According to minister Shiri, the private sector would take over the responsibility of lending to farmers from the formerly state-led Special Maize Programme for Import Substitution, more commonly known as Command Agriculture.
This financing model, which was implemented in 2016, aimed to boost the maize output of farmers who had access to functioning irrigation facilities and reliable water supply on their farms. Support was offered to farmers as government’s response to the drought that left 2,8 million people food insecure during the 2015/16 season.
Among other inputs, government-provided farmers with seed maize, fertiliser, chemicals and technical support, with the contracted growers bound to deliver 5 tons/ha to the Grain Marketing Board as repayment. They were free to keep any surplus or sell it elsewhere.
Farmers found the lending terms favourable, so they stampeded for contracts. Some 2 000 farmers signed up in the first season; they harvested 2,1 million tons of maize, exceeding the national requirement of the staple. This initial success motivated government to extend the facility to the production of wheat, soya, fish and livestock in 2017.
Rethinking the finance model
Since then a combination of factors, such as adverse weather, abuse of inputs, delinquent lending practices, pressure on the lean fiscus and outright corruption has marred the lending facility, forcing the shift that occurred in September 2019.
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Hauling In A Full Net: Reaping The Benefits Of Processed Fish
As local and global governments deal with the full impact of the COVID-19 pandemic, producers are now more than ever searching for new options for expanding their businesses. That said, farming and value addition to produce does not have to be limited to landlocked food sources.
Grow Produce Year-round With Tunnels And Greenhouses
Climate change is an inescapable reality and can wreak havoc in open-field production systems that rely on the right weather patterns to produce good yields. For this reason, many producers worldwide have turned to growing crops in tunnels or greenhouses. These production systems offer protection from changing weather patterns, allowing them to grow crops throughout the year.
Saving Soil: Harnessing The Microbiome
We live in unprecedented times.
Summer Grain Production: A Producer's Perspective
The 2020 planting season for producers in the summer rainfall areas is here and most of them are looking forward to the first summer rains so that they can plant their crops. FarmBiz spoke to Jaco Minnaar from the farm Uitsny near Henneman about the new season. Jaco is vice-chairperson of Agri SA and currently serves on the Senwes board.
Electronic Auctions: The New Normal?
The South African livestock industry has suffered a tremendous setback with challenges posed to physical auctions. However, the industry is nothing if not resilient. The first ban on livestock auctions was imposed during the outbreak of foot-and-mouth disease (FMD) in 2019.
Oxygen Types That Damage Crops In Extreme Weather Conditions
Oxygen is best known as a life-giving gas without which life as we know it, would not be possible.
Asia's Maize Imports Likely To Grow
In 2019, the Asian maize market was finally on the rise to reach US$204,4 billion after two years of decline. The total consumption indicated buoyant growth from 2009 to 2019. Its value increased at an average annual rate of 5,1% over the last decade.
Cultivated grazing: Fertiliser is the key to success
Nowadays everything in agriculture has to be done on a larger scale. Cultivated grazing has also become a science, with producers forced to think bigger to get more out of their grazing – all at the most economical cost.
Industry Giants Comment On Special Adjustment Budget
Prof Johan Willemse, an independent agricultural economist, says the supplementary budget delivered by the minister of finance on 24 June was a real shocker. According to him, the government is spending an additional R145 billion on the COVID-19 issue. The real issue, however, is a record budget shortfall due to the economic meltdown, with wrong policy choices and corruption on the cards.
Rethinking The Conversion Process Of Poultry Litter To Biogas
The poultry industry is generally comprised of broiler chicken production, egg production, day-old chick suppliers and other poultry. While micro-enterprise businesses are gaining prominence as a means to address the challenges of job creation, economic growth and equity, the industry has future challenges concerning poultry litter management.
