1. DEPARTMENT: AGRICULTURE Comprehensive Agriculture Support Programme (CASP) Portfolio Committee presentation Department of Agriculture 2004 CASP

2. DEPARTMENT: AGRICULTURE What is CASP? Part 1

3. DEPARTMENT: AGRICULTURE Aim of CASP To enhance the provision of support services to promote and facilitate agricultural development targeting beneficiaries of the Land Reform and Agrarian Reforms programmes.

4. DEPARTMENT: AGRICULTURE CASP and Policy Reform Policy documents providing the policy framework for CASP:  The White Paper on Agriculture (1995)  The White Paper on Land Reform (1995)  The Reconstruction and Development programme  The BATAT Strategy (1995)  The Strauss Commission Report (1996)  The Land and Agriculture Development Programme (1998)  Skills Development Act  National Skills Development Strategy

5. DEPARTMENT: AGRICULTURE Policy Reforms  Deregulation of the agricultural product marketing  Changes in fiscal treatment of Agriculture  Abolition of certain tax concessions  Reduction in the direct budgetary expenditure on the sector  The land reform, restitution and redistribution  Trade policy reforms and general liberalisation of agric trade  Institutional reforms, esp. the three tiers of Gov involved in Agriculture  Changes in the mandate of the Land bank  Repeal of the Agricultural Credit Act

6. DEPARTMENT: AGRICULTURE Strategies to put policy reforms into practice  Integrated Sustainable Rural Development Strategy (ISRDS)  The Land Redistribution for Agricultural Development sub- programme (LRAD)  Integrated Food Security and Nutrition (IFSNP)  The National Landcare programme  Agriculture Sector Strategy  Comprehensive African Agriculture Development Programme (CAADP)  Knowledge and Information systems (KIMS)

7. DEPARTMENT: AGRICULTURE The need for CASP  Inspite of strategies and policies, agricultural support services have been inadequate, hence CASP  CASP flows from the recommendations of the Strauss Commission report, which recommended: The financial “sunrise” subsidies to establish financing mechanisms The adoption of a “sunrise” package of enabling conditions for the beneficiaries of land reform to streamline and align service delivery within the three tiers of government Identified as a priority within the intergovernmental fiscal review process focusing on service delivery.

8. CASP model The Hungry & Vulnerable Household food security & Subsistence Farm & Business level activity Agricultural macro- system within consumer economic environment Agriculture support Information & Knowledge management Information & Knowledge management Technical & advisory assistance Technical & advisory assistance Financial assistance Financial assistance Training & Capacity building Training & Capacity building Marketing & Business Development Marketing & Business Development On & off farm infrastructure On & off farm infrastructure 6 pillars

9. DEPARTMENT: AGRICULTURE CASP beneficiaries Though this group is primarily the responsibility of the Department of Social Development, they are supported by the DoA and PDAs through advice and during food emergencies and crises through the agricultural food packs and for those families who are ready, the introduction of agriculture starter pack (Block 1) 1. The Hungry & Vulnerable

10. DEPARTMENT: AGRICULTURE CASP beneficiaries (cont…) Supported through food production and include the beneficiaries of the Special Programme on Food Security (SPFS) and the Integrated Food Nutrition Programme (IFSNP) where the provision of the agriculture starter pack is made. (Block 2) 2. Subsistence & Household Food Producers

11. DEPARTMENT: AGRICULTURE CASP beneficiaries (cont…) Supported through farm level support and include beneficiaries of the LRAD and other strategic programmes, e.g. SLAG, Restitution, Redistribution, Tenure reform. (Block 3) 3. Farmers

12. DEPARTMENT: AGRICULTURE CASP beneficiaries (cont…) This category includes the agri-business and entrepreneurs to ensure that business and regulatory environment is conducive to support agricultural development and food safety. (Block 4) 4. Agricultural macro-system within the consumer environment

13. DEPARTMENT: AGRICULTURE 6 priority areas of CASP  Information and Knowledge Management  Technical and Advisory Assistance, and Regulatory Services  Training and Capacity building  Marketing and Business Development  On-Farm and off-Farm Infrastructure and Production inputs  Financial assistance

14. DEPARTMENT: AGRICULTURE Roleplayers CASP will be implemented through partnering between:  Department of Agriculture  Provincial Departments of Agriculture  Department of Land Affairs  National Treasury through the Intergovernmental Fiscal Review  District committee and council  The Beneficiaries  Banking Institutions – The Land Bank  Sector Education and Training Authorities  Other Partners

