Role players hope to see government support agri sector in Budget Speech

Agri SA said it was crucial that the Minister announced measures to protect the country’s food security. With load-shedding the most urgent threat to the nation’s farmers, government needed to be resolute in allocating resources to buttress farmers from its worst effects and ensure the sustainable production of food.

Kulani Siweya, chief economist at Agri SA, said in a statement that the country’s producers needed concrete and practical budgetary and fiscal measures to assist them in their plight.

This included the provision for higher rebates on diesel and petrol used for electricity generation and the implementation of incentives to promote grid-connected generation capacity and reconnection of off-grid systems. He also called for lowering or removal of “cumbersome” taxes, such as excise duties on alcohol.

“Moreover, with President [Cyril Ramaphosa] having announced a tax incentive for businesses to install rooftop solar [panels], Godongwana needs to provide detail on this intervention and any special provisions for the agriculture sector. The Budget Speech must also provide for the allocation of resources to build new infrastructure and repair existing infrastructure to enable the sector and value chain partners to reliably supply food across the country,” Siweya added.

Meanwhile, Prof Piet Croucamp of North-West University’s Business School said that as South Africa’s agriculture sector was mostly export-driven, it was important that government removed barriers in this regard.

“It is of the utmost importance for the Minister to support the industry through, among others, lessening taxes on exports, marketing and promoting local agricultural products on global markets and budgeting amply for the rehabilitation and extension of infrastructure. That is what the industry would want him to announce on Wednesday. More support from the state is crucial for long-term sustainability and profitability in agriculture,” he told Farmer’s Weekly.

“Although it does not always look like it, government is well aware of the value the sector adds to the country and its people. My hope is that this awareness be reflected in increased support for agriculture in the 2023 Budget Speech,” he added.