Far too often, when we talk about supporting
farmers and about developing the wider
agriculture sector, the needs of new farmers
and small-scale farmers on the one hand, and
those of established commercial farmers on the
other, are treated as if they are wildly different.
This creates the impression that there has to be
completely separate support strategies for these
two groups of farmers. However, this is only true
to a small extent. The greater truth is that many
of the needs of farmers, regardless of the size or
development stage of the business, overlap.
I absolutely agree that in South Africa
the primary focus of public sector support
and involvement in the farming sector
should be on promoting the growth of new
and developing farmers. However, the
method of support needs to change.
The most effective way for government
to enable the success of private businesses,
big or small, is often not via direct support
and intervention, but rather through indirect methods that create a business-
friendly environment conducive to growth. The added benefit of this type of
approach is that no one is excluded, and it encourages real growth and the
creation of new value, instead of just a redistribution of existing value.
Let’s take the water crisis facing South Africa as an example. Most agricultural
industries rely, at least to some extent, on the regular supply of safe water for
irrigation and livestock. Agri-processors, including abattoirs and fruit and
vegetable packers, sorters and processors, would not be able to operate without
water, which would leave farmers without a market for their produce. Therefore,
when the supply and quality of water is compromised, the whole system falls
apart and everyone suffers. In fact, it is often developing farmers, who are more
vulnerable in these situations because they lack the resources and networks
needed to quickly put alternative solutions in place, who suffer the most.
If water infrastructure in a certain region is in such a poor state that farmers
and businesses cannot rely on secure supply, municipalities and provinces would
serve all farmers, including emerging farmers, better by fixing the water supply
first, before spending millions on helping emerging black farmers set up their
businesses. This is because the investment made in these farmers may turn out
to be a waste of money in the end as they will not be able to function without a
secure water supply, and the area’s entire economy would feel the effect thereof.
The same principle applies in many instances, including providing better drought
support for farmers in need, establishing a state-subsidised insurance scheme for
farmers, improving rural safety and security structures, providing more comprehensive
trade support, and providing some relief to farmers from above-inflation increases
in administered prices. The bottom line is this: new farmers will stand a much better
chance of succeeding if government does its part in ensuring that the environment
in which they operate makes it possible for any farmer to succeed.
▪
FW
A win-win approach
to farmer support
Denene Erasmus
Editor
From the Editor
4 farmer’sweekly 2 August 2019
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