Following the recent ANC General Council meeting, Minister Nkwinti was quoted in the media as having stated that the 50/50 proposal in terms of which farmers must share half their farms with workers, is now formally ANC policy.  “This is a very sensitive matter, which needs to be understood in context”, said Ernest Pringle, Chairperson of Agri SA’s Agricultural Development Policy Committee.

Minister Nkwinti’s original proposal amounted to a rigid, forced confiscation of 50% of every farm in favour of workers by applying a fixed formula, without any direct compensation being payable to landowners.  This was rejected by Agri SA and many other stakeholders as unworkable, damaging to the sector and quite possibly unconstitutional. Agri SA stands by this viewpoint.

Minister Nkwinti has since consulted with stakeholders and challenged organised agriculture to bring alternative proposals to the table. Agri SA reacted positively and proposed alternatives which it views as workable. During his budget speech Minister Nkwinti confirmed that he intended following a more flexible approach in accordance with the alternative proposals that he had received. He again confirmed at a meeting with organised agriculture held on 22 May 2015 that land owners will be given the opportunity to choose their own partners, that no one-size-fits-all approach would apply and that incentives will be developed to encourage participation by landowners.

As a result of these assurances Agri SA participated in a working group tasked to develop criteria for pilot projects, identifying pilot projects and monitoring the implementation thereof over a 4 year period. Lessons learnt will determine further policy development. The criteria is based on voluntary participation and requires that projects are based on sound business principles. Moreover, a flexible approach is foreseen in order to accommodate the diversity of the sector. In this regard skills transfer, economic- and environmental sustainability and sustained production are recognised as important considerations.

“It is still Agri SA’s expectation that this is indeed the basis on which the pilots will be run.  This assertion is in line with a presentation by a ministerial task team made as recently as 4 October 2015. Agri SA, therefor, require urgent clarification of the correct wording and interpretation of the policy decision taken by the governing party in this regard,” said Pringle.

Issued by Agri SA