By Lebogang Mashala
Over the past few weeks, several provincial departments of agriculture and rural development have invited farmers to apply for assistance through their Comprehensive Agricultural Support Programme (CASP). This farmer support programme provides grant funding targeted explicitly at beneficiaries of land reform and black producers in South Africa. It is a conditional grant administered through provincial agriculture departments to enhance agricultural productivity, create employment opportunities and increase wealth in rural economies. So, they say!
However, I have some concerns and mixed feelings about these state interventions aimed at supporting farmers. While I believe the intentions are good, the implementation often frustrates the primary targets, particularly subsistence and smallholder farmers.
Funding clarity remains elusive for farmers
For instance, a recent advertisement from the North West province leaves several questions unanswered. Although it clearly states the targeted farmer categories (subsistence, smallholder and commercial), as well as the types of support offered (such as on- and off-farm infrastructure, production inputs, enterprise and business development, and training), it fails to specify the maximum amount that can be applied for.
In my opinion, the lack of clarity surrounding CASP funding is a significant issue. Over the years, it has been unclear how various funding redirections have influenced CASP, particularly through the Blended Finance and the Presidential Employment Stimulus Initiative (PESI). If I recall correctly, during the Covid-19 period, funds allocated to CASP and Ilima/Letsema were redirected to PESI to address concerns about food security. That exercise turned out to be a complete waste! To this day, we still lack a clear understanding of the programme’s status.
I mention this because there was an announcement indicating the programme had ceased operations. However, it was relaunched last year under Phase 3. What is the current status of this programme? If it is operational, what impact does it have on CASP funding?
Blended finance adds to the confusion
There’s another question regarding how the Blended Finance Scheme affects CASP funding. Since the announcement of blended finance, there has been a lack of clarity about whether the maximum amount of funding that can be applied for is impacted. Additionally, it will be helpful to know if applying for and potentially receiving CASP funding affects a farmer’s ability to apply for blended funding.
During several events where officials discussed these two funds, the term “double dipping” was frequently mentioned. It is crucial that this information is clearly communicated to farmers.
If there is no clarity on the funding cap for CASP applications, there is a risk that farmers may apply for the amount they believe they need in their business plans. This could become a disadvantage if the business plan ultimately requires funds beyond what is permissible.
I also find the requirements to qualify for the grant, particularly for small farmers, quite puzzling. While the list of requirements is long, two stand out: the water license and the offtake agreement. These requirements highlight the disconnect between policymakers and the realities faced by smallholders in the country. Just last week, I highlighted some of the challenges these farmers face and the difficult conditions in which they operate. Burdening them with such unrealistic requirements is simply unreasonable.
Obtaining a water license is a complicated process, even for commercial farmers. What about small farmers residing in rural areas, such as the Eastern Cape or Limpopo, where accessing a Water Affairs office is a daunting task, not to mention navigating the lengthy application process.? Many of these farmers rely on informal markets and have successfully sustained their businesses within those systems. Moreover, offtake agreements are not as great as often suggested. I know commercial farmers who have struggled under these contracts, while many prefer supplying open markets, such as informal and municipal fresh produce markets. But that is a topic for another conversation.
Unrealistic timelines compound the problems
The final concern I have is the timeframe between the announcement and the closing dates for these applications. The North West invitation was issued this week, on 16 July, with a closing date of 15 August. This essentially gives farmers less than a month to prepare their applications. They mention that forms can be accessed through the local office or downloaded from their website. However, the forms are not currently available on the website. One might wonder if there is a genuine intention to assist farmers or if this is simply a superficial exercise on their part.
Time for transparency and realistic support
I genuinely believe answers exist for many of these questions, and I hope they can be shared transparently with farmers to eliminate confusion that has significantly eroded confidence in these processes. Many farmers have lost hope and hesitate to apply for interventions, believing these opportunities are reserved for individuals with connections within the department.
On a lighter note, I hope everyone had an inspiring Mandela Day. And let’s strive to keep sharing small acts of kindness with someone less privileged on a regular basis, in the spirit of Madiba. Enjoy the weekend and stay warm!
