We must leverage the agricultural sector to create jobs

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The crippling crisis of unemployment and low prospects of future growth in the country ought to necessitate a positive re-imagination of the role of agriculture in the economy.

Some of the sector’s constraints are well-known. Research has shown that the commercial farming sector is hardly ever efficient, because of a number of policy and operations constrains. About 80% of all the food produced comes from just 20% of the total commercial farms in the country and 80% of these farms are struggling to make ends meet.

The consolidation of agriculture among the few is as a result of the policy changes made since 1994, key among which was the liberalisation of agricultural trade, the destruction of the specific agricultural products marketing boards and the removal of agricultural subsidies which had cushioned many farmers for decades.

Ensure a wide scale redistribution of land to agricultural households who farm or want to farm but are without land. Tied to this must be legislative restrictions to the farm sizes and the amount of land each individual or entity is allowed to own. This is necessary to deal with the monopolisation of the sector.

Revising the mandate of Land Bank, to ensure that its core focus is on the empowerment of small and emerging black farmers who are rejected by commercial banks.

 

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How can you leverage a sector already running and producing just above the margins of economical survival? Agricultural-related debts are already spiraling out of proportion.

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 /  🏆 13. in ZA

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