Farmer's Weekly (South Africa)
COVID-19: a farmer’s perspective
The agriculture sector was declared an essential service and given the green light to operate normally during the COVID-19 lockdown. Nonetheless, many farmers have suffered losses due to trade disruption.
The impact of the coronavirus disease (COVID-19) pandemic has been felt worldwide as governments have implemented stringent measures to protect their citizens.
Many businesses have also felt the severe impact that COVID-19, and trade and movement restrictions put in place to slow down the spread of the disease, have had on their bottom lines.
The general assumption is that because people need to eat and farmers produce food, farmers would never find themselves in a situation where they have to close shop. The food value chain has, after all, been declared an essential service.
But as a crop farmer, my experience proves that farmers have not been as unaffected as many might believe.
SLOW DEMAND FOR FRESH PRODUCE
It is easy to assume that the COVID-19 lockdown would result in an increase in demand for fresh produce, as more people are cooking from home and trying to eat healthily. The reality, however, is quite the opposite. The Johannesburg Fresh Produce Market, which is normally visited by thousands of daily buyers procuring fresh fruit and vegetables, has been hard hit by the epidemic. Since the lockdown was enforced, market agents have confirmed a reduction in sales, especially due to the sudden closure of the hospitality industry.
Farmers who send their produce to the fresh produce markets are directly affected by this. When produce is ready to be harvested, it cannot simply be left on the land for another week or two. Farmers are forced to harvest and deliver to a market that is experiencing low demand, and as a result, an oversupply of produce.
In addition to the effect experienced on the market, the closure of schools has also had a negative impact on farmers who produce primarily for school feeding schemes.
REDUCED FARM REVENUE
The low sales have resulted in reduced income for farmers, making it very hard to continue operating, paying salaries and suppliers, and ensuring general maintenance and upkeep on farms. Despite efforts from a number of institutions offering COVID-19 relief funding to businesses, not all farmers meet the eligibility criteria to be considered. For example, not all farms are 51% blackowned (management control), and some small-scale farmers are unable to quantify their revenues as they do not produce annual financial statements to prove how the pandemic has affected their farms. Furthermore, funding excludes farmers who are not registered as taxpayers and for UIF.
THE CLOSURE OF SCHOOLS HAS AFFECTED FARMERS WHO PRODUCE PRIMARILY FOR SCHOOL FEEDING SCHEMES
The situation is extremely worrisome for farmworkers who are remunerated on a daily rate and for contract workers who are in demand during peak harvesting times. Because of the low demand for fresh produce, resulting in low sales, farmers cannot afford to keep staff employed.
Moreover, with there being a shortage in protective clothing and facial masks across the country, the need to ensure the safety of workers by providing protective clothing puts added pressure on the already strained farm cash flow.
With strained finances and reduced income for many farmers, there is a great deal of uncertainty about whether or not farmers should plan for production over the next few months. Right now, no one can predict when demand will return to normal.