By Lucille Botha
Plans in agriculture have been formulated for thirty years, but very few – if any – ever come to fruition. Wandile Sihlobo, Agbiz’s chief economist, and Prof. Johann Kirsten, director of the Bureau for Economic Research, attribute the blame for this equally to commodity and agricultural associations as well as the government in their new book, The Uncomfortable Truth about South Africa’s Agriculture.
The book was officially released on the evening of Wednesday, 26 March, in Stellenbosch. According to Wandile, by confronting several “uncomfortable truths” about agriculture, this sector has the potential to significantly contribute to economic growth by addressing three central challenges facing South Africa: unemployment, poverty, and low growth, particularly in rural areas.
Role of organisations
One reason so few plans are executed, and change happens very slowly, if at all, in agriculture is the many organisations established for reasons such as “money, personality, politics, and religion.”
“There are Afasa, Nafu, and Safda, AgriSA, TLU, Saai… Why do we have all these organisations? Is it just for the fun of having everyone around a table at a ministerial delegation, where they don’t agree with one another or find common ground? When we make plans, we often disagree and attempt to sabotage them,” says Kirsten.
Sihlobo believes that all these organisations put agriculture in a state of inertia. “When a policy or program is written, there are six different perspectives on this and twelve different perspectives on that. Then, months are devoted to ironing out minor details, and before you know it, there’s a new leader, and the process starts all over again. So, we spend a lot of time in meetings and feel we’ve achieved something when we’ve produced a document, but it means that nothing is being done.”
Kirsten says: “Many of these organisations are created solely to extract money from the government and their members. Many of these organisations lack audited reports. Egos and a pursuit of money are deeply embedded in our organisations.”
Land ownership facts
The book thoroughly explores financing, the support system for land transaction beneficiaries, biosecurity, agricultural marketing, agricultural product standards, local government, and the Southern African Customs Union. However, how land is owned in South Africa likely encapsulates the essence of the book.
Kirsten and Sihlobo have illustrated land ownership in South Africa using a pie chart. The 122 million hectares of land in South Africa are distributed as follows:
- Three percent is not specified because it is found on mountains, beaches, or along rivers.
- Nine percent is owned by government, including conservation, forestry, defence, water affairs, and correctional services.
- Ten percent of the land is occupied by industrial mining.
- Fifteen percent of the total area is former homelands.
- Sixty-three percent, or 77.5 million hectares, is classified as agricultural land (44 million hectares are in the Karoo and Kalahari and consist of extensive livestock grazing, while only 18 million hectares is arable land).
A total of 11% (13.5 million hectares) of the 77.5 million hectares of agricultural land belongs to black farmers who obtained it through corrective or redistribution programs, restored to communities, or purchased by private individuals with cash or loans.
The state owns 2.5 million hectares of agricultural land not used for farming. Approximately 1.5 million hectares is arable, while the remaining land is suitable for livestock production.
“To grasp the scale of 2.5 million hectares, we should note that all grains and oilseeds in South Africa are cultivated on approximately 4.5 million hectares,” Sihlobo states, adding that little advancement is being made regarding black farmers’ contributions to agricultural output due to the government not transferring the land, leaving it underutilised.
The South African government has taken more than 2 million hectares of land out of food production and allocated it for other purposes since 2006.
The book highlights that transformation is not merely about replacing one person with another but expanding the pie. “Why, then, are plans for this not being executed? What is causing the delay? The blame cannot solely rest on the government; commodity and agricultural associations also share responsibility.”
Myths examined
In one chapter, the authors explore the myths surrounding agriculture, one of the most prominent of which is the belief that there are only large-scale white commercial farmers in South Africa.
“However, official statistics from the 2017 census, published in 2020, indicate that 90% of large-scale white commercial agriculture farms have a turnover of less than R30 million per year. Additionally, 45% to 50% of these farms report a turnover of less than R5 million annually.”
According to the Department of Trade and Industry, small, medium, and micro enterprises are categorised as micro-enterprises. However, politically, they are viewed as problematic, large-scale commercial farms owned by white individuals.
“Conversely, Patrice Motsepe and President Cyril Ramaphosa own large farms, but are they small farmers?” Kirsten asked. “These misconceptions about South Africa persist. Many large black farmers exist, yet they remain unrecognised. Conversely, numerous small white commercial farmers struggle for survival but are classified as family farms.”
Urgency needed
Sihlobo notes that the book stands apart from other works he and Kirsten have produced due to their markedly different approach. “It is likely written in a more confrontational tone and in a way that instils a sense of urgency in the reader regarding our desired changes in South Africa’s agriculture,” he says.
Considering the recently signed Expropriation Act and the American debate surrounding South Africa’s agricultural industry, the book emerges at a time when clarity regarding land and rural development is essential.
The Uncomfortable Truth about South Africa’s Agriculture costs R290 and is published by Tracey McDonald Publishers.
Click here to read an excerpt from the book.
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