LAND REFORM Lessons regarding Land Reform in the Sugar Industry 23 April 2015 Presentation to KZN Economic Recovery Conference Sibaya S J Saunders 7 August

2 47% of S A’s population are rural based citizens. The welfare of the country’s rural population is linked to the foundation of the country’s post 1994 stability : a promise to restore equitable land ownership. Despite the significant progress made by South Africa over the past 15 years, people living in rural areas continue to face the harshest conditions of poverty. Land Reform in the current economic climate needs to be managed with sensitivity to ensure poverty is not exacerbated and commercial agriculture is not undermined THE CHALLENGE

3 Currently about 17% of commercial sugar cane supplying the SA industry is under black ownership. Currently, there are white commercial cane growers and 327 (20%) black commercial cane growers in South Africa. As at February 2009 approximately 52% of land used to grow commercial sugar cane in South Africa has a land claim against it. Only 8% of land claims have been settled. LAND REFORM : SUGAR INDUSTRY (1)

4 Undertaking a land reform program (both redistribution and restitution) on the scale SA has embarked upon is both challenging and complex. It requires stakeholders working towards a shared goal with a common value system. It requires the institutions of the State, and commercial agriculture’s role players to work jointly with one another. LAND REFORM : SUGAR INDUSTRY (2)

Har har! Your end of the boat is sinking!!!

6 Agronomic Issues (A)Ensure the land remains agriculturally productive. -The productivity of the farming enterprise is not impaired. -The property continues to be farmed according to accepted husbandry practices – particularly after valuation and before transfer. -Farms need to be transferred to new owners prior to the start of the harvesting season (i.e. Jan/Feb/March) -Cost to re-establish dry land farming R per hectare hectares = R150 million. -Speed of deterioration, despite resilient nature of cane. KEY PRIORITIES

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8 (B)Identify areas for redistribution/restitution with the greatest agronomic chances of success. -Issues include rainfall, soil type and historical yields -Farm sizes -“Don’t chase hectares, chase sustainable solutions.” -The need for “EARLY” colloboration between the state land reform agencies and industry players in identifying suitable land. KEY PRIORITIES

9 Respect market values – (“Chasing hectares” is skewing land values) Respect the restrictions in title deeds – this assists both parties to continue production. (i.e. Cane Supply Agreements) Streamline process between gazettement and degazettment -Willing sellers / non sellers -Use of “compromise/settlement agreements” -Use leases as a mechanism to : -Ensure land remains agriculturally productive. -Immediate income to communities/individuals. -Skills transfers – training and development; mentoring. LAND TRANSFER ISSUES

10 Local milling and grower forums are currently established. They need to be given the responsibility of ensuring redistributed and restituted land is sustainable, with regional governments’ financial support. Provision for farming services, procurement, administration, training and development at local forums – already established. State provision of capital for ongoing mentoring, training and development – using local forums, through Sugar Industry structures. (Requirement R5 – R10 million per annum). State subsidies for Black farmers through SASA training facilities. SETTLEMENT ISSUES

11 Co-ordinate State Land Redistribution efforts through one office (Land Reform and Land Restitution) – needs. Accountability to the Department of Agriculture. Department of Agriculture must be the responsible organisation for execution of policy and accountability for pre and post land reform outcomes. Appropriate skills need to be assigned in Department of Agriculture – outsource of certain functions to private sector. Appropriate state funding institutions need to be aligned and energised to Department of Agriculture’s Land Reform Mandate (Land Bank; Ithala). Strong lines of co-ordination with Department of Water Affairs and Department of Transport (Transnet Freight). Use of State resources to drive rural development in a co- ordinated fashion. Use commercial agriculture and private sector to drive government agenda in meeting its land reform objectives. INSTITUTIONAL ISSUES

12 “ We need to empower the poor through land reform. Our land reform has so far not been linked to rural development.. ” PRESIDENT OF REPUBLIC OF SOUTH AFRICA : Jacob Zuma University of KZN 2008

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