Private ownership is the best approach in farming

I’ve travelled the length and breadth of SA for the past decade and continue to be intimately involved in people development within the educational, cultural and economic spheres.

My job deals with transformation in the agricultural sector, and what a privilege it is to be part of so many agricultural projects that are successful.

In all instances such success is the result of win-win partnerships between black, coloured and white farmers who respect one another.

However, I’ve also seen many agricultural projects that have failed. Once thriving farms are destroyed due to a lack of support, expertise, mismanagement, corruption, lack of partnerships and conflict between beneficiaries.

A critical success factor that runs like a golden tread throughout the many successful agricultural projects is ownership of land.

For many black and coloured farmers this issue is the biggest constraint, because the land on which they farm cannot be used as security to access finance.

Policy pronouncements by the EFF and the ANC sadly dismiss or question the concept of private ownership. This is a critical building block for economic freedom and wealth creation. Nationalisation of land, as proposed by the EFF, means the state becomes the owner of all land.

Existing title deeds constituting evidence of a right, especially to ownership of property, will be nullified. The economic implications for every citizen who owns the land on which one’s house, factory and shop are built and where retail, manufacturing and farming operations, for example, are practised, will be dire.

Most people use their properties as security to borrow money from banks and municipalities depend on the rates and taxes they collect from all property owners to build and maintain infrastructure. The Treasury faces a shortfall of R48bn and with the additional burden to compensate municipalities for the loss of income from rates and taxes it will result in the need to increase taxes to avoid a complete collapse of municipalities across SA.

It is clear that should the state become the owner of all land, it will put SA on a path of economic decline from which it will not be able to recover.

And while the rich will be able to emigrate and shift their money to other countries, ordinary South Africans, and especially the poor, will bear the brunt. Many of our state institutions such as public hospitals, schools, colleges and farms that are under the control of the state are barely functioning and as such perpetuate and deepen the hardship people endure on a day-to-day basis.

And while so many people pin their hopes on accessing land for agricultural purposes, it’s clear that the proposed changes to the Constitution to expropriate land without compensation will only benefit the politically connected. This has been the case for 20 years and it will be no different in the event of large-scale land expropriation, due to deeply rooted corruption, political patronage and incompetence.

The Agri SA and Operation Phakisa initiatives that are based on Chapter Six of the National Development Plan — the result of intensive engagement between all government departments, agricultural labour unions, organised agricultural bodies, universities and leading agricultural policies — developed comprehensive project plans related to land reform, farmer development, rural development, farm worker skills development and housing ownership plans.

These plans were developed to transform the agricultural landscape in a methodological and sustainable way in order to ensure people development, restoration of their dignity, food security and job creation.

Why not implement them as a joint project between the public and private sector under the custodianship of all of our political parties?

Sadly, though, some of our political leaders are hellbent on stoking racial division and hatred instead of bringing people together to work as Team SA for the greater good.

So too are extremist right-wing groups who are fuelling fear and the handful of lunatics who are threatening each other with war talk. No land grabs or illegal occupation of land has taken place thus far, which leaves the door wide open for constructive engagement between organised farmer unions and the government.

Visionary and statesmanlike leadership is required that will not compromise on any attempt to change the Constitution to allow for expropriation without compensation and the nationalisation of land. It is not in the interest of the people and will bring about greater uncertainty, deter foreign investment and result in economic havoc and suffering.

For the corrupt and political opportunists, such ill-fated policies create the perfect breeding ground for self-enrichment at the expense of our citizenry and to consolidate their power base based on nepotism, partisanship or patronage. Let us not be fooled by populist rhetoric that raises more questions and provides no answers.

We do have the agricultural plans jointly developed by role players in the agricultural sector and which are based on Chapter Six of the National Development Plan. The government forked out millions to get all role players around the table to devise workable and implementable plans.

The successful implementation thereof should be our first priority.

Why it isn’t is beyond anyone’s grasp.

• Van der Rheede is deputy executive director of Agri SA.