AGRICULTURE NEWS - The current agriculture debt position demands a responsible and cautious role out of the land reform process in South Africa. A need for recognition of the impact of land reform on financial institutions holding debt agreements with farmers, has been signalled by Willie du Plessis, head of Standard Bank Agri Business at the recent Bien Donné Agri Cape Week at Simondium, Paarl.

Du Plessis requested government to calculate the implications of land reform on stability in financial institutions cautiously.

“If it is made difficult or impossible for land owners to repay their more than R86 billion agricultural debt to banks the process may hold serious consequences”, he said.

Linking to the concerns of du Plessis, Dr Purchase, CEO of Agbiz, said government understands much about the issues of concern raised by agriculture and took clear note of objections against the Green Paper proposals. However, for a land reform process to take place it remains vital to first complete the national land audit.

For government land the audit process has been concluded. Government also knows how much land is owned privately. The racial segmentation of private land currently remains unanswered. Very little progress has been made with easier access to communal land.

According to Purchase there are an array of uncertainties regarding goals, processes and time lines within the land reform process. These obstacles are already turning potential investors away from South African agriculture.

Some concerns which have been put onto the table by Purchase were included in recent interaction between Agbiz and the office of mr Gugile Nkwinti, national minister of Land Affairs These included the possible reopening of the land restitution process, to include the period prior to 1913.

“Records for these type of investigations are inadequate and claims will be launched by numerous parties for the same piece of land, deadlines are not set clearly,” Purchase said.

He also shared serious concerns of Agriculture with proposals regarding:

• Land ownership by foreigners. Purchase suggested that foreign land ownership restrictions should be limited to new entrants only;
• The importance of a structure of the proposed land management commission representative of all stakeholders. “If this commission would get legal status agriculture wants certainty of access to courts with the authority to decide on appeals against decisions of the land value general.

According to Purchase the current unhealthy balance between owners and residents regarding the land rights management council and security of tenure should also be addressed.

He called for a well-researched, realistic and effective process and remains positive about satisfactory solutions to the benefit of current land owners and new entrants into the industry.

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