Finance Minister Enoch Godongwana is set to deliver the 2025 Budget Speech on 19 February.
Doyer said he expected Godongwana to expand on the themes he highlighted in the medium-term budget policy statement to align with the sentiments expressed by President Cyril Ramaphosa in the recent the State of the Nation Address (SONA).
Doyer also said he hoped the budget would focus on economic growth, with a focus on infrastructure investment, industrial development, and job creation.
“While some of the statements that is expected may offer a sense of hope, the harsh reality is that the agriculture sector is often neglected when it comes to real benefits for farmers. These initiatives can stimulate the economy in the long run, but we need capacity building at government level to implement many of these initiatives.”
He added that he hoped Godongwana would announce sorghum as VAT-exempt going forward.
“We believe that by removing VAT on sorghum, consumers will directly benefit while it will also revitalise a struggling industry.”
As sorghum is taxed, it is less competitive than other staple grains. This price disparity directs price-sensitive consumers towards maize, suppressing the demand for sorghum, Doyer said.
Doyer said that investment into infrastructure, particularly that of energy, water and logistics, was also essential to grain farmers and the broader agriculture sector.
“Defaulting municipalities remain a drain on the fiscus, and our concern is that support to distressed municipalities in the form of debt relief to improve governance and their financial health redirects funds that could have been allocated to the improvement of infrastructure in especially the rural areas,” he said.
He added that water infrastructure was critical for all South Africans, whether living in cities or farms.
“It is important that government allocates enough funds and resources to supporting our water resources. Building new dams is a great initiative and welcomed by all, but it is equally important to focus on water quality, reduce pollution and increase efficiency in delivery systems.
“Concerns regarding the regulations and requirements regarding water-use licences on the agriculture and forestry sectors have been raised on numerous occasions, with the main focus on the impact that the process and the lack of resources to administer the process may have on the production capacity of farmers.”
