Grain SA, Oos Vrystaat Kaap Operations Ltd (OVK) and the Free State Department of Agriculture have undertaken to work together in an initiative to support developing farmers who aim to become commercial farmers. OVK’s BEE manager, Deon van der Ross, said that six developing farmers in the province had been identified for assistance over the next three years. The participants are all from the Ladybrand (Hobhouse and Marseilles areas), Ficksburg, Fouriesburg and the Paul Roux districts.
“We have set ourselves the task of ensuring that these farmers have reached the status of commercial farmers in a three-year period,” he said. Ross added that it makes sound business sense for OVK to participate in the initiative, as there are large numbers of developing farmers in the Free State and their financial wellbeing will benefit agriculture as a whole. “The successful development of so-called emerging farmers is an imperative not only for agriculture, but for the South African economy as a whole,” he concluded.
Isaac Khuto of Alteia farms near Ficksburg, who has been selected to participate in the project said, “The support will definitely help us to be independent soon.” He said the OVK training course he had attended had been helpful. “I’m now very aware of mistakes in the production processand can avoid them in advance,” he added. Khuto had just harvested a very good wheat crop and the young maize plants on his land look promising.
Financial support
The Department of Agriculture is providing the six farmers with financial assistance for seed, fertiliser, herbicides and pesticides, over the three-year period. The basis for support will be a subsidy of 50% in the first year, 30% in the second year and 15% in the third year. OVK is providing about R600 000 production credit for the balance of the input requirements. Grain SA general manager Dr Kobus Laubscher said that the input costs outlay had been insured.
Debt accounts, with favourable interest rates, have been created for each of the participants. The farmers will be required to start settling accounts after harvesting when profits are shown.
“Monsanto is also part of the program and will provide seed at a discount,” explained Dr Laubscher. “They’ve indicated a willingness to carry a portion of the risks not covered by input insurance.” Indications are that excellent maize and sunflower harvests can be expected from the 260ha planted to crops. The plantings were completed in the period from about the last week of November to the middle of December. – Annelie Coleman
Issue date: 25 January 2008
