Don’t just give black farmers land, help them with funding too

Farmer Koos Mthimkhulu inspects his maize crop at his Free State farm. The writer says the greatest challenge to black farmers is to obtain financing. File Picture: Reuters

Farmer Koos Mthimkhulu inspects his maize crop at his Free State farm. The writer says the greatest challenge to black farmers is to obtain financing. File Picture: Reuters

Published Dec 23, 2020

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By Dr Theo De Jager

Minister Thoko Didiza’s decision to transfer more than 700 000 ha of farmland – in state ownership since 1994 – to beneficiaries of land reform is one of the wisest decisions ever made.

We, the Southern African Agri Initiative (Saai) family farmers’ organisation feel this decision should have been made 20 years ago.

Many Saai members in Mpumalanga, the Eastern Cape and Limpopo faced difficulties because of the department’s attempts to lease the properties – on which some farmers have been farming for a decade or longer. In the Eastern Cape the eviction of successful black farmers in favour of well-connected ANC cadres became front-page news.

Many black family farmers in Mpumalanga faced similar evictions and we were ready to defend them in court.

Corrupt officials expected some farmers to pay bribes to enjoy security of right of abode.

The greatest challenge to black farmers is to obtain financing. The state has, since 2007, failed to transfer title deeds to beneficiaries of the redistribution programme. Instead, farms that had been bought were leased to black farmers as state land. This soft form of nationalism prevented farmers from offering these farms as security to banks to obtain financing.

The Land Bank’s credit downgrade exacerbated the crisis. Hundreds of development projects that depend on the Land Bank are facing ruin over funding problems. The department proved repeatedly that the state is a poor alternative input financier, plunging more black farmers into serious financial problems rather than helping them. Giving title deeds to black family farmers brings about greater access to financing and an improved chance of wealth creation.

Dr Theo De Jager is the Chairperson of the Southern African Agri Initiative (SAAI).

The Star

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