There is no real difference between an emerging farmer and a commercial farmer, said Professor Johann Kirsten – they are both in the business of producing commodities to sell.
By Charl van Rooyen, Senior Journalist at African Farming and Landbouweekblad
Prof Kirsten, the director of the Bureau for Economic Research in Stellenbosch, was speaking at the AgriOutlook Conference in Windhoek on Wednesday, which was attended by 350 people.
He emphasised the importance of agriculture, noting that growth in this sector is generally two to three times more effective than similar growth outside the sector in reducing poverty.
The conference focused strongly on transformation and inclusive growth. Prof Kirsten stressed that it was essential to transform agriculture from traditional, low-productivity subsistence farming into a more modern system where productivity is high and sustainability is prioritised.
Market orientation, value addition, modern technology, innovation and access to affordable finance are all necessary, he said.
“You can no longer start farming today with a loan at prime plus 2% interest. Decades ago, farmers could obtain loans below the prime rate – for example, prime minus 4% – and repay them over as long as 25 years.”
Also read: ‘Ownership a must for transformation’ – Steenhuisen
Agricultural Reform Requires Cooperation, Not Conflict
Transformation requires cooperation between government, agricultural unions, the private sector and communities, Prof Kirsten said. Effective government is therefore essential to encourage private-sector investment.
He said the task of agricultural unions in driving transformation included representing farmers’ interests and negotiating with government. “Unfortunately, agricultural unions are sometimes in conflict with each other, even though they all have the same goal: to promote inclusive growth and commercial agriculture. Such conflict leads to fragmentation, duplication and confusion, which prevents us from making real progress.”
Also read: Communal wool growers measure progress through flock competition
A Success Story
Prof Kirsten cited the impact of a programme by the National Wool Growers’ Association (NWGA) in South Africa on the productivity and income of communal wool farmers in the Eastern Cape.
These farmers’ combined income from wool sales was initially just R1 million per year. The NWGA provided modern shearing facilities and training in shearing, classification and marketing. Within 15 years, their income had increased to R500 million – and may be even higher now, he said.
“This is a fantastic success story achieved without any government involvement.”
Also read: Official partnership to empower smallholder woolgrowers
