Rural Development and Land Reform approves R204 million rands funding for emerging farmers

The Department of Rural Development and Land Reform, on 7 July 2015, approved multi-million rand funding for farmers to acquire land and kick start social and agricultural infrastructure upgrades on the allocated land.

Rural Development and Land Reform on Tuesday approved a total of 31 projects to the value of approximately R146-million for farm recapitalisation.

A total of 7875, 2136 hectares were acquired across all nine provinces under the Proactive Land Acquisition Strategy (PLAS). This development was expected to benefit 5108 applicants. A further amount of R58-million was spent on 13 land acquisitions. 

It is estimated that 2193 permanent jobs would be created out of the farm recapitalisation funding with a further 639 temporal employment likely to be created.  

“This will go a long way towards fast tracking service delivery in rural areas. We are committed to sustainable agrarian reform with a thriving farming sector,” said Rural Development and Land Reform Minister Gugile Nkwinti in Pretoria today.

The department acquires farms through Proactive Land Acquisition Strategy (PLAS), which seeks to acquire strategically located land and redistribute this to emerging farmers; the acquisitions approved will contribute towards achieving the development goals as espoused in the National Development Plan.

The applications indicated that most emerging farmers wanted to pursue livestock farming, crops, vegetables, game, and poultry. Funding applications were also used to purchase machinery, trucks, bulls, pregnant heifers, and pack houses among other things.

The department’s National Land Allocation and Recapitalisation Control Committee (NLARCC), which is chaired by Deputy Minister Mcebisi Skwatsha processes applications before they are brought to the Minister for approval.

“Some of the commodities that people apply to produce are for niche markets. We want to give people a chance who can create jobs and farm effectively. We do not want weekend farmers, they neglect farms,” said Minister Nkwinti.

Once an application for recapitalisation or land allocation is received, a rigorous evaluation process from a province is undertaken, then NLARCC processes application, culminating with the minister’s final ratification. It is standard that the applicants submit business plans which guides the way forward in terms of production and infrastructure development of farms, in some cases emerging farmers are linked to experienced strategic partners who assist them with the skills required. A farmer or beneficiaries can apply as individuals or as a group.

The department facilitates that farm beneficiaries get strategic partners – who tend to be experienced commercial farmers.

The department works closely with the Department of Agriculture, Forestry, and Fisheries (DAFF) to ensure that new farmers had access to extension officers who facilitate the transfer of new farming methods and provide technical advice. Sister Departments such as Water and Sanitation, as well as the Land Bank participate in the screening process of applications when they serve before the NLARC; this demonstrates the ability to assess application within a co-ordinated and co-operative manner.

“This programme allows us to ensure that we rekindle the class of black commercial farmers that was disrupted by the 1913 Natives Land Act,” said Minister Nkwinti.

“We are delighted that some major commercial farmers are making offer to us first as the department. They sell to us and keep a marginal equity and they transfer key to our people,” said the Minister. 

STATS

In the last 21 years, the department has redistributed 82 million hectares of white owned agricultural land, benefiting 235 609. A total of 50 882 beneficiaries are women, 33 108 are youth, and 678 are disabled people.

In the last five years, the Department of Rural Development and Land Reform (DRDLR) under the land redistribution programme acquired 1 488 241 ha through 1 467 projects, benefiting 20 001 beneficiaries of which 8 297 are women, 6 149 are youth and 49 are people with disability.

Before this latest approval, the department has Recapitalised 1 459 projects (farms) on land totalling approximately 1, 4 million hectares.

“We have spent close to R1-billion (R995 379 034) on recapitalisation through grants and proactive land acquisition strategy (PLAS),” said Minister Nkwinti.

Enquiries:
Mr Sivuyile Mangxamba
(Acting) Chief Director: Strategic Communication
Department of Rural Development and Land Reform
Tel: 012 312 8881
Cell: 071 334 2915

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