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The Presidency wishes to state, for clarity and to aid the ongoing debate, that the proposals referred to by President Jacob Zuma in his address to the Association of Farmers of South Africa are contained in the country’s National Development Plan produced by the National Planning Commission in the Presidency, which was released in August this year.

The story put out by news wires omitted the source of the proposals. The Presidency welcomes the debate that has ensued over the proposals in the agriculture and land sectors as it enriches the discussions on this important topic.
The National Development Plan argues that agriculture is the primary economic activity in rural areas and has the potential to create close to one million new jobs by 2030. This can be done by expanding irrigated agriculture.
There is evidence that the current 1.5 million hectares under irrigation can be expanded by at least 500 000 hectares through more efficient use of existing water resources and the development of new water schemes.

Also the plan says we can bring under-used land in the communal areas and land reform projects into commercial production, and that we also need to develop strategies to support new farmers in collaboration with markets.
To make the most of the opportunities that exist we need to expand our water resources and irrigation infrastructure. We also need to invest in market linkages such as road and rail infrastructure, cold chain facilities and market information systems.  Critically, we need to find ways of providing tenure security for communal farmers, and investigate better ways of financing land reform so that new farmers do not become saddled with debt.

The plan proposes a district based approach to land reform and its financing. It proposes that each district should establish a district land reform committee where all stakeholders are involved.
This committee will be responsible for identifying 20 percent of the commercial agricultural land in the district and giving commercial farmers the option of assisting its transfer to black farmers.
The implementation of this land reform proposal would include the following steps:
Firstly, it will entail identifying land readily available from land already in the market; land where the farmer is under severe financial pressure; land held by an absentee landlord willing to exit; and land in a deceased estate. In this way, land can be found without distorting markets.

Secondly, after being identified, the land would be bought by the state at 50 percent of market value (which is closer to its fair productive value). The shortfall of the current owner will be made up by cash or in-kind contributions from the commercial farmers in the district who volunteer to participate.
Thirdly in exchange, commercial farmers will be protected from losing their land and gain black economic empowerment status. This should remove the uncertainty and mistrust that surrounds land reform and the related loss of investor confidence.
Fourthly, a stepped up programme of financing should be created. This would include the involvement of the National Treasury, the Land Bank as well as established white farmers.
The model envisages that the cost of land reform be spread between all stakeholders. It also envisages new financial instruments being designed for the purpose of facilitating land reform. These could include 40-year mortgages at preferential rates for new entrants into the markets, as well as land bonds that white farmers and others could invest in.
“We truly welcome the fact that National Development Plan continues to generate debate which will take us to the type of prosperous society we are building. Since November last year, the commission embarked on an extensive public engagement process on the draft plan. They held hundreds of meetings in the most far-flung areas of the country, engaged with civil society, the labour movement and several business formations. They also engaged extensively with Parliament. In addition, they received over 500 written submissions from members of the public. This was one of the most extensive public consultation processes on public policy since the drafting of our Constitution,’’ said President Zuma.
The NDP covers thirteen areas including job creation, education, health, rural development, citizen safety, economic infrastructure, social protection and South Africa’s place in the region and the world.
Last month, the Cabinet Lekgotla welcomed the NDP and endorsed the objectives and the 18 key targets of attaining these. The Lekgotla also acknowledged the NDP as a strategic framework to form the basis of future government detailed planning.
A Government-led process to secure stakeholder participation in mobilizing national ownership will be initiated.