SA Farming - the situation

[Bob Molloy]

 
Land Reform in South Africa - so, what is the REAL problem?
Wednesday, 22 May 2013
Quoted from South Africa - the Good News


The government has set itself the target of transferring 30% of South Africa's arable land into the hands of emerging farmers.  Currently only about 8% has been purchased from existing, successful commercial white farmers on a 'willing buyer-willing seller' basis and transferred to emerging farmers.  This has involved some 4 800 transactions.  It is estimated by the S.A. Institute of Race Relations that some 80% have "failed" as continuing commercial operations.

Many reasons have been put forward to explain this:

    * Lack of financial backing for the new owner
    * Lack of experience and expertise of the new owner
    * Lack of interest on behalf of the new owner
    * Lack of training and guidance of the new owner

Commercial Agriculture in South Africa is a difficult business:

    * Over the past 20 years the number of commercial farming units has reduced from approximately 60,938 in 1996 to 39,982 in 2007, and an estimated 30,000 in 2012, a 50% decline;
    * An estimated 3000 farmers and farm workers have been murdered since 1994;
    * South African farmers are amongst the least subsidised in the world;
    * For years South Africa has been a net exporter of food, now it is a net importer.  Food security has become a critical issue. 
    * Farmers are price-takers, presently a sachet of milk sells for R8.99 in the supermarket, the farmer receives R3.60; two years ago the farmer received roughly the same.
    * Input costs have risen steeply; the cost of diesel has risen 20% in two years, fertilizer by 22%, and the minimum wage by 50%. 

[SandyB]

Sad  fact is the polito's dont know how hard it  is to farm , in fact they know squat about  real life  becoming so insulated  from it ....            ...     only preocupied with  the agenda and not the reality . Maybe for them a stint  of life education  working with a commercial farmer  should be a qualifying criteria for holding any portfolio  to do with such a crucial to food security industry ??