Johannesburg – The Agricultural Business Chamber (Agbiz) this week said the empowerment of black farmers would be high on the agenda of government this year.
Agbiz chief economist Wandile Sihlobo said the essential points that did not dominate the policy discussion last year, but would likely be on the agenda this year, were agricultural finance and commercialisation of black farmers and the development of rural areas.
“The agricultural finance discussion will probably build from the Land Bank’s liquidity challenges and broaden in search of new and efficient financing methods. In terms of the commercialisation of black farmers, this could gain momentum, but not necessarily at the expense of smallholder farmers’ support and initiatives,” Sihlobo said.
Studies have shown that specific limiting factors facing emerging farmers are poor infrastructure such as poor roads, lack of transportation from the farms to markets, lack of marketing skills and insufficient land availability to expand production, lack of agricultural implements to improve production, and poor production and farm management skills.
Last year, the government announced plans to allocate 700 000 hectares of state land to black farmers.
One of the requirements is that applicants must demonstrate evidence of farming experience. Sihlobo also said he expected government’s agricultural master plan to be launched in the first quarter of the year.
“After the launch, the material work on growth and expansion in the sector will begin … the general master plan theme will likely dominate and provide direction to the Department of Agriculture, Land Reform and Rural Development’s approach on broader farmer development initiatives this year.”
President Cyril Ramaphosa on Friday told the ANC’s NEC lekgotla that the sectoral master plans developed by the government, including one for agriculture, would be instrumental in reviving the economy.
“This lekgotla should also take stock of the measures taken to deepen the productive base of the economy, especially the sectoral master plans that have been concluded. We should also look at how through these various initiatives we cannot only deepen the productive base of our economy, but how we can advance the empowerment of black people, women and young people,” the president said.
The agriculture sector is also benefiting from record low interest rates. Paul Makube, a senior agricultural economist at FNB Agri-Business, said lower rates were positive for the agriculture sector, especially at the height of agricultural activity and increased credit demand.
“We still expect the agriculture sector to post another stellar performance during 2021.’’
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