Thoko Didiza, Minister of Agriculture, Land Reform, and Rural Development, has presented via her budget vote that the industry added nearly 50 000 positions with 860 000 workers in a period of two years.
She said the agricultural sector of the country expanded by 25% in real value added between 2020 and 2022, with almost 55% of the value coming from export revenues.
Didiza explained throughout the same time period, the industry added around 50 000 positions, with 860 000 workers in the industry.
“About 9% of agricultural output is produced by previously disadvantaged farmers, implying the sector is growing and gradually improving on inclusivity,” she said.
“This progress is encouraging but a far cry from our vision of a united and prosperous agricultural sector.
“Through the Agriculture and Agro Processing Master Plan we have set transformation targets to ensure that our sector is inclusive,” said Didiza.
Dizi has before Parliament tabled a budget of R17, 254,348 billion for the 2023/24 financial year, saying the budget will enable the department to implement programmes that continue to address food security needs of our communities and our country.
This will address land hunger, transform spatial planning and contribute towards the development of our rural areas in partnership with other spheres of government.
“At the same time, these resources will be channelled towards ensuring agriculture, land and rural sectors continue to play integral roles in the economic reconstruction and recovery,” she added.
She said earlier this year, in response to the energy challenges in the sector, her office established a Task Team composed of sector partners.
The Task Team has engaged with Eskom on solutions to mitigate against the impact of energy cuts on the sector.
“In addressing alternative energy sources in the sector, we are setting up the Agro-Energy Fund at the Land Bank,“ said Didiza.
“The focus for the Agro-Energy Fund will be on energy intensive agricultural activities.”
These will include irrigation, intensive agricultural production systems and cold chain related activities.
“The criteria that will be utilised is as follows: a large-scale farmer will receive 30% grant funding to be matched with a 70% loan portion, where the grant amount is capped at the maximum of R1.5 million,” she explained.
“A medium scale farmer will receive a 50%` grant to be matched with a 50% loan portion, where the grant is capped at the maximum of R1 million.”
Smallholder farmers will be supported by a grant portion of 70% to be matched with 30% loan she stated.
Christo van der Rheede, Agri SA, Chief Executive Officer they welcomes the funding allocated through the Land Bank to assist farmers in mitigating the impact of the energy crisis.
“We are, however, concerned that the quantum provided per farmer will only scratch the surface in addressing the crisis. We will therefore be approaching the department about further efforts to bring private finance institutions into the scheme, particularly through their respective green funds, to make more funding available and ensure that farmers can continue their vital production in a financially sustainable way,” said van der Rheede.
He said today’s budget was a critical one for the agricultural sector as farmers find themselves under enormous pressure with potentially devastating consequences for the country’s food security.
“Overall, this budget presented a sober picture of the sector and the challenges it faces, and we therefore welcome it. The Minister has emphasised the correct issues and put forward planned action that, if implemented, will help to alleviate the pressures on the sector. Our focus now will be on seeing implementation of the critical interventions announced,” said van der Rheede