Grain SA helps spend recapitalisation budget

Grain SA (GSA) has spent nearly R29 million of the Department of Rural Development and Land Reform’s R36 million recapitalisation programme earmarked for 186 black farmers in the Free State.

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This is according to GSA’s farmer development manager Jane MacPherson. She said that an additional R30 million has also been made available for black farmers in North West. The department requested GSA’s involvement in farmer development and the R36 million was made available to GSA in September 2011.

GSA assisted the farmers to use the grant to repair existing tractors and equipment, the purchase of new or used equipment, production inputs for various crops, purchases of livestock and expenditure on infrastructure. “We devised a system whereby the farmer and his mentor have to make out an order for every purchase, and quotations for expenditures have to accompany each order. The payments are then made electronically from our offices in Bothaville,” MacPherson explained.

GSA started with the programme in October last year. This has called for the prioritisation of the expenses. MacPherson said it is important to get the necessary tractors and equipment in good working order and then to provide for the input costs for the 2011/2012 grain production season. Once the crops have been planted, the focus will move to other areas such as livestock and infrastructure.

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MacPherson said efforts to access production finance from the Department of Agriculture, Forestry and Fisheries have borne little fruit over the years. “Just as we were losing hope, officials from the Department of Rural Development and Land Reform approached us with the idea of a recapitalisation programme.” She said that it has always been Grain SA’s belief not to make decisions for farmers or farm for them.

“Our programmes are designed to empower and develop farmers and we intend to do the same with this recapitalisation programme.” GSA identified five retired commercial farmers as mentors to the beneficiaries of the recap programme. Farmers who’d like to benefit from this programme can contact Grain SA.