AGRICULTURAL CONSULTING SERVICES


PACE OF LAND REFORM IN SOUTH AFRICA


These comments are made from the background of an Agricultural Consultant involved in both "White commercial Farming " and working with the Eastern Cape government to assist emerging farmers


The farming community ( Almost all white ) has to a large degree been sidelined from the whole BEE hype and generally all white farmers tarred with the same brush when it comes to many aspects related to the whole reform initiative.


I don't pretend to represent the majority of commercial farmers but those in my consulting group which are mainly in the Eastern Cape area. The farmers produce about 10% of South Africa's milk and pork so are not without substance.


As a group we have looked at many Land Reform projects over the past three years.


In summary they have failed because of funding issues.


Our frustration with upping the pace of Land Reform revolves mainly around four issues.


Unless the perceptions of people and government are changed we are heading down a rooky road to nowhere.


Government needs to find and align itself with the forward thinking farmers of this country and focus on the positive aspects of agriculture and communicate this to the people both at grassroots and at BEE corporate level.


The most suitable vehicle to deliver grassroots change to the people is agriculture but not an agriculture of subsistence but a vibrant expanding black owned commercial sector creating jobs for the masses. The focus must be on exports and incentives to acquire idle land and turn it into

economically viable growing businesses.


The current finding systems in place are cumbersome and slow and we have lost many property deals simply because the seller was unwilling or unable to wait for finances to be put into place through the present delivery channels of Land Affairs and Land Bank.


The financial institutions, while supposedly making funds available have such onerous security and related requirements that emerging farmers are unable to be financed. We are of the opinion that they are not serious about fulfilling there obligations to BEE and the result is little or no progress can be made in acquiring land for staff and communities.


The total aversion of the banks to risk taking is not limited to commercial banks but Land Bank are also unwilling to relax their lending rules to facilitate empowerment deals.


The have been many figures put on the table as to the value of Agricultural ground and the census stats are too old to be of value. Our estimate is that the value of agricultural ground must be in the region of R 90bn and for the target of 30% Black owned to be reached some R 30bn needs to be found over the next ten years. The current budget from the Dept. of Land Affairs is nowhere close to being adequate. This leads me to conclude that government is not serious about land reform or they have not done their homework.


The financial charter numbers have been concluded and of the R 122bn only R1. 45bn has been available for the development of Black agriculture ( ONLY -1%)


Unless the perceptions of people and government are changed we are heading down a rocky road to nowhere.

Government needs to find and align itself with the forward thinking farmers of this country and focus on the positive aspects of agriculture and communicate this to the people both at grassroots and at BEE corporate level.

The most suitable vehicle to deliver grassroots change to the people is agriculture but not an agriculture of subsistence but a vibrant expanding black owned commercial sector creating jobs for the masses. The focus must be on exports and incentives to acquire idle land and turn it into

economically viable growing businesses.


The current finding systems in place are cumbersome and slow and we have lost many property deals simply because the seller was unwilling or unable to wait for finances to be put into place through the present delivery channels of Land Affairs and Land Bank.


The financial institutions, while supposedly making funds available have such onerous security and related requirements that emerging farmers are unable to be financed. We are of the opinion that they are not serious about fulfilling there obligations to BEE and the result is little or no progress can be made in acquiring land for staff and communities.


The total aversion of the banks to risk taking is not limited to commercial banks but Land Bank are also unwilling to relax their lending rules to facilitate empowerment deals.


The have been many figures put on the table as to the value of Agricultural ground and the census stats are too old to be of value. Our estimate is that the value of agricultural ground must be in the region of R 90bn and for the target of 30% Black owned to be reached some R 30bn needs to be found over the next ten years. The current budget from the Dept. of Land Affairs is nowhere close to being adequate. This leads me to conclude that government is not serious about land reform or they have not done their homework.


The financial charter numbers have been concluded and of the R 122bn only Ri.45bn has been available for the development of Black agriculture ( ONLY m)


With this sort of attitude and budget allocation it is impossible for Agriculture to take its right fall place in the transformation and upliftment of the rural poor.


In summary I urge all the role players both in public as well as the private sector to get serious and get urgent and align yourselves with those farmers who want to promote and participate in reform. We are a country which revels in reporting failure and looking back- lets change that attitude, get positive, sort out the financial delivery channels and get on with the job of creating a life for all the citizens of this country. Agriculture is the only sector that can deliver sustainable economic change at grassroots levels.


We need to accord it the priority and urgency it deserves.


I thank you for the initiatives that this government has taken to tackle the issues at hand and trust that we can move forward as one nation with a common goal of a better life for all.


Yours faithfully


J.J. EVERY

AGRICULTURAL BUSINESS CONSULTANT

CONTACT DETAILS

P.O. Box 15515

Emerald Hill

Port Elizabeth

6011

Tel 0413794800

Fax 0413794404

Cell 0826525105