The proposal of a land ceiling policy for South Africa was raised for the first time in 2011 in the Green Paper on Land Reform. A four-tiered system of landownership is envisaged where private ownership will be of limited extent. The reasoning is that this will be a useful measure to speed up land reform, make more land available to the poor and previously disadvantaged and redistribute wealth.

The Department of Rural Development and Land Reform has cited studies that seem to show that this will be the magic wand that the country needs to address the triple challenges of poverty, unemployment and inequality and Minister Nkwinti is seemingly now set on finalising draft legislation on land ceilings and table such legislation in Parliament.

Agri SA, Agbiz, the Banking Association of South Africa and other organisations that have a stake in the farming sector in the country hold a contrary view and are very concerned about the impact that the introduction of land ceilings may have on investment, productivity and the future growth of the sector that is responsible for national food security.

Report by AgriSA