Land ownership cap surprise

The Minister of Rural Development and Land Reform Gugile Nkwinti announced during his budget speech that government plans to halve its 12 000ha cap on land ownership.

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The result is that farmers won’t be allowed to own more than 5 000ha, unless the land is used for game farming, the generation of electricity or forestry – then a cap of 12 000ha will be applicable. Government plans to expropriate and redistribute any excess land portions between each of these categories. 

The announcement has taken agricultural organisations by surprise. Johannes Möller, president of Agri SA, said he was under the impression that government and the private sector were making strides in land reform negotiations, but the recent announcement proved the opposite.

It not only threatens the future sustainability of farms, but also lead to higher unemployment rates in rural areas.

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