New Anguilla Government Says No to Foreign Agricultural Investment

On June 29, 2020 the Anguilla Progressive Movement party was elected into office representing one of the youngest political cabinets in the region. The unseated Anguilla United Front government had raised the GDP growth of Anguilla to one of the highest in the region, and had also successfully managed the COVID19 threat making Anguilla one of only a few nations in the world with a zero incidence rate. The APM election campaign included a strong mandate to move towards clean energy and increased food security for a nation that currently imports over 97% of its food requirements.

Minister of Economic Development, Commerce, IT, and Natural Resources the Hon. Kyle Hodge with responsibility for Agriculture, is one of the youngest new cabinet ministers. Prior to entering politics he owned and operated Tropical Treats ice cream company, one of the few companies that produces ice cream locally.

In a controversial first move, the Minister announced during a press conference hosted on August 13, 2020 that a moratorium on all new foreign business licenses would come into effect immediately and stay in place until July 31, 2021. In addition, he specifically stated that the Government would not entertain any new foreign direct investments in agriculture, citing the need to produce more food locally through existing farmers. This announcement comes at a time when every other island government in the region is aggressively pursuing the attraction of FDI in agriculture to help build their island food security, a situation which has only accelerated this year since the pandemic now threatens food import supply across the region.

Anguilla currently imports virtually all of its food supply needs. There are a few poultry and livestock farmers, as well as a growing fishing industry, but no dairy production. According to the Anguilla Statistics Department, crop farming GDP contribution to the Anguilla economy in 2019 amounted to a total of US$201,493.00, a level only 3 basis points higher than the average annual production over the past 9 years, and the lowest GDP contributing sector of the total Anguilla economy.

Anguilla is a coral based island and virtually all the land is non-arable. A small area of a few acres of arable farming land is located in the area around the main village, The Valley, and those lands are administered by the Department of Agriculture and leased out to local farmers who grow a limited variety of root and field crops. Several micro farms also operate on the island growing small amounts of green leaf lettuce and herbs almost all of which is ordinarily sold to the local restaurants.

Minister Hodge addresses all members of the Anguilla Farmers Association (Aug.2020)

Due to the intensity of tourism in Anguilla, with a dozen major resorts and over 200 restaurants, as well as about 20 supermarkets selling fresh produce, the volume of fresh produce imports (almost exclusively from the US) is approaching 3 million pounds a year. Minister Hodge's actions seems to imply that Anguilla will substitute this massive fresh produce import volume by increasing production solely by local farmers, notwithstanding the severe lack of farmland and ongoing climate threats that the island of Anguilla faces each year.

It now remains to be seen if a protectionist policy now established by Minister Hodge will succeed in Anguilla.