How To Create Successful, Commercial Black Farmers

Many in the agriculture sector believe that government’s efforts to develop successful black farmers since 1994 have largely failed. Frans Cronje, CEO of the South African Institute of Race Relations, says this is because government spending is incorrectly prioritised, and that not nearly enough is being spent on farmer development.

If government really wanted to establish black commercial farmers,the following describes what it would do. Together with my colleagues, who deal with agriculture and land reform, I did some sums around livestock farming. We estimate that good-quality grazing land can be bought for R10 000/ha. To purchase a 1 000ha farm for a young, upcoming farmer would cost R10 million. We further estimate that to stock that farm with 200 in-calf cows would cost about R4 million.

A further R2,5 million would then be needed to provide the farmer with a new bakkie, tractor, trailer and implements. He or she could then be given R3,5 million in cash as working capital.

The whole investment would come to R20 million, and would create a debt-free commercial farmer, generating a positive cash flow of about R1 million/year and with more than sufficient collateral to buy more land and expand his/her farming enterprise.

Surely this is the ideal that the advocates and champions of land reform in South Africa should be aspiring to?

GOVERNMENT IS TALKING NONSENSE

But government policy is not to do this. The policy of the government is to confiscate land from successful producers and lease it to emerging producers, who have no collateral and no capital.