Agri Limpopo is a federation of farmers’ associations located across Limpopo.  

Through its affiliated membership, Agri Limpopo represents a diverse grouping of individual farmers regardless of gender, colour or creed.

We aim to protect and advance the interests of our members and of agriculture as a whole within the province.

This submission is made on behalf of Agri Limpopo, its affiliated associations and their member farmers.

Context

Agriculture in Limpopo has over the past few years been confronted with numerous challenges, including devastating drought conditions, sustained above inflations increases in electricity tariffs and outbreaks of Foot and Mouth Disease, amongst other factors, all of which has forced some farmers out of business and left others facing enormous financial constraints.

Our sector continues to face rising input costs.

Electricity is a key production input for the agricultural sector and increased tariffs will undoubtedly have a severe impact on the agriculture in Limpopo and its ability to contribute to economic growth and a reduction in unemployment, poverty and inequality.

This is particularly so with respect to irrigation-reliant and energy-intensive sectors such as horticulture, dairy, poultry, grains and the agro-processing industry.

The current trajectory of rising electricity tariffs over many years is unsustainable for the economy as a whole and for agriculture in particular.

Further increased electricity tariffs (on top of years of above-inflation and unsustainably high increase) will only add further unnecessary pressure to an already constrained operating environment for the agricultural sector.

In our view Eskom’s business model is no longer sustainable. The real solution lies in the radical reformation of the entire electricity sector.

 Agri-Limpopo’s Recommendation

Considering the above, we recommend that Eskom’s RCA application not be approved as:

• The Agricultural sector can no longer sustain sustained above-inflation electricity tariff increases.
• The proposed increase will negatively affect the agricultural sector which is already under pressure.
• Eskom’s business model is broken and no longer sustainable.
• The real solution lies in the radical reformation of the electricity sector.

Public Hearings

Agri Limpopo wishes to make further representations to you during your Public Hearing process.

Deidre Carter                                                             

CEO Agri Limpopo   

0828319168

NERSA SUBMISSION 20200119 Rev0              

The post Comment on Eskom’s 2018/19 Regulatory Clearing Account (RCA) Application appeared first on Agri Limpopo.

Agri Limpopo expresses its extreme concern over the current outbreak of Foot and Mouth Disease (FMD) in Limpopo, its current consequences and future impacts.

The outbreak in Limpopo has the potential to collapse the entire red meat industry – unless urgent and decisive action is taken.

As Agri Limpopo we share the sentiment of Agri SA regarding the national banning of livestock auctions that –

• the banning of auctions will have a serious adverse economic impact on the agricultural sector,
• the decision to ban auctions can only be a short-term measure to contain the outbreak of FMD; and
• that the deficiencies and challenges faced by Government in mitigating and curtailing the outbreak must be acknowledged and resolved moving forward.

The ban comes at a time when farmers are grappling with a drought – thus exacerbating the difficult and trying times for the agricultural industry as a whole and specifically for red meat producers.

We do not believe that the current action of banning auctions goes far enough to mitigate and bring the current outbreak to an end.   We need far more comprehensive, decisive and urgent action.  We need –

• urgent policing interventions with regard to the transportation of animals;
• to protect areas in Limpopo that have not been affected; and
• to take decisive action regarding stray animals and animals feeding on road reserves.

We call upon all stakeholders in the sector, public and private, to work together for the common good of the red meat industry – to bring to and end the current outbreak of FMD and to put in place a local protocol to mitigate against future outbreaks.

Agri Limpopo will work closely with the relevant authorities and urges its Members to adhere to the necessary safety protocols.

ENQUIRIES:

PIET ENGELBRECHT (PRESIDENT) – 082 524 8924

DOUW PELSER (SAFETY & SECURITY)  – 082 820 5228

DEIDRE CARTER (CEO) – 082 831 9168

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The post POSITIVE FOOT-AND-MOUTH DISEASE RESULTS IN THE MOLEMOLE DISTRICT OF LIMPOPO appeared first on Agri Limpopo.

“Eskom has implemented Stage 2 load shedding from Wednesday, catching the South African economy off guard,” says Nicol Jansen, Agri SA Chairman: Economics and Trade Centre of Excellence. “More advanced warning could have made a big difference for farmers and businesses to adjust their planning accordingly.”

Load shedding has an impact on irrigation-reliant and energy-intensive industries like the horticulture, dairy, poultry, grains and agro-processing industry. Irrigation, irrigation scheduling, the application of fertilizer, processing and shipment are all negatively affected by the unplanned load shedding disruptions. Over 25% of the country’s food is produced by irrigation-reliant and energy-intensive industries. 

