Agricultural industry organisation Agri South Africa (AgriSA) calls on Finance Minister Enoch Godongwana to use his Medium-Term Budget Policy Statement, to be presented in Parliament on October 21, to sustain agricultural production by addressing the infrastructure and animal-health constraints impeding further growth.

Specifically, it calls for temporary diesel rebate relief, sustained Land Bank funding, continued procurement and delivery of foot-and-mouth disease (FMD) vaccines, rehabilitation of flood-damaged infrastructure and a funded El Niño preparedness programme.

Agriculture investments deliver their full economic benefit when roads connect farms to markets, water infrastructure works, ports move produce efficiently and veterinary services control disease, and the MTBPS must strengthen these foundations, says AgriSA CEO Johann Kotzé.

Agriculture grew by an average of 3% a year since 2012, compared with less than 1% for the broader economy.

Sustaining this contribution requires targeted support through a difficult production season, alongside investment in the public systems that allow farmers to expand, employ and export, he says.

However, rising costs beyond the farm gate are a significant threat to horticultural competitiveness. Greater production cannot deliver sustained growth if unreliable electricity, damaged roads and port delays absorb the returns needed to finance the next investment.

Flood recovery must, therefore, form part of the agricultural growth programme. Government should prioritise outstanding repairs to roads, bridges, irrigation systems, dams and electricity networks in areas affected by flooding earlier this year, AgriSA says.

Further, allocations should identify the infrastructure that must be restored and the responsible authority.

Rehabilitation must include maintenance and improvements that reduce exposure to future extreme weather, it adds.

The economic consequences of the flooding extend beyond individual farms. A damaged bridge raises transport costs across a production area and a compromised irrigation system threatens subsequent harvests.

Similarly, an unreliable export route can reduce the value of a perishable crop after the farmer incurred the cost of producing it, the organisation says.

Additionally, AgriSA calls for investment to also reach the areas where inadequate infrastructure constrains agricultural potential.

New agricultural producers must have access to development finance and land, along with reliable water, electricity and market connections, to build viable businesses, it says.

Further, AgriSA calls for El Niño preparedness and FMD control to receive immediate attention alongside the infrastructure, market-access and institutional reforms that determine agriculture’s longer-term prospects.

“Temporary relief helps farmers manage the coming season. Reliable infrastructure and effective animal-health services give them confidence to invest beyond it. The budget should connect both of these objectives through clear allocations and delivery and responsibilities,” says Kotzé.