Management of ACGS
MINISTRY OF ENTREPRENEURSHIP
-Development of value chains
-Establishment of Clusters
-Management of Supervised Credit
MINISTRY OF TRANSPORT AND PUBLIC WORKS
-Establishment of engineered gravel roads
MINISTRY OF LANDS AND WATER AFFAIRS
-Cadastral surveying of arable land.
-Updating of land information system
-Validation of land ownership
MINISTRY OF ENVIRONMENT AND TOURISM
-Expansion of meteorological stations network
-Construction of electric fence for groups and clusters in elephant prone areas
MINISTRY OF LOCAL GOVERNMENT AND RURAL DEVELOPMENT
-Provision of database for destitutes persons eligible for benefiting under the micro scale level
1 farmer category
-Facilitation of borrowing of agricultural land to destitutes through village leadership
-Provision of Extension support to mico scale level 1 beneficiaries
MINISTRY OF LABOUR AND HOME AFFAIRS
-Clearance of Omang backlog
-Provision of national identification and immigration data for validation of citizen and non
citizen data
MINISTRY OF TRADE AND INDUSTRY
-Development of standards for priority crops and associated value chain activities
-Establishment of food and feed manufacturing companies
MINISTRY OF AGRICULTURE
-Agriculture Extension Service
-Administration of Crop Management System
-Administration of Micro Scale grants
NATIONAL DEVELOPMENT BANK (NDB)
-Issuance of loans including Supervised Credit
-Disbursement of annual grant to Micro Scale Farmers
-Redemption of Mmoko reward Vouchers
-Administration of fencing and tractor subsidy
BOTSWANA INTERNATIONAL UNIVERSITY OF SCIENCE AND TECHNOLOGY (BIUST)
-Development of Temo Crop Management System
BOTSWANA AGRICULTURAL MARKETING BOARD (BAMB)
-Distribution of fertilisers to microscale farmers
-Collection of Tlatsa difalana-Tema ke kgetsi contributions
-Aggregator

46 Temo Letlotlo
 Ministry of Agriculture
Plot 4701, Mmaraka Road, Private Bag 003, Gaborone
Tel: +267 3689000
Fax: +267 3906769
Email: [email protected]
Temo thuo call centre/Toll free: 17755
Website: www.gov.bw

Temo Letlotlo