“The burden of load shedding is unacceptable. We need our economy to grow and uplift all South Africans. The unreliability of electricity supply is a major constraint on our economy and the outlook for economic growth. In addition to rising electricity tariffs, the occurrence of load shedding disrupts business activity and is accompanied by direct and indirect costs.”

Whilst the cabinet’s recent approval of the Integrated Resource Plan (IRP) 2019 is a step in the right direction, more urgent government actions are needed to mitigate the electricity sector crisis. These include (but not limited to):

• The appointment of an Eskom CEO with proven leadership capability;
• Restructure Eskom, considering a holistic review of the energy sector and the electricity supply industry;
• Manage future electricity tariffs in a transparent and predictable manner;
• Take decisive action on debt relief and the refinancing mechanism;
• Encourage broader private sector participation, for example small-scale embedded generators (SSEGs) in agriculture, eliminating administrative constraints.

In the short-run, Eskom will have to give more consideration to its customers, giving advanced warning of load shedding disruptions.

Enquiries

Nicol Jansen

Agri SA Chairman: Economics and Trade Centre of Excellence

(C) 082 948 2629

Dr. Requier Wait

Agri SA Head: Economics and Trade Centre of Excellence

(C) 073 304 0932

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The controversial land claims lodged by five groups of claimants against various farms in the Melmoth area in Kwazulu-Natal has taken a drastic turn during this week when the dispute between the state and the landowners regarding the just and equitable compensation that the state must pay to the landowners, was due to be heard in court. In an attempt to settle the claim, the landowners had offered 9000 hectares of highly productive land to the state.

“The claim, which was originally lodged over 42 000 hectares could have been finalised almost a year ago, had the Valuer-General, and the previous Minister of Rural Development and Land Reform, Maite Nkoana-Mashabane not intervened in the matter”, said Annelize Crosby, Agri SA Head: Land.

An agreement was reached in March 2018 between the valuers appointed by the state and the land owners respectively, that just and equitable compensation amounted to approximately R760 million. The Valuer-General, however determined the value of the land at about R420 million. This was of course not acceptable to the landowners. The Minister was not prepared to offer more than the value determined by the Valuer-General.

“Following a legal battle of 13 years, during which time the landowners were forced to spend millions of Rands, there was still no resolution,” explained Crosby. “The landowners then took further legal action with the help of Agri SA.”

In a judgement which sets the tone on this issue acting Judge Canca ruled in the Land Claims Court that landowners are not bound by the determination of value by the Valuer-General, but that they can approach the Land Claims Court to determine just and equitable compensation. The dispute regarding compensation was then brought to a head and set down for hearing in the Land Claims Court for 16 to 18 September 2019.

The landowners obtained the services of further experts who lodged reports at court. These experts then met with the experts appointed by the state.  At this meeting, the previous agreement between valuers, reached in March 2018, was confirmed. The valuers also agreed that an upward adjustment was merited to reflect the increase in value since March 2018, resulting in an increase in the compensation that landowners were entitled to.

The case took an unexpected turn when the current Minister, Thoko Didiza lodged a notice at court a few days before the hearing to the effect that she would abide by the ruling of the court in the matter.

One day before the hearing, the Minister and the Restitution Commission made an offer to the landowners to purchase the land for a total amount of R805 million. The landowners were prepared to accept this offer. In terms of the relevant rules of court, the dispute between the state and the landowners was then settled on the basis of the offer made by the state and agreed to by the landowners. It follows that the state is also liable for the legal costs of the landowners.

Ever since the dispute regarding compensation arose, Agri SA had wholeheartedly supported the lndowners and contributed a substantial sum to the legal costs, and specifically the cost required to acquire the services of highly qualified experts.

Shortly prior to the hearing, the state still maintained that the landowners were only entitled to the amount of compensation determined by the Valuer-General (which was based on the controversial regulations promulgated under the Property Valuation Act.) The landowners were ready to lead expert witness testimony to challenge this approach of the state. The state however acknowledged defeat and made the offer to the landowners. The result is that the compensation that the landowners will receive, is about double the amount determined by the Valuer-General

“The outcome of the case is positive for other landowners who find themselves in a similar position as the Melmoth landowners,” said Dan Kriek, Agri SA President. “The outcome also demonstrates that the state will likely not get away with making offers which are substantially below market value.”

Agri SA’s view has always been that just and equitable compensation, in most cases, should approximate market value. Agri SA is committed to being involved in test cases to ensure that the interests of landowners are protected when compensation is determined. Agri SA would like to thank and congratulate the very able legal team of, Bertus van der Merwe from Cox and partners, Adv Gerhard Roberts(SC) and Adv  Elana Roberts.

