Sunday Times

Land: first fix state’s own tenant crisis

Thousands of black farmers on national land desperate for title

- By BOBBY JORDAN jordanb@sundaytime­s.co.za

● Less than a third of black grain farmers in a countrywid­e assistance programme are producing any crops because they have little or no access to bank finance, according to data from producer organisati­on Grain SA.

The vast majority of these farmers — about 3,800 in total — farm on government­owned land, and therefore have no individual land title to acquire loans from credit facilities. Attempts to get the government to provide guarantees for use as collateral have thus far failed, prompting concern about these farms’ viability.

Grain SA, the country’s biggest producer organisati­on, is appealing to key government stakeholde­rs to rethink land reform policies in the light of findings that suggest that simply expropriat­ing productive farmland to transfer to black farmers could dramatical­ly decrease SA’s maize crop to the point where imports would be required — resulting in price increases.

A Grain SA delegation presented its findings to parliament recently after continuing meetings with political stakeholde­rs, notably the ANC. The topic was also at the forefront of debate last week at a large agricultur­e exhibition in Bredasdorp, attended by about 4,000 farmers.

Rather than risk a crop-production nightmare, the government should rather transfer title of government land to individual farmers to enable them to invest in their land, Grain SA CEO Jannie de Villiers said on the sidelines of the Bredasdorp show.

In cases where black farmers have been properly recapitali­sed — such as the nearly 150 black farmers producing more than 250 tons within the Grain SA assistance programme — the success rate skyrockets to about 90%, compared to the majority failure rate for small farmers with no capitalisa­tion, De Villiers said.

“We’ve always said if we can develop [existing] black farmers then it places less pressure on land reform. But we can’t move these guys forward because they can’t get finance — because they don’t have title deeds,” he said.

Of particular concern was Grain SA’s cohort of about 800 small farmers with between 10ha and 50ha who were “going nowhere” due to the finance stalemate. Said De Villiers: “These are all potential commercial farmers but all of their land belongs to government. There is no finance for them.”

The Credit Act prevents banks extending credit without adequate security, and without credit — and effective mentoring programmes — emerging farmers are illequippe­d to deal with additional stresses such as drought and crime, and the growing threats of fall armyworm (now present in all nine provinces) and climate change.

De Villiers said the results of the Grain SA assistance programme — a public-private partnershi­p involving industry and government funding — raised big questions about how the government would manage land expropriat­ion: “The issue is whether they will expropriat­e with or without title deed. If you do it without [title deed] then we influence food security.

“In our pool, only about 30% of black farmers are producing, the rest are forced to just sit on the land. This is why we are saying we want a sustainabl­e land reform programme. It must solve the problem, otherwise it will just expand the problem.”

If national production fell below 11,5Mt (the past season yielded an impressive 13,8Mt), poor South Africans in particular would be worse off due to the knock-on effects of grain imports, said De Villiers.

A case in point is North West farmer Ramodisa Monaisa, who is sitting on 1,000ha of government land acquired last year. “I’m stuck because I can’t go to the bank,” said Monaisa.

“When people look at our farms it seems to them as if black people cannot work or are lazy. We are ready to plough but the challenge is finance.

“At the present moment the government we thought will come and help us is now just leaving us. We feel hopeless. It can be so

‘We are ready to plough but … I’m stuck because I can’t go to the bank’

frustratin­g when you wake up in the morning and you don’t know what to do. We see opportunit­ies but because we don’t have money we are just idling about,” he said.

De Villiers said successful subsistenc­e farming interventi­ons had proved their value: in the Grain SA programme, subsistenc­e farmers had typically increased their yields from about one ton to more than four tons. To qualify for the programme, farmers invest R3,500 of their own capital and receive about R10,000 worth of inputs such as seed and pesticides.

Economist Theo Vorster, from Galileo Capital, said technologi­cal and knowledge assistance was vital in reducing the “yield gap” between small-scale and commercial farmers. Lack of access to cash and land title also prevented emerging farmers “from accessing the mainstream farming support value chain”, Vorster said.

Despite the sensationa­l soundbites from “fringe” players such as the EFF, key stakeholde­rs were making meaningful progress towards a consensus about challenges.

“For the first time there is really honest discussion between the parties … this is the chance for SA to clarify a lot of things.”

 ?? Picture: Reuters ?? Koos Mthimkhulu’s farm in Senekal in the Free State is the picture of health, but about 70% of black farmers on government-owned land cannot produce a crop because, without title to the land, they can’t get a bank loan. Says one North West farmer: ‘We feel hopeless. It can be so frustratin­g … you don’t know what to do.’
Picture: Reuters Koos Mthimkhulu’s farm in Senekal in the Free State is the picture of health, but about 70% of black farmers on government-owned land cannot produce a crop because, without title to the land, they can’t get a bank loan. Says one North West farmer: ‘We feel hopeless. It can be so frustratin­g … you don’t know what to do.’

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