The organisation believes we should revisit Mandela’s examples for land reform to succeed. The Land Act of 1913 and the subsequent rule of apartheid – an abomination – denied the majority of South Africans a stake in the agricultural sector. It robbed them of their dignity as well as the right to own land, which deepened the poverty that prevails today. However, pronouncements made by politicians over-simplify the reasons that land reform was, and still is, a dismal failure.
The Constitution and current landowners are blamed, and this detracts from the true reasons for the failure of land reform. We need to return to the inclusive premise that was handed down by Nelson Mandela, who set the example of an inclusive process that citizens of all professions should re-implement. For only by a deepening of co-operation will we reach the necessary success rate. We also have to address the levels of corruption in our society that are undermining the success, and sustainability of our economy.
A serious warning
In this summer grain production year, South Africa’s food security was balanced on a knife’s edge, and Grain SA would like to seriously warn civil society about the vulnerability of our food security. A single weather phenomenon, where a cyclone developed over the Indian Ocean and pushed the low pressure cell further to the west, resulted in abundant precipitation that saved our food security.
READ MORE: No expropriation without compensation – Zokwana
If that weather phenomenon had not developed, drought would have destroyed the crops, which were already stressed. Is it not apt that in January 2014 we exported 250 000t of maize to the Zimbabwean people to stave off hunger? Food security is not a right but a privilege, enjoyed by all South Africans and it should be coveted as a national asset.
The time has come for South Africans to unite and co-operate on food security. Our inability to do so will destroy the fabric of our society, for hungry people are ungovernable. Food imports, moreover, will exacerbate the trade deficit, which we can ill afford.
The dialogue between all interested parties must start in earnest, for there will come a time where the weather will dictate that we cannot produce enough food for ourselves, and it will have a direct bearing on its availability. Grain SA appeals to all South Africans to close ranks in order to deal with the challenges that face us, and in doing so, uphold the letter and spirit of our Constitution.
Grain SA is a willing participant in the negotiations via Afasa and Agri SA. Now that the debate has moved to the media, we would like to provide our viewpoint and a more realistic outlook from our experience.
The 50:50 proposal
We would like to state clearly that we do not support the proposal of Minister Gugile Nkwinti to give 50% of each farm to the workers without compensation to the current owners. Such a decision would not only put food security at risk, but lead to massive price increases, higher inflation, an increase in interest rates and eventually manifest in slower economic growth.
Slower economic growth will put more people out of jobs and poverty will become a stark reality for many. South Africa can ill-afford to destroy wealth by irresponsible government intervention in a free-market system that, in actual fact, has produced cheap food and fibre for consumption of its people.
The recent mine strike was a clear indicator of what would happen if farmers were not allowed to exercise their constitutional right to produce food in a free market environment. In this case, it will last much longer and could lead to anarchy, as seen in North Africa and the Middle East in 2008. It all started with food prices and shortages.
Grain crop production is financed by the commercial banks and agribusinesses, and the land is used as collateral to secure the necessary funds to procure seed, fertiliser, chemicals and diesel. Without title deeds, there is no finance and without finance, no production.
The greatest impediment for black grain farmers is access to finance, by virtue of the fact that they do not hold the title deed of the land; most of the land belongs to the state. Affording farmers title enables them to acquire financing from commercial banks and agribusinesses.
The minister’s implementation proposal will logically reduce the hectares under crop production by at least 50%, which could curtail the production capacity with immediate effect. By implication, shortages and massive price increases will be the order of the day. Prices will increase by virtue of international price determination, from export to import parity.
The maize price will logically increase by approximately R1 400/t (70%) and accelerate by the demand exceeding the supply. This will raise general inflation above the Reserve Bank’s targets. South African ports are not geared to import huge quantities of grain, and food shortages will become a reality.
READ MORE: Accelerated land reform in the wildlife ranching industry
It has also been shown throughout the world that food shortages can create political instability, which South Africa can ill-afford. Enough research has been conducted to indicate a strong correlation between food shortages, high food prices and anarchy. This could surely not be on the minister’s mind! Every political imperative has its consequences, and these are certainly not the desired outcomes of our Constitution and Freedom Charter.
We should give careful consideration to the fact that these socio-economic consequences would be experienced by all, especially the poor, who spend a higher percentage of their income on food than other income groups. This is not a wage negotiation! We are dealing with the future sustenance of our nation.
Grain SA supports land reform in a way that maintains food security as well as political stability. A totally unrealistic proposal such as this would further complicate these imperatives and lead to racial polarisation rather than the aforesaid aim of deracialising the rural communities and economies. It would also lead to a deepening of the poverty currently experienced by so many South Africans.
Trade union-style tactics and constant farmer- bashing are outdated in a liberal constitutional democratic dispensation, and in our fledgling democracy of 20 years. Sustainable land reform is an imperative and we support food security as an equally important imperative, which both are of cardinal importance if we, as responsible South Africans, would like to see poverty alleviation as the logical consequence of these actions.
Grain SA, with the financial support of the maize and other grain trusts, has been actively transforming the grain sector for more than 10 years. More than 200 black commercial farmers are now in a position to produce agricultural grain commodities economically and sustainably. The training of almost 700 farm workers this year has enabled them to become more economically sustainable.
We have enhanced their capacity to address household food security. In many cases, they have a surplus to sell profitably into the market place.
Wages
The membership of black farmers has grown to more than 4 000 and has exceeded the number of white members. We need to finance those who work the communal and state-owned land, who do not have collateral, by virtue of the fact that they do not receive the title deeds of the land they work.
We have been successful in establishing many commercial black farmers and were crestfallen when government scaled down the recapitalisation programme. Whilst the wages of farm workers are in the media, we confirm that Grain SA pays our workers at the Nampo farm R3 189 per month each, plus a 13th cheque.
Currently, we have nine regional offices in grain production areas focusing on rendering extension services and training black farmers. We fail to understand why this programme of highly successful assistance in maintaining food security and supporting land reform is not regarded by government as important and an integral part of successful land reform.
Its speed is limited by the lack of trust, funds and title deeds to new farmers. Once the title deed is issued, the market will perform its work and production will take place in this enabled environment.
Grain SA is not just debating land reform, we are practising it successfully. We are delivering the very result that government and civil society desires: successful black farmers as well as food security. Disregarding the property rights of individuals will have major implications for the entire economy. Every seed planted by a farmer is an investment against poverty.
We believe in South Africa, and are keen to see it prosper, and our children secure and well-nourished.This is what we want to achieve and would like to contribute towards this dream.
Now let us all make it happen.
Issued by Grain SA communications 27 June 2014.
Phone Jannie de Villiers on 086 004 7246.
The views expressed in our weekly opinion piece do not necessarily reflect those of Farmer’s Weekly.
