It is essential for the future of South Africa’s agricultural sector that we create realistic and actionable pathways for more and more black South African farmers to become sustainable commercial entities, writes Lukhanyo Nkombisa, general manager for the Citrus Growers Association Grower Development Company.
The recent budget speech by the minister of agriculture, John Steenhuisen, signalled a critical opportunity to reshape the trajectory of South Africa’s agricultural sector.
He said, “We must empower new-entrant farmers to become self-sustainable and productive as quickly as possible.” The CGA Grower Development Company fully supports this.
Central to the revitalisation should be a profound shift in focus towards cooperation and coordination. Achieving transformation necessitates a multi-faceted approach that encompasses land reform, access to finance, access to resources like water rights, skills development, access to working infrastructure, and links to markets.
Work together to support farmers
The fragmented nature of farmer support initiatives represents a significant challenge. Currently, various grower organisations and government departments on national and provincial levels have distinct interventions to assist farmers.
However, a lack of coordination and alignment has hindered their effectiveness in some cases. A practical solution to this would be to establish a comprehensive farmer support system, where all stakeholders – government, commercial and organised agriculture, and private institutions like banks – work together to achieve transformation goals.
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This system should be underpinned by clear and measurable targets. The department of agriculture must set ambitious yet achievable goals for the next five years, with annual targets to track progress. A key metric should be the number of black producers successfully commercialised.
Minister Steenhuisen will have to coordinate with relevant national departments, such as the department of trade, industry, and competition, the department of water and sanitation, the department of land reform and rural development, as well as financial institutions like the Land Bank and commercial banks and small business and development.
Address diverse needs differently
It is crucial to recognise the diverse needs of farmers, ranging from small-scale producers to commercial enterprises. As such, a survey or database should be created that classes growers into various categories, based on their size and needs. Programmes and support mechanisms must be tailored to address the different challenges faced by each category. This could include providing access to markets, helping with accreditation, and financial resources.
The funding mechanism for black farmers should be nuanced. New and small-scale farmers might not be able to achieve their goals without government or industry grants. But as farmers grow in size, skill, and business acumen, their funding requirements change. Careful thought should be given to when to allocate zero-rated loans, project-specific grants, preferential pricing, or a combination of these.
To achieve a practical and achievable transformation plan, a strong partnership between the government and the agricultural industry is essential. The knowledge and experience to achieve this already exist in the industry.
At the CGA Grower Development Company, we have a track record of working on farming extension programmes, on business development for farmers, on market readiness and access and collaboration with various funding institutions. We understand our farmers and their needs.
- Lukhanyo Nkombisa is the general manager for the Citrus Growers Association Grower Development Company. The views and opinions expressed in this article are those of the author and do not necessarily reflect the views or positions of Food For Mzansi.
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