SA suffers critical optimism drought

American humorist Will Rogers once said “a farmer has to be an optimist or he wouldn’t still be a farmer …” Today, in South Africa’s agricultural sector, optimism is drying up like the rains did a year ago.

A staggering 20 640 farms are up for sale as more and more farmers throw in the towel. This figure is the highest it’s been in the past 20 years and more are expected to quit the industry in the next 12 months.

That’s ominous news, not only for the sector, but the entire economy.

Agriculture is one of our biggest employers, accounting for 5% of all jobs. Already, thousands of farmworkers have lost their jobs and more could follow.

As the farming sector declines, so the country becomes more reliant on imported foodstuffs, which are sold in foreign currencies. Not only does this mean that we, the consumers, will be at the mercy of fluctuating exchange rates, it also means an ongoing drain on the foreign reserves of the country, neither of which is good for the economy.

Worryingly, if there is a drought in a foreign country which is one of our main suppliers of a particular food, we might face shortages.

Farmers are battling to recover from the drought and many have little prospect of borrowing more to get out of trouble.

They face increased input prices, stagnating commodity prices and are worried they eventually might lose their land, without compensation.

It would be simplistic to think the emptying platteland presents a solution to the land reform issue. Simply giving people land, without the support necessary to make it financially viable, is a recipe for disaster. But the crisis could also pose an opportunity for the government, to protect and strengthen our farming business and, in the process, revive that eternal optimism.