15. DEPARTMENT: AGRICULTURE Intergovernmental Fiscal Review Process  Formation of 10x10 and 4x4 4x4: joint technical committee set up to establish greater coordination on policy development and budgeting for functions that are a joint responsibility of national and provincial governments. Reports to 10x10: sectoral committee of DoA and National Treasury  Technical team prioritised CASP Identifies spending pressures & cost drivers Developed templates to identify targets and budget for MTEF

16. DEPARTMENT: AGRICULTURE CASP Expected Outcomes  Increased creation of wealth in agriculture and rural areas  Increased sustainable employment  Increased incomes and increased foreign exchange earnings  Reduced poverty and inequalities in land and enterprise ownership  Improved farming efficiency  Improved national and household food security  Stable and safe rural communities, reduced levels of crime and violence, and sustained rural development  Improved investor confidence leading to increased domestic and foreign investment in agricultural activities and rural areas  Pride and dignity in agriculture as an occupation and sector

17. DEPARTMENT: AGRICULTURE CASP implementation strategy Three-pronged strategy of :  Aligning support services related to Information and knowledge Technical and advisory services, Training and capacity building, Marketing and business development,  Phasing in basic support services related to On farm and off farm infrastructure, agricultural inputs, marketing and business development.  Policy for agricultural financing

18. DEPARTMENT: AGRICULTURE Aligning support services Done through the:  Intergovernmental Fiscal Review  MTEF  Treasury guidelines for measuring service delivery  Setting norms and standards and monitoring systems  Working group has been formed to align extension, information, advisory services, training

19. DEPARTMENT: AGRICULTURE Phasing in basic support services Following priorities have been agreed upon:  Fencing  Water for household food security and food production  Dipping services  Stock handling facilities  Next phase to prioritise production inputs, mechanisation and marketing and business development

20. DEPARTMENT: AGRICULTURE Financing strategy  President’s SONA announced re-establishment of the ACS;  Currently the Department is in the process of examining the design and will shortly determine a date for public debate;  Invite finance team to make presentation

21. DEPARTMENT: AGRICULTURE Where are we? Part 2

22. Land and Agrarian Reform Comprehensive Agricultural Support Programme Land Redistribution for Agricultural Development Restitution Programme Tenure Reform Programme Where it is agricultural land Water Resources Strategy Viable Farming Enterprises Agro Tourism Strategy Agro processing Industries Household Food Production Programmes Integrated Food Security and Nutrition Programme

23. DEPARTMENT: AGRICULTURE Budget An allocation of R 750 million has been made through the MTEF and implemented through the Division of Revenue Act (DORA)  R 200 million for 2004  R250 million for 2005  R300 million for 2006

24. DEPARTMENT: AGRICULTURE Budget allocation (2004/05) per province ProvinceAllocated amount Eastern CapeR 38 043 000 KwaZulu-NatalR 37 016 000 LimpopoR 33 428 000 North WestR 26 875 000 MpumalangaR 18 903 000 Free StateR 16 870 000 Western CapeR 13 765 000 Northern CapeR 10 518 000 GautengR 4 582 000

25. DEPARTMENT: AGRICULTURE Work in progress  Phased in basic support services (fencing, water, dipping and stock handling)  Finalising guidelines for mechanisation, agricultural inputs, marketing and business development.  Continue alignment through Intergovernmental Fiscal Review to populate the template with budget pressure points as they relate to research & extension services, training and capacity building information and advisory services and regulatory services.  Finalise the financing mechanisms for agricultural support in CASP  Finalise monitoring and reporting systems as per agreed within DORA

26. DEPARTMENT: AGRICULTURE The implementation challenges  Working with the provinces – within the context of concurrency resulted in backlog in implementation of projects on the ground and utilization;  Limited resources – need to prioritise Restitution Beneficiaries, LRAD beneficiaries; Communal areas and resource limited black farmers in general;  Focus in year one – on and off farm infrastructure;  Demand exceeds supply;  Implications of other land reform programmes – sustainability;

27. DEPARTMENT: AGRICULTURE Next steps  Implementation of the Agricultural Research and Extension support services  Alignment of CASP deliverables with other Land and Agrarian Reform Programmes  Alignment of CASP with IFSNP  Alignment of CASP with the Financing Strategy  Preparing projects for submission for financial year 2005/06 as prioritized by Provinces focused on the other pillars  Presented CASP as priority at MTEC and awaiting outcome  Community mobilization for ownership of projects