/ 3 February 2012

Why government is involved

The subject of land reform and emerging farmers is highly complex, and Mpumalanga Department of Agriculture, Rural Development and Land Administration (DARDLA) recognises the need to support and manage individual projects according to their unique circumstances.

Head of department Nelisiwe Sithole acknowledges that in the public domain, land reform farms have been failing to impress and have hence created a poor perception of the future of land reform and emerging farmers throughout South Africa. This has largely been due to a lack of support and a lack of skills development in the past, she says, adding that government is recommitting sufficient and valuable resources to this sector.

In 2008, the Mpumalanga DARDLA embarked on a full audit, identifying each and every land reform project under its jurisdiction. It came to light that funds had been misappropriated and that some projects had been left to their own devices following grants being awarded from the Land Bank.

Projects that previously fell under the Bushbuckridge region were also inherited, which further necessitated an in-depth investigation. It became apparent that the Mpumalanga government had to immerse itself even further as a key driver of intergrated planning and agricultural infrastructure development, which is where government continues to assist. For example, irrigation has been identified as a key area of infrastructure development where government intervention can greatly assist emerging farmers.

Capacity building is also vital to a successful project, as was the case with Coromandel Estate, where the community had to ultimately be fully engaged and informed. With Coromandel, the support of the community has been vital to the upward growth of the project; government has identified that one of the key roles for DARDLA has been that of facilitator and mediator.

It is important to recognise that community dynamics understand- ably alter the process of capacity building — since not everyone will always agree, the role of mediator and facilitator is vital. It is a vibrant and very liberal scenario that must engage with both old and young people; it is essential for DARDLA to engage with the youth and to ensure that all decisions are understood.

With Coromandel, it was fundamental for all to acknowledge that not everyone could be a manager, not everyone could work on the farm and not everyone could become a successful agricultural entrepreneur. Social cohesion must be ‘rule number one’ in terms of rural development. What separates Coromandel Estate from other farms is that the beneficiaries now have the power to determine their own future.

From government’s perspective, DARDLA is there to support and to guide, and it has become clear that each and every beneficiary now understands the process of land reform and is willing to learn throughout this process. The members now realise that it is not necessarily the best financial decision to develop the entire farm themselves, but that leasing land can be as financially rewarding and beneficial. This is not about empowering black communities only — this is about job creation.

Initially, Coromandel Farm workers Trust had created a poor impression due to an obvious disintegration of planning and the vision for the farm seemed unclear. Now, it is integral for the presence of the people such as the MEC and HOD to be commonplace, and to encourage the beneficiaries to be united in their long-term goals. DARDLA is also committed to the improvement and focus on capital assets, such as tractors. This equipment plays such a vital role in a successful agricultural endeavour that government has committed to providing the equipment, training drivers and servicing the vehicles on behalf of the emerging farmers.

The strategy for the department in terms of capital assets, through the Masibuyele Emasimini Programme, is to get these projects off the ground as quickly as possible. Irresponsible lending and over- or under-financing projects have also contributed to the failures in the past, but new strategies with regard to lending money (such as streamlined funding) is what will set Coromandel and other such projects on the path to success.

Responsibility
DARDLA is intent on placing emphasis on responsible economic support, and this is achieved at Coromandel through the use of agricultural economists, who remain on site to assess individual positions, perform needs analyses and then tailor-make solutions. This service also needs to analyse the market place and to not only look at which crops or animals will best suit an area, but how the global markets are performing. One such example of valuable economic strategy is the leasing of Coromandel land to the largest producer of potatoes seeds in the country, which produces 37 varieties in total.

Coromandel is home to only one variety, but it is now in its third generation, brining in much needed revenue. In hindsight, the Coromandel Estate’s current goals should have been in place from the start. Government has recognised the beneficiaries’ errors made in the past, but has since 2008 adopted a proactive approach to land reform by instituting systems and providing concrete assistance.

Partnerships
A key move in the future will be to develop strong ties with the private sector, to further streamline the process of land reform and rural development. For example, involving financial institutions right from the beginning to tailor-make financial support packages for this sector is of enormous importance, as it is to further engage agricultural experts to share skills and problem solve. These kinds of partnerships should branch off into mentorships, where advice and expertise are shared. The need for credible, compatible partnerships of this nature is what government is currently lobbying for.

Agriculture is now a global market- place and this too cannot be forgotten along the way. Mpumalanga wants to share its knowledge with other provinces, as well as to learn from what others have to share; land reform can only succeed as a collaborative effort. As evidence, the Western Cape certainly has a competitive edge over the other provinces when it comes to skills development — Mpumalanga delegates will be visiting the province to learn from what their delegates have to offer. Coromandel Estate, based on current production levels and if all goes well, should be able to earn a profit this year, and to pay dividends to beneficiaries.

Government has encouraged the board members to follow the strategy of paying out something, even if it is not a vast amount. It is important to demonstrate at least some growth in order to maintain the support of your beneficiaries. After all, the basis of land reform is to restore the dignity of the people, which is achieved through human development in totality. That is why it is integral to engage other departments such as housing and education with a project like Coromandel, and to view agriculture as a springboard for development.

Except for the next two years of specific infrastructure development, there is no set time frame on government’s commitment to Coromandel Estate. DARDLA will continue to facilitate and support the project with the view that the past 10 years of trial and error will soon culminate in great success. “As the Mpumalanga Province, we are impressed and motivated with the R8-million that has been spent on Corommandel over the last 3 years. We can be proud that public resources have been well spent as we are beginning to see the light right at the end of the tunnel,” says Sithole.

This article originally appeared in the Mail & Guardian newspaper as an advertorial supplement