Income soars, but farms are fewer – Statistics SA

South Africa’s Gross Farming Income (GFI) has increased from R53,3 billion in 2002 to R79,5 billion in 2007, representing an annual growth rate of 8,3% since 2002. So said Statistics South Africa in its commercial agricultural report, recently released in Pretoria.
Statistics SA manager of agricultural statistics Moses Mnyaka said the main agricultural income stream was animal and animal product sales, which contributed to roughly 55% of total GFI.
Horticultural crops were the second largest contributor, making up about 24% of the GFI, followed by field crop products at 20%, and other agricultural income at only 1%.
Excluding salaries and wages, the leading expenditure items were animal feed at 19%, and fuel and fertiliser at 8% each. Depreciation made up 7% of costs.
While farming income had increased, the number of farming units in the country had decreased. “Of 45 818 farming units recorded in the 2002 census, only 39 982 were recorded in the 2007 census, indicating a 12,7% decline,” said Mnyaka.
The census revealed the number of agricultural employees has declined significantly, dropping 15,9% since 2002.
Mnyaka said the land-reform process has pushed up land prices and housing. The market value of farming assets had soared by 81,5% from R98,4 billion in 2002 to R178,6 billion in 2007.
“On the other hand,” he added, “Farming debt increased by over 20,1% from R30,9 billion in 2002 to R37,1 billion in 2007.”
Mnyaka said farmers’ loss of income due to crime and disaster had amounted to R2,3 billion in 2007.
“The major cause of financial loss was the loss of livestock to predators and theft. Other losses were to veld fire and natural disaster,” he explained.
Mnyaka said it’s important to bear in mind the census is incomplete as it doesn’t cover information on subsistence farming, former homelands and land-reform beneficiaries. – Peter Mashala