AgriBulletin March 2021

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“We have enough policies, Landbank wek steeds kommer vir landbou sektor we lack implementation” ■ Roelof de Jonge

■ Roelof de Jonge Met dié dat die Landbank in duie gestort het ten spyte van die vele reddingsboeie wat die regering uitgegooi het, sit vele boere met ‘n ernstige penarie rondom inset-finansiering.

Indien die Landbank nie heeltemal met ‘n kundige bestuurspan geherstruktureer word sonder dat die owerheid op ideologiese vlak inmeng nie, kan die landbousektor dié bank maar groet as ‘n rolspeler in finansiering.

Dit is vir die Transvaalse Landbou-unie Suid-Afrika (TLU SA) bykomend hartseer aangesien die Landbank destyds gestig is uit ‘n besluit van die Transvaalse Landbou-unie kongres.

Die eiesoortige behoeftes ten opsigte van finansiering wat landbou verg, maak dat ‘n effektiewe en suksesvolle Landbank inderdaad ‘n noodsaaklike is. Die prys van regstellende aksie was hier net te groot.

Volgens die TLU SA staan handelsbanke se deure wel oop vir boere vir finansiering. Daar was reeds ook gesprekke met die onderskeie banke in die verband gevoer. Wat wel belangrik is vir lede is dat hulle moet besef dat op die einde van die dag gaan dit oor die terugbetaal vermoë van ‘n kliënt wat sekerlik in die dae die grootste en belangrikste aspek is wat bewys moet word tydens aansoek.

‘n Paar aspekte wat gewis van toepassing sal wees: • Aansoekers moet verseker dat die laaste paar jaar se geouditeerde state beskikbaar gestel kan word • ‘n Goeie uitvoerbare besigheidsplan moet voorgelê word waarin daar duidelik op ‘n realistiese wyse uitgewys word hoe die lening gediens gaan word • Moet voldoen aan die FICA (Financial Intelligence Act) vereistes • Oor watter geskiedenis beskik die aansoeker van ander skuld en hoe is dit terugbetaal • Goeie kontantvloei projeksie • Wees volledig, eerlik en deursigtig in die aansoek • Kom beloftes na en hou die bank volledig op hoogte van enige verandering in omstandighede • Doen betyds die beplanning en aansoek vir finansiering. Dit neem ongelukkig tyd alvorens goedkeuring gegee kan word al dan nie • Die bank behoort in ‘n sekere sin eintlik deel te wees van die bestuurspan sodat hulle deurlopend op hoogte is van alle verwikkelinge • Die rekord by SARS moet skoon wees.

The president presented arguably his most important State of the Nation Address (SONA) owing to the unprecedented global Covid-19 pandemic, according to Christo van der Rheede, the executive director of Agri SA. According to Agri SA, the president outlined a four-point focused plan for defeating Covid-19, accelerating economic recovery, implementing economic reforms to create sustainable jobs and drive inclusive growth, as well as fighting corruption.

Three of these are not new and Agri SA has continued to reinforce that South Africa is not policy bankrupt but remains challenged by the timeous and effective implementation thereof.

Reflecting on some key aspects of the address, Agri SA has the following views: In the midst of the economic damage caused

by Covid-19, South Africa’s agricultural sector has performed remarkably well.

In 2020, South-Africa became the world’s second-largest exporter of citrus, with strong export growth in wine, maize, nuts, deciduous fruit and sugar cane.

Agri SA appreciates the recognition given for the sector, seen that agriculture and the value chain remains a critical player as a contributor to the GDP and should receive further support.

South-Africa have now developed an infrastructure investment project pipeline worth R340 billion in network industries such as energy, water, transport and telecommunications.

Agri SA welcomes infrastructure development that will benefit the farming community as well as industries in the value chain.

The second priority intervention of the Recovery Plan is to support a massive increase in local production and to make South African exports globally competitive.

Agri SA welcomes this initiative and will actively take part and support the growth of the sector.

Poverty is on the rise. Inequality is deepening.

South Africa’s unemployment rate now stands at a staggering 30,8%.

South-Africa’s third priority intervention is an employment stimulus to create jobs and support livelihoods. The largest numbers of jobs will be created by the private sector in several industries as the economy recovers.

The newly announced national minimum wage will undermine the agricultural sector’s ability to create more jobs and to remain profitably. Many farmers have experienced drought for prolonged periods and the pandemic had a devastating impact on many subsectors. South Africa is experiencing an all-time high in terms of unemployment and any excessive salary increases as gazetted by the Minister of Labour, which

will exacerbate the unemployment crisis in the country. Ignoring this fact will be at the country’s own peril.

