Bid to remove land title bottlenecks

THE Kwazulu-natal Department of Agriculture and Rural Development is trying to unblock bottlenecks holding back agricultural enterprises on communally owned land.

Department spokesperson Khaye Nkwanyana said they were pinning their hopes on talks with the Ingonyama Trust about land tenure, which was stifling development in rural areas.

“Since the department is responsible for rural development, we need to solve the communal land tenure insecurity issue to unlock agricultural enterprises that will help develop rural areas,” said Nkwanyana.

The trust holds land that belonged to the erstwhile Kwazulu government.

“Young people living in rural areas who want agricultural entrepreneurial opportunities end up demoralised and go to urban areas for the opportunities there, instead of making a difference where they are.”

Nkwanyana said it was hard to say how many farmers in the province were affected by communal land tenure insecurity, but many complained of battling to secure funding.

“Some approach our department, saying they could not get loans from institutions such as Ithala, the Land Bank and commercial banks,” he said.

Last year, Land Bank research on land reform found rights on communal land remained an unresolved problem that hindered the progress and success of the government’s land reform programme.

FNB KZN head of agriculture Marc Strydom said insecure communal land tenure was a political hot potato. “The communal ownership of individual projects and the land issue is not the only limiting factor, but it’s obviously a major restriction.

“One also has to consider that large areas that are not fenced pose a disadvantage for cropping, in terms of damage to crops, and with livestock in respect of disease and genetic improvement.” Secure property rights and title deeds would provide funding institutions with better security when supporting a farming business.

“This is even more important when the business is in the startup phase, as many developing farming businesses are.”strydom said agricultural finance in South Africa was mostly backed by bonds over the farming properties.

“In the unfortunate scenario of the farmer not succeeding, this principle ensures that the farm moves from a less productive person to a more productive farmer. This ensures the resources of the country keep moving to more efficient operators,” he said.

Title deed ownership or long-term property rights, administered through the Deeds Office, should be granted to owners in communal areas.

“Those with the passion, ability and determination to farm can start accumulating land and will achieve economies of scale.”