By INDERIA SAUNDERS, Guardian Business Reporter

The stagnant economy may be blighting dreams of farm ownership, with the Ministry of Agriculture signing off on over 60 new lease agreements in a year marked by tightening credit.

Minister Larry Cartwright argues the government's asking price of $25 per acre per year is arguably the cheapest option available to would-be farmers hoping to sow business seeds in this challenging environment.

"We have seen quite a number of applications coming through our office...banks are seemingly not as willing to lend," he told Guardian Business Wednesday. "It's the best way to go and there is land reserved for agriculture use, so it's best to use that than buy property for agriculture right now."

That banker reluctance is evident in the more stringent lending terms attached to both consumer and commercial loans. The phenomenon is being driven by an increase in non-accruals sector wide as borrowers see wages cut and layoffs mount.

Any farmer looking for start-up capital for equipment or land, but without significant assets to offer up as collateral, is unlikely to win backing. If in fact the money is made available, the terms attached are likely a deal breaker.

"Mostly our farmers and fishermen must use the banks to purchase and develop the land and equipment for their business," he said.

"That's the way banks go, once a person has the appropriate collateral then they let you get the funds."

His comments hit on a key concern critics of the government's plan to encourage leasing instead of land ownership are now voicing.

Farmers leasing land are largely without that much needed collateral. It means that loans for farming tools and new planting material may be off the table given the economy. Without those land holdings investing in more profitable orchard farming—also less labor intensive—is outside the reach of Bahamian farmers.

That kind of farming was the chief reason the previous administration, working with the Development Bank, pledged to help a group of squatting farmers in San Andros acquire land they've husbanded for decades. While Cartwright's government had earlier suggested it would bring that program to fruition, it has yet to do so. Instead, it seems to have moved to expand it leasing program.

The Minister, however, is confident that renting is the best way of getting more Bahamians into agriculture at the same time growing domestic food supply.

"We are encouraging young persons to come into the field," he said. "We're making land available to farmers, with the main emphasis on growing food, and to grow more food you need more land available to farmer and we need more farmers.

"[Leasing land] is one way to do it."