The fourth priority intervention of the Recovery Plan is to rapidly expand energy generation capacity. The agricultural sector remains ready to plug in and we continue to call upon the relevant stakeholders to partner with farmers to resolve the long-standing energy crisis.

We will finalise and implement the revised raw water pricing strategy and accelerate the establishment of a national Water Resources Infrastructure Agency. Agri SA will take part in processes to ensure a favourable outcome for farmers.

During the next financial year, Agri SA will establish a Land and Agrarian Reform Agency to fast-track land reform.

Clarity is needed on the function of such an agency. Agri SA, over a long period, promoted the idea of an SPV to take land reform forward.

Crimes like cable theft, railway infrastructure vandalism, land invasions, construction site disruptions and attacks on truck drivers hamper economic activity and discourage investment.

South Africa have taken steps and will continue to stop these crimes and deal with those responsible in terms of the law. Accelerating the conviction of criminals remains at the core of successfully realising this feat.

“The road ahead remains a challenging prospect and for us as a nation to weather the storm as well as set ourselves on a desirable trajectory, government needs to start coming to the party with the implementation of all these and other focus points,” van der Rheede said.

Christo van der Rheede, the executive director of Agri SA.

TLU sê sy sê teen onteiening sonder vergoeding ■ Roelof de Jonge

WE ARE OPEN ON SATURDAYS!

Die Transvaalse Landbou Unie Suid-Afrika (TLU SA) het in begin van Februarie amptelik kommentaar gelewer teen die wysiging van die bestaande Onteieningswet (Wet 63 van 1975). Die tydperk vir openbare kommentaar is pas van die 10de Februarie tot die 28ste Februarie 2021 verleng.

In die kommentaar stel TLU SA voor dat die voorgestelde wet herskryf moet word sodat onteiening van eiendom slegs kan plaasvind wanneer dit benodig word vir die ontwikkeling van infrastruktuur, en dan slegs teen markverwante pryse.

“Hierdie wetswysiging is waarskynlik die mees kortsigtige stuk wetgewing wat al ooit ter tafel gelê is,” het Henry Geldenhuys, die president van TLU SA, gesê.

“Dit kanselleer enige moontlikheid om Suid-Afrika se ekonomie te herstel. Die regering moet markkragte respekteer en eiendomsreg erken as die fondasie vir ekonomiese groei.”

TLU SA se kommentaar beklemtoon dat die vae bewoording van die wetswysiging die baan weg vir die regering om enige eiendom onder die voorwendsel van openbare belang sonder vergoeding

te onteien.

“Wetgewing moet daarvoor voorsiening maak dat grond vir infrastruktuur ontwikkeling, wat dan in openbare belang is, onteien kan word.”

“Maar die bestaande eienaar moet dan in so ‘n mate vergoed word dat hulle die bestaande besigheid net in ‘n ander bestemming voort kan sit.

Wanneer openbare belang so wyd en vaag soos in hierdie voorgestelde wysiging beskryf word, kan pensioene, huise en beleggings ook sonder enige vergoeding afgeneem word.”

Die publiek het nog tot die einde van dié maand geleentheid om oor die voorgestelde wetswysiging kommentaar te lewer. TLU SA het ‘n platform geskep waar Suid-Afrikaners oor die wet kan kommentaar lewer. Die kommentaar wat deur TLU SA se platform gelewer word sal ook deel van TLU SA se mondelinge voorlegging aan die parlement vorm.

“Dit is van uiterste belang dat die publiek hulle teenkanting hieroor uitspreek deur deel te neem aan die proses van kommentaar.”

Die platform vir kommentaar is by hierdie skakel beskikbaar: https://www.tlu.co.za/onteieningswet/

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TLU wil Belastingwet aanpas Agri SA on Expropriation Bill ■ Roelof de Jonge Die Transvaalse Landbou Unie (TLU) SA het hierdie week ‘n veldtog bekendgestel om die Belastingwet so te verander dat alle Suid-Afrikaners enige veiligheidsuitgawes teen belasting kan verhaal.

Afdeling 23(b) van die Belastingwet verhoed Suid-Afrikaners om veiligheidsuitgawes van inkomstebelasting af te trek. Hoewel besighede reeds sodanige uitgawes kan aftrek, wil TLU SA met hierdie veldtog spesifiek daarop fokus om verbruikers, as deel van die landbou waardeketting, ook hierdie noodsaaklike voordeel te bied.

