Revitalising Agriculture and the Agro-processing value chain

This is the action plan for the 2015/16 financial year, to speed up land reform and stimulating the rural economy.

Minister of Rural Development and Land Reform Gugile Nkwinti outlined the paln at a media briefing of the Economic Sector, Employment and Infrastructure Development Cluster on 24 February 2015.

The following are key elements of the plan:

  • Future ownership of agricultural land by foreign nationals will be prohibited. However, Foreign Nationals will be eligible to long term leasehold of a minimum of 30 years. This policy does not apply to residential property.
  • A maximum ceiling of 12 000 hectares on agricultural land will apply to all legal and natural persons.
  • With regard to the two policy measures mentioned above, `The Regulation of Land Holdings Bill’ (RLHB) should be processed through Parliament and signed into law this year.
  • The 50/50 Policy Framework will be implemented immediately. Government has received a number of proposals from commercial farmers; and, will pilot at least 50 projects during this term.
  • To revitalise agriculture, government will progressively establish Agri-Parks in all 53 District Municipalities. However, during the 2015/16 financial year, government will prioritise the 27 poorest District Municipalities. These will be fully fledged agro-hubs that will offer all services along the various commodity value chains. This ‘One District, One Agri-Park’ and ‘Every Municipality a CRDP Site’ approach will include the selection and training of Smallholder Farmers, in partnering with the District Land Reform Committees. R2 billion has been set aside to implement this Programme in the coming financial year (2015/16). An Interdepartmental Task Team, involving organised agriculture is already working on plans to implement the Programme.
  • The government will construct 50 dip-tanks in communal areas across the country during this term; well-trained and well-equipped staff of extension support practitioners will be appropriately placed; and, 1 million hectares of under-utilised land in communal areas and land reform farms will be brought into production. It is estimated that the 238 000 hectares set aside for soybean production will create about 14,000 jobs; and, the 61 000 hectares earmarked for wheat will create about 8 000 jobs.
  • The government will, this year, implement a 30% local procurement programme; fast-track the provision of ‘set-asides’ for strategic agricultural commodities; and, develop a robust import- replacement strategy.

By 28 October 2015, Minister Nkwinti coiuld report taht progress has been made in revitalising agriculture, the agro-processing value chain and land reform.

  • The Agricultural Policy Action Plan has been reviewed to ensure that it becomes a job driver and promotes growth, employment, rural incomes, investment, output, export and African regional development.
  • Work is continuing in the development of 44 Agri-Parks across the nine provinces. One Agri-Park is ready to be launched in North West. Production plans have been developed and are being implemented across the country to ensure increased production in the areas supporting the Agri-Parks. The DST is busy with a feasibility study on agro-innovation hubs that will support the development and dissemination of appropriate technologies to be implemented in Agri-Parks.
  • A total of 12 221 smallholder producers were supported through advisory services, training, technical support and infrastructure from April to June 2015. In addition, 36 additional farms are being supported under the Recapitalisation and Development Programme.
  • The DST is in the process of establishing a wheat-breeding platform to support the development and commercialisation of new breeding technologies for emerging and commercial farmers. Five new cultivars will be produced by 2020 to support increased productivity and food security. The DST also supports the Eucalyptus Genome Project, a local platform for tree genomics research in South Africa. This project focuses on the identification of desirable traits which speed up and allow for more accurate breeding. The project has the potential to increase industry competitiveness based on improved physical and chemical properties of wood and improved disease resistance to support the forest, pulp and paper industry, thus grow the economy and create employment opportunities.
  • The Recommissioning Strategy for the Western Cape forestry exit areas has been approved to put about 22 000 hectares (ha) of state forestry land back into commercial forestry operation. The resultant benefits range from job creation, local economic development and future improvement in timber supply.
  • According to the LHA study that was commissioned by the Department of Agriculture, Forestry and Fisheries and the Independent Development Corporation, the recommissioning of Western Cape plantations will employ 350 full-time workers for the five-year period. This number will increase to 1 500 when the plantations are in full production.
  • In an effort to enhance the competitiveness of the agricultural sector through research, development and innovation, government – together with the private sector – have invested R104 058 468.78 million to implement innovation programmes for the fresh produce, aquaculture, wine, citrus and forestry sectors.
  • To increase the amount of land under irrigation, a total of 74.6 ha were revitalised during the first quarter of the current financial year and five water-use authorisation licences were issued to previously disadvantaged individuals, amounting to 3.79 million m3 volume of water that will be used for irrigation. Some 15 resource-poor farmers were supported to access water for production.
  • As at 30 June 2015 the Commission on Restitution of Land Rights had settled over 78 138 land claims, which benefitted more than 1,9 million individuals from 385 691 families have benefitted from an award of 3 231 787 hectares of land acquired at the cost of R18.7 billion.  Some beneficiaries opt for financial compensation, to date the Commission has paid over R9.1 billion. An additional R4.1 billion has been awarded to beneficiaries that have opted for land as development assistance.

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