Submission to JOINT BUDGET COMMITTEE (JBC)

THEME: Rural Development and Urban Renewal

The Policy Statement on page 11 made reference to..."provisions for infrastructure....and enhanced spending on land restitution and land reform.

Sufficient statistics exist to show that this is taking place and that land is being placed in the hands of rural communities and emerging farmers. Our experience has reviled that this process requires diligent review in the light of numerous .problems on the ground.

Whilst land acquisition is vital to this process, the absence of a business model and support services remains a threat to success. Unless these initiatives are based on commercial viability the long-term sustainability is in question.

Our view is that greater emphasis should be placed on productivity, than volume of output. Our findings are that, not enough business-based support programs accompany agricultural projects involving small-scale farming. The focus should be food security and job creation. Both of these could be addressed at local authority level.

The report on page 21 made strong reference to building capacity in agriculture..." as the central theme of government's land reform policy and stated that "the advancement of land reform programs", will broaden access to farming among previously disadvantaged communities.

 

Agrid SA strongly believes that the fundamentals for success with these programs lie in the support and appropriate mechanisation for small-scale farming. Small-scale emerging farmers need to acquire an additional set of skills to ensure sustainability and success. From being just workers on the land, they now have to deal with; Manufacture, Production, packaging, Marketing, Finance and Human relations. Without training and support the whole process could be jeopardised.

The key issues are:

· Land

· Funding (Local authorities, Umsobomvu Fund and others)

· Appropriate mechanisation (Shade and tunnel farming, Land parcels) Training (Cash-flow crop rotation, crop selection, machine servicing)

· Business development support (Viable Business Model, Marketing)

 

Agrid SA are the largest, if not only, suppliers of power hoe equipment specifically designed for this sector of the market. An individual farmer is able to plough a hectare of land in a day using this equipment. The maintenance and upkeep costs are no more than that for a lawnmower. This level of equipment enables the farmer to be independent and not reliant on shared equipment or expensive and unreliable rented services. Agrid have the infrastructure and can provide both the technical and agricultural support for emerging farmers.

Funding at local authority level should be more "project" oriented so as to incorporate all the elements just described. Public/Private partnerships should be encouraged and promoted. This option brings expertise and skills to projects and will assist local authorities with the planning and execution phases.

 

Greg Palm Marketing Manager

082 495 4732