When the ANC came to power in South Africa in 1994, land reform became a priority to address the fact that black farmers had been excluded from the agricultural economy throughout the 20th century.
The aim is to provide agricultural land to those who do not have the opportunity to increase their productivity, income and employment. The goal is to distribute 30% of agricultural land to black farmers.
Proactive Land Acquisition Strategy
In 2006 Proactive Land Acquisition Strategy (PLAS) was adopted. The acquisition program involved the government buying farmland previously owned by white farmers and redistributing it to black farmers.
This approach is usually ineffective. Failure can be attributed to limited implementation, weak institutional capacity and corruption.
A research report compiled by the Agricultural Research Council (ARC) for the department of rural development and land reform and released in 2019 explains the strategy.
The main finding is that more than half of the current beneficiaries do not report significant production.
We argue that the data collected and interviews with stakeholders reveal the reasons for failure. These include poor beneficiary selection, inadequate support and infrastructure and rampant crime.
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Agricultural infrastructure needs attention
Post-settlement support is inadequate. Agricultural infrastructure needs attention. There is scope for the successful integration of acquired farms into the profitable value chain if any obstacles are addressed.
Between 2003 and August 2022, the country acquired 2.9 million hectares of agricultural land through PLAS. About R12 billion has been spent on acquisitions.
This land consists of 2 921 farms under a 30-year lease to the beneficiaries.
The strategy has clear objectives: – Acquire land with high agricultural potential; -Integrating black farmers into the commercial agricultural sector; -Improving the method of selection of beneficiaries; – Improving land use planning; and -Ensure optimal use of productive land.
Analysis on purchased land
In order to assess the commercial potential and status of farms, the Department of Rural Development and Land Reform has asked the Agricultural Research Council to conduct an analysis of all purchased land.
Their tasks are: – Determine the agricultural potential of the soil; – Create a new farmer’s performance; – Define criteria for selecting beneficiaries; – Define criteria for contract support agencies; and -Identify interventions to help the scheme achieve its objectives.
Assessment results
The assessment shows that the acquired land is generally of good or fair quality and 98% has good enough natural resources. Most farms (59%) are quite large.
About 60% of all farms have the potential to achieve commercial production levels. About 10% have the capacity to support subsistence level production.
Beneficiaries are not evaluated. For the future success of land reform, the importance of selecting beneficiaries with entrepreneurial talent, resilience and technical skills will be crucial.
The latest resolution on land reform passed by the ANC contradicts the legislative instrument to regulate the acquisition of state land.
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-Johann Kirsten is director of the Economic Research Bureau, Stellenbosch University; Aart-Jan Verschoor is senior manager, Agrimetrics, Agricultural Research Council; and Colleta Gandidzanwa is a researcher, University of Pretoria.
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