Attorney Pearl Gibbs unpacks the legal traps threatening South Africa’s next generation of farmers in this episode of the Farmer Mentor series.
A new generation of farmers is emerging. They are young, driven, and often breaking into agriculture without the safety net of generational wealth. These new-era farmers, while innovative and resilient, step into an industry often riddled with legal complications.
To better understand the legal pitfalls facing these farmers and how to overcome them, Food For Mzansi sat down with Pearl Gibbs, an attorney, conveyancer, and notary public.
Gibbs has seen and heard it all. Deals being made with a handshake, land cultivated without a title deed, and agreements being verbal rather than written.
This informal approach, while rooted in trust and tradition, leaves new farmers vulnerable in a system that increasingly demands legal certainty, Gibbs shares.
For many new farmers, the problem starts right there. They lease land without contracts, hire workers without formal employment agreements, and share equipment on informal terms.
“That’s where the problem begins. We often don’t start with a solid legal foundation. We don’t always ensure our work aligns with the legal framework, and that oversight can lead to serious issues,” warns Gibbs.
This lack of structure becomes a legal weak point, especially when disputes arise or when dealing with larger, more established businesses.
Contracts that protect
It’s not just informal contracts that hurt new-era farmers, it’s also the power imbalance when entering into agreements with buyers and suppliers.
“You need to know your rights,” Gibbs emphasises. “If you’re negotiating from a point of your entitlements and your rights in terms of law, then you have the upper hand.”
Before entering into any contract, whether with an abattoir, a retailer, or a state grant body, Gibbs advises farmers to be clear on what they are offering, the terms they want, and their legal grounds. This means understanding the value of their product, being specific about expectations, and referencing applicable laws and regulations to back their position.
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Furthermore, Gibbs warns farmers against generic contracts. Instead, they should be designed to anticipate common problems and offer practical remedies.
“For example, if you breach the contract, I’m required to give you notice within seven days. If you don’t comply, you must return what I’ve provided. So when we go to court, we’re not arguing over whether you need to return it – it’s clear. The breach happened, and the terms are straightforward.”
Non-performance clauses are just as vital. These define what happens if the other party simply disappears or refuses to fulfil their part of the deal. These preventative legal measures often save more time, money, and stress than people realise, she explains.
Building a legal foundation from day one
The most powerful advice Gibbs offers is to build legal compliance into your business model from the very beginning.
This starts with the land. Farmers must decide whether they intend to own it or lease it. If ownership is the goal, the land must be bought and registered properly at the deeds office. If leasing, the agreement must comply with all relevant land-use laws, she says.
In cases where partnerships are involved, a memorandum of understanding (MoU) or joint venture agreement should be signed.
She also warns against informal arrangements with neighbours, such as grazing cattle on another’s land or using their water access.
“You can take your cattle there to drink water from his land. Now, you would not have an informal agreement with this person. You would rather register servitude over his property to ensure that he cannot maybe deny you access to the premises or deny your cattle access.”
What about if cattle grazing on another’s pasture fall ill due to poisoned grass – who is liable? These aren’t far-fetched scenarios, and Gibbs says they happen often, and without legal planning, they can destroy a farm overnight.
Whether it is securing land, formalising partnerships, or navigating complex contracts, new-era farmers must embrace the law as a core tool of their trade.
As Gibbs says, “You need to build from a point of knowledge. You need to know what you want and incorporate your plan into legislation.”
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