TAU SA's response to Pres. Zuma's speech at AFASA Congress
Pres. Zuma is rightly concerned about rising food prices. However, it is to a large extent determined by supply and demand. Increased production can result in lower prices, but only if other prerequisites are in place, such as adequate water of good quality as well as efficient and reliable infrastructure. These requirements are responsibilities of Government.
Agriculture cannot assume government's responsibility to handle social grants. Agriculture is an economic and not a socialistic activity.
Only less than half of the 11 000 newcomers mentioned by Pres Zuma and who were located on small holdings are contributing to agricultural production. This did not result in increased production which makes this scheme an exercise which did not contribute to increased production.
TAU SA supports the idea that unused land in communal areas should be brought into commercial production. However TAU SA repeats its view that it must include non- and underutilized state land, whether such land are under the control of the central-, provincial- or local government institutions.
This implies that the required land audit receives urgent attention because it seems evident that Government has no idea of ??the land under its control.
Mr. Zuma's idea of District Reform Committees creates doubt: farming days are already short and international competition is high. To use production time for meetings, which will in essence be to the detriment of other landowners by identifying their land to be sold under market value, is unethical and creates the possibility for tension within communities as well as reducing food production.
To buy land from whomever at 50% of its market value, amounts to expropriation or even nationalization. Some properties were bequeathed from estates, which means widows and orphans will be affected.
The proposal that commercial farmers who will participate in this project will qualify for BEE status and that their properties will be safe amounts to extortion. "Help us to identify and remove other farmers and you're safe." Farmers who may not have the ability to participate are thus running the risk to remain subject to erroneous legislation.
Mortgage bonds for a term of 40 years does not sound economically justifiable. A farmer will literally remain in debt for the rest of his life. Financial institutions will also run the risk of losses when someone passes away before having paid his mortgage.
The cost of land reform can not be carried by commercial farmers. If Government wants to reform, it has to provide funds for that purpose. It cannot expect from victims to help paying for it. This will effectively take a lot of farmers out of agriculture, with a consequent reduction in food production thus putting food security under severe pressure.
Overall Pres. Zuma's proposals are not feasible and may even be counter-productive in terms of food security. TAU SA reiterates its concern that emotional and unrealistic expectations are created and which will not be sustainable. The country's interests will be served much better if more realistic and attainable goals are presented.
Agriculture currently needs long-term stability based on economic principles. While the world economy, which includes South Africa , is currently unstable, tampering with models which have yielded successes over decades and centuries will serve no purpose. New farmers will be able to entering the agriculture in large numbers if conditions favouring free market activities reign. Any forced disturbance increases the risk of disaster, as 95% of the land reform failures have already confirmed.
Statement issued by Mr Louis Meintjes, President: TAU SA, October 23 2012
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