What farmers are up against in 2016: drought, land transformation, BBEEE, disease, increased input costs, security and politics.
Resilience, an open approach and keeping up with the times is what is needed to see the dwindling number of commercial farmers through these tough times.
This was the message from Dr John Purchase, of the Agricultural Business Chamber, at regional meetings of the KZN Redmeat Producers Organisation and National Wool Growers Association, at the Research Station. Speaking on the topic, the Agricultural Development Plan and its influence on the agricultural sector, Dr Purchase commented that the number of commercial farmers has fallen from around 135 000 to less than half of that in 25 years.
The Agricultural Business Chamber works closely with farmers as a lobby group with direct access to Government in a bid to influence Government policy to help agriculture flourish.

“Government policy is that rural development, food security and the protection of environmental assets are all important. But how do we get there? The Government has set aside R2-billion to establish 44 mega-agri parks throughout the country including Northern KZN. This is a way of helping emerging farmers to gain knowledge and exchange ideas with established farmers. To date, there has been no formal roll-out of these,” Dr Purchase told the gathering.
“Land reform is an emotive subject. The Government wants the rural economy to be de-racialised. However, the Government must also create the environment for farmers to be productive. Entrepreneurs must be allowed to thrive.
Yet the land reform has caused uncertainty, especially with the re-opening of the Restitution Land Rights Amendment Act. The transfer of agri-land to black farmers, without distorting the market or impacting on business confidence, is what the Government seeks. But, since 2000, Government has spent R87-billion on land transformation but can only show a 7% land transfer success rate.
Meantime, total agricultural debt in 2014 stood at R119-billion.
“We have looked at the Namibian model of Right of First Refusal where the Government has two months to buy an identified piece of farming land before it goes on the open market.”

BBEEE is also impacting on agriculture: legislation means that farmers without BBEEE scorecards simply won’t get permits for water use or anything else issued by the Government needed for the farmer to operate.
Water use is also a hot topic. Soon, a National Water Regulator will oversee tariffs in the country just as NERSA oversee electricity tariffs. Agriculture uses 60% of the water in South Africa and the new regulations could see an increase of 65% in farmers’ water bills.
Despite all these negatives, Dr Purchase said South Africa has the best, most knowledgeable and productive farmers in the world.
Africa has opened up as a huge market with agricultural exports to the continent overtaking South African agricultural products exported to Europe.
“It is not the smartest guy who will survive. It is the guy who has the most open approach and is able to adapt.” As for the consumers, don’t take agri-food security for granted – the threats are real!
On a more positive note, Bom Louw, can assist sheep farmers in the area as he is a production advisor with NWGA while local farmer, Craig Carter, has been appointed field officer for the KZN RPO.