Enquiries:

Annelize Crosby

Head of Agri SA’s Centre of Excellence: Land

(C) 082 388 0017

The post Outcome in Melmoth-case huge success appeared first on Agri Limpopo.

The report, as it stands, is not good news for commercial agriculture or for the future of the country’s agricultural sector as a whole.

We are particularly concerned at its recommendations supporting the amendment of the Constitution (our Bill of Rights, in fact!) so as to facilitate ‘expropriation of land without compensation’ and those relating to ‘land ceilings’ and a ‘new land tax’.

The report, and these three matters in particular, will affect investor and business confidence (which is already at an all-time low) and has the potential to affect food security, if not suitably unresolved.
We remain committed, with AGRI SA, to actively defend the rights and interests of our Members and the agricultural sector as a whole.

We believe in a more pragmatic and responsible approach to the challenges we face as a nation (particularly as far as land reform and agriculture is concerned), one in which established commercial farming is empowered to assist in driving ‘inclusive agricultural development’ – and remain committed to participating in such initiatives.

The processes to amend the Constitution, adopt the new Expropriation Act, and levy the proposed new punitive land tax must still unfold. As AGRI Limpopo we will, with AGRI SA, continue to advance and protect the interests of our members and agriculture as a whole.

Issued by Deidre Carter

Cell 082 831 9168

The post Agri Limpopo stands in solidarity with the Farming Community and the position adopted by AGRI SA in response to the release of the Presidential Advisory Panel on Land Reform and Agriculture’s report. appeared first on Agri Limpopo.

“If the recommendations contained in this report are implemented to the letter, food security for all South Africans will be compromised,” says Omri van Zyl, Agri SA Executive Director. “Investor and business confidence are already low, and the last thing we need is further strain on the economy and the agricultural sector.”

Agri SA President, Dan Kriek, was a member of the Presidential Advisory Panel on Land Reform and fully vested himself in this process. However, it became clear that there were fundamental differences in opinion and approach to land reform within the panel. Kriek and fellow panel member, Nick Serfontein, therefor compiled an alternative report with a focus on private sector solutions.

“The alternative report presents identifies common-sensical solutions to land reform, which is lacking in many aspects of the panel report,” says Annelize Crosby, Agri SA Policy Head: Land. “We are strongly of the view that land reform in farming areas will take a huge step forward with the establishment of an agricultural development agency where the private sector takes a leading role in driving and financing sustainable land reform.”

Time-consuming consultation processes that will likely follow the panel report could hamper the implementation of land reform.

“The focus should be on working together and implementing meaningful projects to the betterment of the sector,” says Crosby. “However, should these consultation processes unfold, we will participate fully and make sure that the economic realities, which are not sufficiently addressed in the report, are put on the table.”

Agri SA is also concerned about the motion in Parliament on Thursday that indicates a clear intention by the ruling party to press ahead with the unnecessary and potentially damaging amendment of the property clause.

“This is clearly only being done for political reasons, as it is not warranted and will not solve the land reform problem,” said Crosby.

Agri SA remains committed to our members and the sustainability of the agriculture sector. Agri SA wish to reiterate that we are against any amendment of the Constitution and will leave no stone unturned to protect farmer’s rights.

[Background to the reports follows hereafter]

Enquiries:

Omri van Zyl

Agri SA Executive Director

(C) 082 417 5724

Annelize Crosby

Agri SA Policy Head: Land

(C) 082 388 0017

The post PANEL REPORT RAISES RED FLAGS FOR AGRICULTURE appeared first on Agri Limpopo.

Controversial recommendations:

The Panel’s recommendations are comprehensive and, in some cases controversial. Agri SA cannot support these controversial recommendations. Some of the worrying recommendations are:

• The amendment of section 25 of the Constitution to enable expropriation without compensation, a moratorium on farm-evictions and the removal of the 1913 cut-off date for restitution;
• A compensation policy which boils down to a set-formula for compensation to current landowners. The proposal is that there should be a compensation spectrum from zero to minimal to substantial to market-related compensation. There is a suggestion that those who inherited land should be treated differently than those who bought land after 1994.
• Forced on-farm settlements;
• That private title should not be allowed in communal areas;
• The consideration of a land tax,
• Land ceilings;
• A proposal that land for redistribution should be identified at municipal level based on land needs and that the current landowner will be given an opportunity to donate the land, enter into negotiations with the state or face expropriation;
• Water allocation reform where water rights must be re-allocated to smallholder-farmers;
  The regulation of foreign ownership of land.
  Other recommendations:

The Panel recommends a new White Paper process

Whilst Agri SA will always participate in all policy processes that can affect our members, these processes take up a huge amount of time and they take up a lot of resources, also in terms of taxpayers ‘money.