TLU SA het ‘n lys saamgestel van noodsaaklike uitgawes wat elke huishouding in Suid-Afrika van belasting behoort te kan verhaal. Hierdie lys sluit veiligheidsmure, sekuriteitskameras, alarms, elektriese omheining, lemmetjiesdraad, waghonde, 24-uur monitering en gewapende reaksie dienste, huisversekering, ander tuissekuriteitsmaatreëls en -toerusting, en uitgawes verwant aan die onderhouding van die bogenoemde items.

Die lys sal aangepas word soos wat TLU SA terugvoer ontvang oor bykomende veiligheidsuitgawes.

“Talle Suid-Afrikaners se vryheid is al aangetas

omdat hulle slagoffers van misdaad was,” sê Henry Geldenhuys, die president van TLU SA. “Die Grondwet vereis dat die staat ons beskerm teen sulke aanvalle. Dat die staat geheel en al hierin misluk het, is ooglopend deur net na die staat se eie statistiek te kyk.”

Volgens StatsSA (Statistieke Suid-Afrika) is huisbraak of diefstal die nommer een misdaad in Suid-Afrika. ’n Beraamde 1,2 miljoen gevalle van huisbraak het in die 2019/20 statistiese jaar plaasgevind, en 891 000 huishoudings in ons land geraak. Suid-Afrikaners wat in afgeleë gebiede bly, soos dié op plase, is besonder kwesbaar, aangesien hulle vêr weg van enige vorm van bystand bly.

“In die lig van die uiterste gevaar waarin Suid-Afrikaners daagliks verkeer, is dit skandelik dat veiligheidsuitgawes wat deur die belastingbetaler aangegaan word om hulle woning te beveilig, nie van hulle inkomstebelasting afgetrek kan word nie,” het Geldenhuys gesê.

Volgens Afdeling 77 van die Grondwet het slegs die minister van finansies, Tito Mboweni, egter die mag om die bogenoemde wysiging in werking te stel.

Ondersteun hierdie petisie: https://www.tlu. co.za/vryheid-teen-misdaad/.

■ Roelof de Jonge Agri SA submitted its commentary on the Expropriation Bill electronically to the Portfolio Committee on Public Works and Infrastructure on the 22nd of February, according to Annelize Crosby who is the head of Agri SA’s Land Affairs. This was mandated by all the organisation’s affiliates.

Agri SA had commissioned two studies in support of its commentary, namely a study on the economic impact of an approach of zero compensation or minimal compensation, as well as a study on the impact of the Covid-19 pandemic on the agricultural sector.

“Agri SA also sought legal advice on the matter, which was used in compiling the written submission.”

Briefly, Agri SA’s submission entails the following highlights: • Agri SA represents the largest group of rural landowners and wishes to ensure a sustainable, viable sector.

• The farmers of today cannot alone be held liable for historic events and cannot be expected to carry the burden of Apartheid-era dispossessions.

• Agri SA remains firm in its support for free market principles.

• Landowners whose land is expropriated should always have the right to approach the courts.

• Reference is made to the study on the potential economic impact of zero compensation or minimal compensation, specifically the impact on capital formation, as well as the study on the impact of the pandemic on the agricultural sector.

• An international perspective is provided, namely that the constitutions of most countries require that compensation be paid. Reference is made to the United Nations Food and Agriculture Organisation’s study on best practice for compulsory acquisition of

property.

• The lessons learnt from Zimbabwe and Venezuela are shared to illustrate the disastrous effect that their land policies had on the respective economies.

• The implications in terms of potential loss of tax income for the government, as well as the potential negative impact on food security, are also highlighted • Commentary is provided on specific definitions and clauses, such as the definition of ‘expropriation’ and ‘public interest’ and the zero-compensation clauses.

• Agri SA believes strongly that landowners should immediately receive adequate and effective compensation, which will enable them to start again elsewhere, and that they should not be worse off because of expropriation.

Annelize Crosby, the head of Agri SA’s Land Affairs.

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TLU SA loods minimum Implement Rural Safety Strategy now ■ loon dispuut Roelof de Jonge

■ Roelof de Jonge Die Transvaalse Landbou Unie van Suid-Afrika (TLU SA) het ‘n beroep gedoen op landbouers, plaaswerkers en ander Suid-Afrikaners wat besef dat ‘n minimum loon vir plaaswerkers op die oomblik nie haalbaar is nie, om ‘n dispuut daaroor te steun en sodoende grootskaalse werkloosheid en ‘n styging in voedselpryse teen te werk.

