AGRICULTURE AND LAND
Chapter6
Provincial Budgets and Expenditure Review
Agriculture and Land
Importance of Agriculture
- Implements, machines, seeds, fertilizers, etc
- Agri-processing industries
Reforms in the sector offer opportunities for BEE
Broadening Access to Agric
What can be done for emerging farmers?
· Animal health
- control of ticks and related diseases - infrastructure and chemicals (dip or injections that prevent external parasites)
· Soil and plant science
- Soil sampling and testing - appropriate uses
- Use of high yielding hybrid seeds, fertilisers, etc
- Crop rotation
· Management of farms as business ventures
Comprehensive Agricultural Support Programme(CASP)
· CASP was introduced in 2004/05 to complement LRAD
· It has six main priority areas:
Do prov. budgets reflect CASP priorities?
Budget & Expenditure Trends
· Total sector budget grows by 11,7% over the 2005 MTEF from R4,6 bn in 2004/05 to R6,4 bn in 2007/08.
· Provinces account for more than 70% of total expenditure - R3,4 bn in 2004/05 from R2,3 bn in 2001/02
· Over the 2005 MTEF prov. budget grow by 11,0% on average to R4,7bn in 2007/08
CASP grant to compliment Farmer Support –R12 bn over the 2005 MTEF
Provincial Expenditure by Programme
Table6.4 Provincial agriculture expenditure by programme, 2001/02 to 2007/08
R million |
2001/02 |
2002/03 Outcome |
2003/04 |
2004/05 Preliminary outcome |
2005/06 2006/07 007/08 Medium-term estimates |
||
Adminstration |
539 |
610 |
671 |
833 |
798 |
865 |
937 |
Sustainable resource |
226 |
246 |
272 |
263 |
468 |
537 |
577 |
Farmer support and development |
991 |
1,170 |
1,400 |
1,588 |
1,745 |
1,990 |
2,215 |
Veterinary services |
255 |
280 |
308 |
340 |
370 |
400 |
423 |
Technology research and development services |
181 |
220 |
244 |
224 |
281 |
290 |
309 |
Agricultural economics |
20 |
23 |
33 |
46 |
59 |
65 |
70 |
Structural agricultural training |
88 |
93 |
123 |
152 |
155 |
171 |
183 |
Total |
2,299 |
2,641 |
3,052 |
3,447 |
3,876 |
4,318 |
4,714 |
[PMG Note : Tables for the Programme 3: Farmer Support & Development including CASP for the years : 2004/05; 2005/06;2006/07; and 2007/08 :Not Included]
[PMG Note : Table for the Personnel vs Non-Personnel Expenditure: Not included]
Budget & Expenditure Trends
· Proportion of personnel spending declines from 69,4% in 2001/02 to 51,9% in 2007/08.
· Notable reduction in personnel share in KZN, Limpopo, EC and FS provinces
· Non personnel provides complimentary inputs - farm infrastructure, transport1 animal health, etc
Service Delivery Trends
Farmer Support & Development Programme achievements include:
- Training provided to 11 776 emerging farmers and 2153 commercial farmers
- Implementation of mentorship programmes for emerging farmers and commercial farmers (481 and 217 respectively);
- Advice support to 35 494 emerging farmers and 9164 commercial farmers; and
- Finance provided to 164 farmer development projects.
- Progress in infrastructure development ie revitilisation of irrigation schemes, and dipping for communal grazing
Land Reform
2007/08.
- Land Restitution takes up the largest share on the land reform programme
- Restitution increases at an annual average of 48% from R1,4 bn in 2004/05 to R3,8bn 2007/08.
Concluding Remarks
- Provinces that incorporated homelands spend more on low skilled personnel, but need appropriate skills
- Measuring performance and quantifying key inputs is major challenge for accountability and determination of funding gap
- Increasing pace of land reform increases need for effective farmer support programme
· Need to redirect research towards the need of small scale farmers
· Need to extent financial services to the poor in a sustainable way
· Appropriately skilled personnel to provide technical and business development training and advice to farmers
Questions and issues for discussion
Are government support programmes for emerging farmers working?
- Do we know how many extension officers am needed vs those available?
- Do we have enough vets?
Are we training enough people in these fields?
- Is there clarity on norms & standards for delivery of farmer support services
- What do outbreaks of diseases imply:
· For the efficacy of preventative programmes?
· For the risk of transmission of diseases to humans;?
Questions and issues for discussion
- What is the appropriate balance between funding for land reform (LRAD) and for farmer support services?
- Do provincial budgets reflect CASP priorities?
- Is Research & Development meeting the needs for sustainable development and funding of small scale farmers?
- How do we address information gaps?
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