From Agri SA’s point of view, and this was also stated in the High-Level Panel Report on Key legislation, the main problems, are not policy related, but can be attributed to poor implementation, inadequate budgets and corruption. These are the things that require priority focus and attention, not the policy side of things.

A National Land Reform Framework Bill:

Although there may be merit in drafting redistribution legislation, it is not entirely clear what aspects such a Bill will address and how. There are indications in the Report that such legislation may be used to target and then forcefully acquire land identified by municipalities as being required for redistribution. This is an invitation for corrupt practices and misuse of power. Coupled with proposals for expropriation without or at minimal compensation, this will exasperate uncertainty in farming areas and further contribute to disinvestment in the farming sector.

Subdivision of land:

Whilst Agri SA agrees that some subdivision may be necessary, wholesale subdivision of a scarce resource in the absence of legislation that protects high quality agricultural land, is dangerous for the future of food security in our country.

Land donations:

Agri SA has cautioned that the number of farmers who are in a position to donate land should not be over-estimated. Many farmers are struggling to make ends meet and economy of scale is a survival mechanism for farmers. Also, no real incentives are in place as yet to encourage farmers who can do so, to donate land;

Water rights re-allocation:

This is actually a debate on its own. Agri SA needs to point out that water is a scare resource in South Africa and that commercial irrigation farmers make a huge contribution to food production and export earnings.

Registrable rights for farm dwellers:

There are recommendations contained in the report that seem to indicate an intention to register the tenure rights of farm dwellers who are residing on commercial farms and to then enforce those rights in competition with the rights of the current landowner. This reminds one of the 2010 Land Tenure Bill, which was very controversial at the time;

Recommendations that can be welcomed, include:

• Measures must be taken to curb corruption;
• A land audit of public and private land that takes into account the Agri SA / ADS/Landbouweekblad audit results;
• Establishment of a Land Reform Fund;
• Transparent beneficiary selection;
• Strengthening the capacity of the Restitution Commission in order to enable them to expedite claims;
• The development of outcome indicators for successful land reform monitoring and evaluation.

The alternative report:

Agri SA has also studied the alternative report submitted by Dan Kriek and Nick Serfontein. This report focusses on the role of the free market and the private sector in land reform and contains practical proposals of how agricultural land reform can be achieved in a sustainable manner. Important elements of the alternative report are:

• A land depository;
• A land reform Fund;
• Joint ventures;
• Farmer support;
• Enablers / incentives for participation by commercial farmers;
• A Social compact
• Beneficiary selection

Agri SA broadly supports the principles of these proposals. We are strongly of the view that land reform in farming areas will take a huge step forward with the establishment of an agricultural development agency where the private sector takes a leading role in driving and financing sustainable land reform. We also believe that we should build on existing best practice models such as the ones showcased at the Bela-Bela land summit last year.

Way forward

Agri SA is concerned about several aspects of the report and particularly the controversial recommendations highlighted earlier.

We are of the view that rather than having more time-consuming consultation processes, the focus should be om working together and implementing meaningful projects now.

However, should these consultation processes unfold, we will participate fully and make sure that the economic realities, which are not sufficiently addressed in the report are put on the table.

In the meantime, Agri SA will continue on full steam with its many transformation initiatives and with the establishment of an agri development fund

The post Agri Limpopo denounces Land Reform Report, supports stance of Agri SA appeared first on Agri Limpopo.

Click here to download the full report.

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In the case of Zimbabwe, 2019/2020 maize imports could reach at least 900,000 tonnes to meet annual consumption of about 2-million tonnes. Meanwhile, Mozambique will most likely double its typical maize import volume of about 100,000 tonnes a year to fulfil a domestic need of about 2.3-million tonnes. For Malawi, imports could amount to at least 200,000 tonnes. The key question is where these countries will source these additional supplies.

In the recent past SA, Zambia and Mexico have been the main suppliers of maize to Mozambique, Malawi and Zimbabwe. But in 2019 conditions could change somewhat as supply from SA and Zambia is expected to be tight due to forecasts of poor harvests. If we assume SA’s expected production of 10.6-million tonnes materialises, the country could have only about 1.1-million tonnes of maize available for export. A large share of this will most likely be destined for Botswana, Namibia, Lesotho and Eswatini, which won’t leave much for Mozambique, Malawi and Zimbabwe.

Click here to download the full report.

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