Agri SA executive director Christo van der Rheede calls on finance minister Enoch Godongwana to consider additional rebates on petrol and diesel for farmers who “play an instrumental role in ensuring food security for all of our people.”
In a letter written to Godongwana and acting director-general Ismail Momoniat, Van der Rheede also proposes a reduction in Eskom line costs along with tax relief measures for farmers who are investing in their own security measures.
Van der Rheede furthermore describe South Africa’s continued power cuts as a “load shedding morass” that seems to be worsening. “It appears that load shedding will remain with us for an undetermined time still to come,” he says. “The agricultural community is becoming more and more reliant on themselves to generate enough electricity for agricultural purposes.”
Sky-high diesel and petrol prices have therefore become “a tremendous financial burden,” says Van der Rheede.
“These additional energy costs and other costs are now becoming untenable for the farming sector and seriously affecting its continued viability, let alone its international competitiveness.
“Given that we are a primary economic sector, that food security is a national imperative, and that agriculture is an important economic driver, Agri SA appeals to Treasury and our government to consider providing relief from the ever-increasing energy costs impacting on the sector.”
Since 2015, the cost of diesel has increased by up to 170%, says Van der Rheede.
“Add to it the massive increase in shipping, packaging and fertiliser costs. The sustainability of the agricultural sector is currently seriously challenged. Shipping cost per container has increased from R17 000 in 2017 to between R150 000 to R170 000. Fertiliser cost has also increased in some instances to between 100 to 150%,” he says.
Meanwhile, farmers across the country are also struggling crime as well as a series of natural disasters caused by hail, flooding, fires, drought, animal and plant diseases, as well as locust outbreaks.
“Agri SA would like to also meet with the minister of finance and the leadership of Treasury early in the New Year to engage on these and other requests,” says Van der Rheede.
His request follows an earlier report by Food For Mzansi in which Eastern Cape farmer Sinelizwi Fakade laments the impact of load shedding on the agricultural sector.
Fakade calls on the recently elected ANC leadership to create a conducive environment for farmers to be able to create jobs.
“As a young person in farming, it is our time to thrive, but we will not be able to thrive when the environment is not friendly enough. We want to see this new leadership shutting down load shedding because it is impacting farmers. Now is the time to knuckle things down and get our economy moving,” he says.
