TAU SA makes proposals on agriculture to Minister
After recent discussions between TAU SA with the newly appointed Minister of Agriculture and his deputy, TAU SA committed itself to submit the union's proposals for agriculture in South Africa to the Minister.
The following document was submitted to the Minister as basis for further discussions:
PROPOSAL: LAND RESTITUTION AND ACCESS TO LAND
INTRODUCTION
This proposal is formulated based on developments and considerations which have been under discussion within TAU SA since the turn of the century and which have been presented to key figures in government since 2005. It is designed to meet governments' expectations and targets whilst at the same time contributing to the creation of trust, stability and sustainability within the agricultural sector as well as the national economy at large.
The key considerations and factors which lead to the eventual formulation of this proposal could be summarised as follows:
The strategic importance to maintain domestic food security, the country's ability to support less fortunate neighbouring countries and to earn valuable foreign exchange through exports.
The creation of a fair and equitable restitution process which will achieve higher levels of success that will make it possible for new entrants to become self-sustaining commercial farmers.
The prevention of a widening gap between races caused by unfounded accusations of theft of land and the potentially damaging consequences thereof.
The critical strategic positioning of SA as a stable economic environment in which to invest thereby encouraging an influx of diverse capital with a positive knock-on effect on GDP, revenue collection and job creation.
Aligning policy, expectations and achievable targets with the National Development Plan.
Creating space and capacity to sustain the population growth, increased urbanisation and the demand for food.
Making it possible to accommodate varying scales of economy thus catering for existence farmers, small farmers, commercial farmers and large enterprises.
Protecting and ensuring the productive utilisation of high potential agricultural land.
Promoting entrepreneurship whilst creating sufficient security through private ownership to ensure access to finance.
PROPOSED CONCEPT
This proposal is based on the premise that 30% of agricultural land requires to be acquired to meet the target reflected in the National Development Plan which is based on a remaining 20% to be transferred for restitution purposes. A clear final target or a properly defined sunset clause is a prime requirement to establish stability in the sector.
It is therefore proposed that the following be implemented:
The land audit requires to be completed as a point of departure to identify progress to date and what the existing current ownership of land is in order to determine the balance of the 30% target on which the National Development Plan is based.
Land which has already been transferred in the process of restitution and which has become unproductive, should be re-energised by the application of dedicated efforts to ensure sustainability and profitability.
The privatisation of state-owned land and the division thereof in economic units covered by title deeds and which should exclusively be made available to new beneficiaries.
The development of agricultural land within the previous homelands enabling existing farmers and land users to obtain private ownership thereof to such an extent that an acceptable form of security enabling access to finance is assured.
Land which is available on the open market (currently about 6% of commercial farms fall into that category) should be made available to new entrants within a system of "first right of refusal". Should the state not decide to purchase the land at market value within a set period of time (three months), the land could be offered on the open market. Certain exemptions pertaining to the "right of first refusal" should however be honoured in cases where a property is sold to a family member and the like.
Potential farmers should be subjected to a selection process designed to determine their ability, including the correct attitude, to become farmers thus avoiding failure and continuing poverty. Successful candidates should then be given access to appropriate training.
Beneficiaries should be supported by a dedicated and full-time mentorship for a sustained period (3 - 5 years).
Soft loans should be made available to new entrants and they should only be expected to start repayment once the mentorship has successfully been completed. In this regard appropriate subsidisation of interest rates should receive sympathetic consideration.
Once the mentorship phase has been completed and all involved are satisfied that the candidates are sufficiently empowered to continue, only market forces, which applies to all farmers, should be regarded as a measure of success.
Should the above approach be designed to fit into the framework of the National Development Plan, the projected land targets will be met within a relative short period of time whilst at the same time making it possible for new entrants to the sector to receive functional training thus empowering them to ensure sustainable and profitable production. At the same time, the establishment of training facilities in especially rural areas and the utilisation thereof, will create new opportunities for job creation and economic growth.
In essence access to title deeds will provide much needed security which will enable access other possibilities requiring security.
In an effort to stabilise the sector, consideration regarding labour laws, rural development and security of tenure will require re-assessment in an effort to create an environment facilitating and promoting economic growth thus enabling the country to develop to its potential and to ensure proper caretaking of a valuable and irreplaceable resource.
Issued by TAU SA, July 24 2014
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