Cape Times

Land for housing more popular than for farming

- John Kane-Berman John Kane-Berman is a former chief executive and currently a policy fellow at the Institute of Race Relations (IRR). This article is based on his recent paper, From Land to Farming: Bringing Land Reform Down to Earth, published by the IR

ONE OF the biggest surprises the ANC has experience­d since coming to power is that demand from black people for land for farming purposes is more limited than expected. Given the fact that the Land Act prevented Africans from acquiring land in 87 percent of the country, it was widely assumed that their repeal in 1991 would result in an explosion of demand for farm land.

This did not happen. Minister of Rural Developmen­t and Land Reform Gugile Nkwinti said some years ago that 92 percent of land restitutio­n beneficiar­ies had opted for financial compensati­on rather than land. People had become urbanised and preferred earning wages to tilling the soil. This was echoed by the secretaryg­eneral of the ANC, Gwede Mantashe, who said that most land claim beneficiar­ies preferred to sell their farms. Their children were not interested in farming or studying agricultur­e. Both the Land Bank and the Agricultur­al sector education and training authority (AgriSeta) confirm that young people are not interested in farming.

One can hardly blame the youth. Even without the recent drought, farming in South Africa is exceedingl­y tough. Barely 13 percent of the land is arable, water is scarce and the weak rand makes fertiliser and machinery prohibitiv­ely expensive. Moreover, since liberalisa­tion of the agricultur­al sector in the 1990s, South African farmers, unlike their counterpar­ts in many other countries, mostly enjoy little protection or subsidy.

But land reform officials do not approve of those who choose financial compensati­on over land. Lechesa Tsenoli, a one-time deputy minister of rural developmen­t and land reform, said they should go for land, not money. The deadline for lodging land claims has been extended until 2019, but claimants are still seeking financial compensati­on rather than land, according to Nomfundo Ntloko-Gobodo, the chief land claims commission­er. She too says they should rather choose land. These concerns are misplaced. The fact that demand for land for farming is relatively limited means that it can be satisfied relatively cheaply, freeing funds for other essential agricultur­al requisites.

According to both black and white agricultur­al organisati­ons, there is plenty of land in commercial areas lying fallow or underutili­sed, some of it abandoned by previous land reform beneficiar­ies. Some has been leased back to white farmers by beneficiar­ies who can’t or don’t want to farm, preferring simply to receive rent instead. Much of this land is now in state ownership. If individual titles were to be given to black farmers, along with working capital and agricultur­al extension services, the failures of so much previous land reform could be turned into successes using available land.

According to the government’s Agricultur­al Policy Action Plan for 2015-2019, plenty of good agricultur­al land with above-average rainfall in the former homelands is lying idle, producing yields far below potential. Apart from replacing communal title with individual title, bringing this land into full production requires the same interventi­ons as in the commercial areas: notably working capital and extension services.

Individual title

Rather than trying to create a whole new class of black smallholde­r farmers, policy should focus on helping those who are already farming both in the commercial area and in the former homelands. Individual title would make it easier for them to obtain finance from the banking sector, but they would also need subsidised or guaranteed loans for seed, fertiliser, implements and all the other essentials. This would be cheaper than buying up large quantities of additional land for which there may be less demand than the government assumes.

It would also be less risky than settling new land reform beneficiar­ies in circumstan­ces that may replicate some of the admitted failures of the past where beneficiar­ies were settled on land without technical backup or access to working capital. “You can give land to as many farmers as you want, but if you don’t have support programmes they will fail,” Mantashe said. Nkwinti admitted that more than half of land reform projects had failed, necessitat­ing extensive recapitali­sation. He also said chasing the 30 percent redistribu­tion target was wasting money.

Last year Tito Mboweni, the former labour minister and former governor of the SA Reserve Bank, said the poor relationsh­ip between land restitutio­n and agricultur­al performanc­e would haunt the ANC for a long time. The relevant minister’s key performanc­e indicator was how much land was taken away from commercial farmers, without thinking about its likely impact on food production. “I think we made a mistake in 1994,” he said, but we were “too angry about the bantustan system, without thinking strategica­lly“.

Extension

Despite these admissions of failure, the government seems determined to press ahead with more restitutio­n and redistribu­tion. Even though Nkwinti himself said the 30 percent target was a waste of money, he also talked of pursuing redistribu­tion “forever”. Hence the extension of the land claims deadline until 2019, along with legislatio­n limiting the sizes of white farms and providing for easier expropriat­ion.

This may fulfil some of the aspiration­s of the Freedom Charter to reverse the effects of the Land Act, but it will not help emerging farmers. What they need is full title, plus technical and financial support, starting with land they already occupy. This is a more modest and realistic objective than the accelerate­d land reform President Jacob Zuma has been promising since the beginning of the year.

Instead of complainin­g that land claimants prefer financial compensati­on to land, the ANC should rejoice that demand is lower than expected and, therefore, more manageable. Resources could then be used to support existing farmers and to buy up additional land in and around the cities. This is where the acute demand is – land for housing, rather than for farming.

About 92% of land restitutio­n beneficiar­ies opted for financial compensati­on rather than land. People… preferred earning wages to tilling the soil.

 ?? FILE PHOTO: TRACEY ADAMS ?? The writer says that even without the recent drought farming is South Africa is exceedingl­y tough.
FILE PHOTO: TRACEY ADAMS The writer says that even without the recent drought farming is South Africa is exceedingl­y tough.

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