Business Day asked the acting director-general of rural development and land reform Leona Archary these 10 questions a week ago. Her spokesperson Linda Page says she is "not available" to answer.
1. What are the criteria for allocating farms to beneficiaries under the current land reform programme?
The criteria for allocation of farms are opaque. Anyone from a poor person with no access to land to a financially capable commercial farmer wishing to expand are eligible. The department provides no information on how it selects beneficiaries on its website. There are countless allegations of corruption over allocation of farms.
2. How many farms has the department bought but not allocated?
It is common cause that the department presently has a large number of farms — possibly as many as 5,000 — which it has bought but not allocated.
3. How many of these farms are in productive use?
4. The Land Bank says this land should be released as soon as possible to farmers. What is your view?
5. The Land Bank says it believes the price of land being sold to black farmers through land reform is inflated by an average of 30%. Some research findings show this to be even higher. What is your view?
It appears to be common practice that corrupt land valuers work with government officials to inflate prices and take a cut.
6. Why did the department stop giving black farmers who benefit from land reform title deeds?
In about 2009 the department stopped giving title deeds and now offers only leasehold. This has meant emerging black farmers cannot raise finance to develop their farms.
7. Has the switch to leasehold impacted on the ability of beneficiaries to access finance?
8. How long is the average lease?
Officially, the department says it now allocates 30-year leases, which are bankable, but most practitioners and financiers say they seldom come across these and that the average lease is three years. This is a serious impediment to farming as most commercial crops require a long-term investment.
9. How many leasehold beneficiaries are paying their rent?
Frequently, farmers are unable to pay rent because they cannot realise a return off the land without investment. Those who do not pay their rents will not be converted to title deed holders.
10. Has the department explored other models — for instance, blended grant and loan financing — to [address] the difficulties black farmers have in accessing sufficient credit?
Policy suggestions emanating from the financial sector suggest a new financial model. Is that under consideration?
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