Since South African agriculture converted from control boards to the free market system in the 1990s, farmers have had to learn how to contend with extreme volatility on commodity markets. According to Silotrat’s Werner Rossouw, hedging is a valuable tool that maize farmers can use to reduce the risk of fluctuating prices. However, in order to benefit from the system, they must learn the rules of the game.
South Africa’s food poverty line, also known as the extreme poverty line, which refers to the amount of money that an individual will need to afford the minimum required daily energy intake, has increased from R547 (figures adjusted for inflation) in 2018 to R561 this year.
Obtaining environmental authorisation with the help of technical consultants prior to expanding farming operations on virgin soil will help farmers avoid prosecution that could lead to hefty fines or even jail time, writes James Brand, a natural resources and environment senior associate at law firm ENSafrica.