Farmers concerned over renewed land expropriation and land reform rhetoric

Free State Agriculture (FSA) has expressed its concern about the renewed political and legislative focus on land reform, especially the possibility of further constitutional and legislative amendments, at a time when South Africa is already under great economic pressure.

Recent statements from government circles raise further concerns. Advocate Ngwako Maenetje, senior advocate representing President Cyril Ramaphosa, argued in the Western Cape High Court earlier this month that the Expropriation Act properly implements land reform measures in the Constitution. The Minister of Rural Development has also indicated that further legislation, including the proposed Equitable Access to Land Bill, is being considered to, among other things, ensure that districts reflect the demographics of South Africa.

This raises the question of what the real policy objective of the new expropriation and land reform framework really is?

Friedl von Maltitz, vice-president of FSA, says: “Farmers have been repeatedly reassured that the Expropriation Act does not aim to drive land reform through expropriation. However, when government representatives themselves present land reform and redistribution as objectives of the broader legislative framework, it is inevitable that landowners and investors experience further uncertainty.”

Von Maltitz further states that FSA supports a fair, constitutional and economically sustainable land reform process. “However, after approximately 30 years of land reform, South Africa must honestly ask which models actually work. There are success stories, but also numerous cases where state-driven new emerging farmer programs have not delivered the expected sustainable production and economic value.”

Gernie Botha, CEO of FSA, points out that the organization is also concerned about possible new powers for municipalities to identify and acquire land for public purposes, including land reform. This must be assessed against the background of the Auditor-General’s latest findings on serious management and financial problems in local authorities. “Institutions that are struggling to meet existing responsibilities should not be given further intrusive powers over private property without sufficient capacity and accountability.”

Policy uncertainty has a direct economic cost.

Agriculture is a major contributor to South Africa’s economy, food security and rural job creation. Uncertainty about property rights, land use and future policy discourages long-term investment and harms not only landowners, but also financiers, input suppliers, employees and new entrants to agriculture.

FSA is therefore concerned that increasingly polarised political statements on land could weaken race relations. “Land reform should not become an instrument that pits rural communities against each other. In a time of farm attacks, rural crime and economic pressure, political leaders should instead promote trust, cooperation and stability,” says Von Maltitz.

FSA therefore calls on government to assess land reform on the basis of productivity, job creation, food security, economic sustainability and the success of new farmers, rather than simply the amount of land transferred.

“South Africa does not need another round of policy uncertainty. We need legal certainty, investment confidence and an agricultural sector that enables more people to participate successfully in the economy. FSA is prepared to work constructively towards land reform that is fair, constitutional, economically sustainable and to the benefit of all South Africans.”