Following the Farm Equity Schemes (FES) review workshop yesterday Friday 11 March (which consisted of government, commercial farmers and farm worker share equity scheme partners), to discuss the moratorium the department placed on farm equity share schemes in June 2009, we are happy to announce the decision on this matter, based on the recommendations from this workshop.
The commercial farmers and farm share equity scheme partners, jointly deliberated on this matter, and advised the department to lift the moratorium on FES, subject to specific conditions being met.
Firstly, let us look at some of the reasons that necessitated the placement of this moratorium.
Various concerns were raised about the effectiveness of FES in meeting the strategic objective it was created for, subsequent to which various studies were commissioned to establish what the problems were.
These studies reflected, amongst others, the following:
- Lack of empowerment of beneficiaries
- Lack of tenure security for resident farm workers
- Poor working relations between the managers and the shareholders and
- A “Free-rider” syndrome – shareholders (farm workers) who are not working on the farm but wanting/receiving dividends.
On 14 November 2010 the department convened a FES review workshop, with the specific objective of getting firsthand experience from farm worker equity scheme beneficiaries with regard to FES and recommendations in respect of these challenges. This workshop recommended that a clear blueprint be defined on what FES wants to achieve. In this regards a Task Team, comprising of representatives from farm worker share equity scheme partners and commercial farmers was formed to work on terms of reference for this work to be undertaken.
Yesterday’s workshop was to get feedback from the District, Provincial and National Councils of Stakeholders, as mandated, regarding whether or not the department should lift the moratorium on FES, and if so, under what conditions. The workshop has agreed on the following and recommended that the department should lift the moratorium, subject to the following conditions:
- There should be clear criteria for project and beneficiary selection
- Success and sustainability of projects should be clearly defined
- Training in both technical as well aspersonal and management skills as a joint effort between government and farmers should be undertaken
- Funding and the role of the state should be clarified within a partnership arrangement with Land Bank, IDC and the Land Reform Credit Facility (Khula) and others
- Councils of Stakeholders should be convened to facilitate participation of other state departments suchasAgriculture, Forestry and Fisheries, Economic Development and Water Affairs
- A working group, consisting of commercial farmers, farm worker share equity scheme partners be established to do further work on the best model to provide farm worker tenure security and human settlement
- The terminology used to describe these schemes must be de-racialised
- Involvement of all partners in the business as equal share holders
- Benefits derived from the farming business to be distributed proportionally amongst all shareholders in relation to inputs and
- The motive of all partners must be clear before going into business.
I believe that these conditions will achieve our principles of the de-racialisation of the rural economy, equitable allocation and use of land across gender, race and class, and production discipline for national food security.
The department has therefore agreed to lift the moratorium Farm Equity Schemes subject to the conditions mentioned above.
With regards to the existing Farm Equity Schemes, the workshop agreed that each scheme must be reviewed and assessed on its merit by the department before any funding is released.
Joint media statement by the Department of Rural Development and Land Reform, Farm worker Equity Shareholders and the commercial farmers.
Inquiries:
Mr Eddie Mohoebi
Cell: 082 550 1445
