By Dr Siphe Zantsi & Noluthando Ngcobo from Research Support and Coordination at the Agricultural Research Council (ARC)
Smallholder livestock farmers are achieving greater success compared to crop farmers on land reform farms, highlighting the advantages of livestock farming in these contexts.
The South African land reform policy is mandated by the Constitution and aims to achieve restorative justice and equitable land ownership across all racial groups while also protecting the rights of farm workers and individuals living in former homelands. Since the policy was established through the 1997 White Paper, the land reform initiative, particularly the land redistribution component, has faced significant criticism. This includes a slow pace in redistributing farms to black farmers and poor performance on the farms that have been redistributed.
For this article, “emerging farmers” refers to those who have benefited from land reform, specifically individuals from previously disadvantaged racial groups – namely blacks, Indians and coloureds (collectively referred to as black farmers in this article). Based on our previous research, it appears emerging farmers tend to perform better in livestock farming compared to other agricultural sectors, such as horticulture and crop farming. In this article, we explore the implications of this observation for the success of the land redistribution programme within the broader context of the land reform policy.
The productivity gap between small-scale agriculture, from which emerging farmers are drawn, and commercial agriculture is known to be quite significant. This disparity contributes to the dualism within our agricultural sector. For instance, maize yields show that smallholders attain an average of 2 tons per hectare, while the commercial sector averages 6 tons per hectare. This results in a productivity gap of 4 tons per hectare, which is substantial.
We assume a wider productivity gap leads to a slower catch-up time for emerging farmers as they begin to take over some commercial farms through the land redistribution programme. In our published study, we found the livestock activities of potential emerging farmers, particularly in cattle farming, exhibit a smaller productivity gap when compared to crop activities relative to their commercial counterparts. For example, 86% of potential emerging farmers achieved an offtake between 61% and 100% of the offtake attained by their commercial counterparts in cattle farming. In contrast, for goats, the offtake ranged between 40% and 60%, and for sheep, the highest offtake rate was only 6% compared to commercial farmers.
Overall, while the productivity gap for maize is lower than for livestock, it is still considerably narrower than the gaps found in horticultural enterprises, such as vegetables.
Why is livestock farming a better bet?
The success of smallholder farmers in livestock production is largely due to their lower input costs. While commercial farmers invest significantly in high-yield maize varieties and advanced farming techniques, smallholder farmers focus on cost-effective livestock practices. With the right support and resources, emerging farmers have the potential to rapidly scale their livestock operations to compete with those of commercial farms.
The study reveals cattle farming is especially promising. Nearly 86% of potential emerging farmers operate at 61-100% of the commercial productivity level for cattle farming, which challenges the notion that smallholder farmers are always less efficient than commercial ones. Furthermore, cattle farming plays a vital role in rural economies. Many of these emerging farmers not only raise cattle for their own consumption but also sell their livestock at local markets, thereby supporting their communities and growing their businesses.
What is the relevance of the findings to the success of land reform
What does the narrow productivity gap between emerging farmers and commercial farmers in livestock off-take mean for the success of land redistribution? It suggests that emerging farmers may have a better chance of succeeding in livestock farming, particularly in beef cattle operations, compared to other agricultural enterprises, such as wine farming. However, it is important to note the productivity gap, which reflects farming skill, is not the only factor influencing success.
We use the term “may” because several other factors contribute to how an emerging farmer performs in a commercial farming setting under the land redistribution programme. One significant factor is finance. Running a farm business requires money to purchase inputs, such as feed, animal remedies, acaricides, vaccines and to pay labour costs. For beneficiaries of land redistribution, financial support often comes through the Comprehensive Agricultural Support Programme (CASP), which beneficiaries report can take a long time to materialise. The Department of Agriculture, Land Reform and Rural Development (DALRRD) is actively working to improve this situation.
Additionally, knowledge and access to formal markets are crucial. Operating at a commercial level often necessitates a reliable market, especially when selling many weaners at once, as it helps reduce transportation costs to the market. Many commercial farms are situated far from informal markets, such as communal areas and townships, where people typically buy cattle for ceremonies.
The significance of this narrower productivity gap is further underscored by the fact that approximately 80% of South Africa’s agricultural land is only suitable for livestock grazing. According to the 2017 Census of Commercial Agriculture, many farms are mixed-use, with a substantial percentage of livestock enterprises. Furthermore, most redistributed land reform farms are livestock farms. Therefore, achieving success in livestock farming could lead to greater overall success in many redistributed farms.
Moreover, livestock farms, which primarily utilise land for grazing, tend to be less expensive than horticultural land equipped with fruit trees, vines and irrigation systems. This means a more significant number of livestock farms can be acquired for redistribution to black farmers within a given budget compared to horticultural farmland.
However, this does not imply that land reform beneficiaries should only receive livestock farms. Land redistribution must aim to balance racial land ownership while considering the training and investment costs associated with each type of farmland enterprise.
The success of land reform is vital for the sustainability of our agricultural sector and national food security. It is equally important to achieve successful land reform to dispel the negative perceptions surrounding it. This success requires coordination and support from all stakeholders. Farmers, the government, the private sector, researchers and beneficiaries all play a crucial role in making land reform effective.
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From nurse to successful vegetable farmer – Sophy Litshani Musabeni’s courageous quest towards her true calling
