The safety of rural communities is high on his agenda, John Steenhuisen said in an interview with African Farming’s sister publication, Landbou.com, after his first budget speech as Minister of Agriculture. He also discussed why he emphasises the implementation of the Agricultural Master Plan.
Master plan as foundation
The plan, adopted in 2022, is the framework on which the inclusive growth of the agricultural sector is based, and it enjoys wide support in the sector.
Steenhuisen said that since his appointment, he had made clear that he does not intend to reinvent the wheel. “My focus will rather be on the accelerated application of the plan’s objectives and ensuring that my department fulfils its obligations as outlined in the plan.”
The plan is built on several key pillars, such as inclusive growth and job creation, especially for rural communities, while improving market access for agricultural products and facilitating local and international trade.
It focuses on developing robust value chains for key commodities and promoting sustainable agricultural practices to enhance climate resilience and increase yields.
Furthermore, it prioritises innovation, research and development regarding technological advancements and best practices in the sector, and the importance of agricultural infrastructure and investment in human capital to promote the industry.
Steenhuisen said he plans to build on the committees already created to execute the plan.
“Through the leadership of my predecessor, who I believe established very close and mutually beneficial relationships with the industry, we are on the right track in this regard. My immediate task is to build on the solid foundation laid by the former minister [Thoko Didiza].
“I firmly believe in the importance of the survival of small and large farmers and agricultural businesses. The plan contains the same principles and makes my work easier. I will apply change management in institutionalising interventions in government and industry programmes, as well as initiatives that will promote the inclusive growth of this sector.
“When agricultural economists report on foreign earnings based on export volumes, we must be able to show that small farmers represent a larger part of our market access. For me, that will be the definition of inclusive growth.”
Farmers, farm workers SA’s greatest asset
“The greatest asset that the department and indeed South Africa has is the incredible farmers and farm workers of our country,” said Steenhuisen. “They are world-class producers and rank among the best in the world. They need our thanks, they need our support, and they need us on their side.”
The minister said that while his department wants to support larger commercial operations in expanding and flourishing, new entrants must be empowered to become self-sustaining and productive as quickly as possible.
“To support farmers in growing and developing and to contribute to household food security, we must have a comprehensive database of farmers and be able to understand what type of support they need in each case.”
Blended finance
Steenhuisen plans to further expand the blended finance scheme developed by the department to provide smaller farmers with access to affordable financing.
To date, the department has established successful partnerships with the Industrial Development Corporation, the Land Bank and Absa. Agreements will soon be signed with FNB, Nedbank and the Small Enterprise Finance Agency.
Since March 2021, R3,107 billion has been made available to the agricultural sector through blended financing for the development of 183 commercial black farmers, with R1 204 billion of this amount in the form of grants. As of March 31, 2024, the IDC approved 29 transactions worth R1,915 billion, with R587 million in grants. Some 1 445 jobs are expected to be created as a result.
The Land Bank approved 154 transactions worth R1,192 billion, with R617 million in grants, creating 1 973 jobs. Absa signed the agreement with the department on May 16 and is undergoing internal processes and changes to prepare all its branches for the implementation of blended financing. The department and Absa will soon announce the implementation date.
The Agro Energy Fund is another blended finance instrument developed in partnership with the Land Bank to support all eligible farmers and agricultural processors, regardless of race, with alternative energy sources.
The fund was launched on August 29, 2023, and by May 31 this year it had approved R24,425 million in financing, with R7,989 million as grants and R16,436 million as loans, supporting nine transactions.
“I encourage farmers to make use of this instrument to diversify their energy sources,” said Steenhuisen.
The department will continue with initiatives such as the Comprehensive Agricultural Support Programme. Through this, grants for development are awarded to farmers who cannot afford loans. These are largely subsistence and small farmers on arable land.
The support includes the provision of infrastructure on and off the farm, production inputs, mechanisation, training and mentorship, extension support, and ensuring that small farmers receive accreditation and certification to provide safe and high-quality food to the market and the public through the customised SA-GAP certification programme implemented with the Perishable Products Export Control Board.
Grants and extension officers
According to Steenhuisen, he has read the portfolio committee’s critical reports on some of its oversight visits, including on the Presidential Employment Stimulus Initiative and the conditional grants intended for farmers. “It is concerning that money intended for farmers, in some cases, was never received,” he said.
Extension officers remain an important component of support to farmers, and the department will continue to explore ways to increase and improve the services and support offered by extension officers.
“We will review the process of allocating grants and measuring their actual impact on the ground. It is crucial that farmers benefiting from these grants appear on a database,” said Steenhuisen.
“Henceforth, funding will only flow to provinces with proper planning and accountability, and payments will be based on meeting targets that are properly reported on quarterly. I also take note of the Special Investigating Unit’s reports on conditional awards, which will receive my full and urgent attention.”