TLU SA het ‘n dispuut verklaar met die minister van arbeid en indiensneming, Thulas Nxesi, in verband met die voorgestelde verhoogde minimum loon vir plaaswerkers. Die dispuut word deur die VF Plus, LWO Werkgewersorganisasie en ander rolspelers in landbou ondersteun.

Die minister het ontvangs erken van die aanvanklike skrywe hieroor maar ‘n datum om die aangeleentheid te bespreek is nog nie vasgestel nie. TLU SA sal tydens die vergadering versoek dat die implementering van die minimum loon vir plaaswerkers op ys geplaas word totdat die dispuut bygelê is.

Die pleidooi aan die regering het sedertdien op dowe ore geval met die minimum loon wat reeds in die tweede laaste week van Februarie bekend gemaak is.

“Hierdie aangeleentheid is nie net ‘n landbou-probleem nie, maar inderdaad ‘n Suid-Afrika probleem,” sê Henry Geldenhuys, die president van TLU SA. “As die boerdery nie wins maak nie, moet daar aanpassings gemaak word, hetsy om die loonrekening te verminder deur werkers af te lê of heeltemal weg te doen met arbeidsintensiewe vertakkings soos

groente- of wynverbouing. Dit sal dan lei tot ‘n styging in die vraag, maar ‘n tekort in lewering van hierdie produkte, wat volgens ekonomiese beginsels lei tot verhoogde pryse.”

Belangstellende persone kan die dispuut steun by hierdie skakel: https:// www.tlu.co.za/minimumloon/ TLU SA vermoed dat die saak tot ‘n regsaksie sal lei en enige persoon wat graag wil bydra om die regsproses finansieël te ondersteun kan inbetalings aan die TLU SA se Eiendomsregfonds maak.

“Die uitnodiging aan ander rolspelers in die landbou waardeketting om hierdie dilemma gesamentlik te hanteer, is steeds op die tafel,” het Geldenhuys gesê.

Henry Geldenhuys, die president van TLU SA

“We don’t need more or any new plans to curb rural crime, just implement the Rural Safety Strategy that was launched in 2019,” said Uys van der Westhuijzen, the chair of Agri SA’s Centre of Excellence on Rural Safety.

This was Agri SA’s message to a workshop of the Inter-Ministerial Committee (IMC) on rural and urban safety recently.

In its presentation, Agri SA provided an overview of the most important aspects of the strategy to combat rural crime more effectively.

Challenges that can lead to conflict, such as trespassing, land invasions and unlawful protests, were highlighted.

The criminal justice system is one of the most important elements in the battle to combat rural crime. Various aspects thereof are currently ineffective. The shortcomings have been identified and proposals were made to address them.

Agri SA has lodged complaints the previous year with the Human Rights Commission (SAHRC), as well as the Independent Electoral Commission (IEC), in relation to hate speech by members of the EFF aimed at the farming community during the court proceedings in Senekal on the 16th of October 2020.

During a meeting with the SAHRC, Agri SA was informed that they had received various complaints in this regard, which were presently under investigation. It is regrettable, however, that despite several enquiries, the IEC has not yet responded to Agri SA’s written complaints. Agri SA will continue to follow up these com-

plaints with the IEC. Farm attacks have a devastating impact on farming communities, as well as on human rights where citizens of this country have the right to be free of all forms of violence.

This is something the agricultural community has not experienced over the past few years.

During the meeting with the SAHRC, the commission was reminded of the critical role that agriculture plays in food production for the nation, with a warning that should the country lose its capacity to produce food, the result could be starvation, which holds a Uys van der Westhuijzen, the chair of Agri SA’s Centre of Excellence on Rural Safety. risk for national stability.

“Agri SA is also of the opinion that the Rural agriculture organisations, as well as Safety Strategy could prevent most organisations with an interest in rural rural crime, including farm attacks areas, provided at the workshop will and murders, if it is implemented now be consolidated into a report for fully and the necessary resources are consideration by the IMC. The IMC made available,” said Van der West- will then make proposals to the govhuijzen. ernment, also regarding to further “We are concerned, however, that handling of its proposals to combat the most important elements of the rural crime more effectively. strategy, which should be in place Van der Westhuijzen said that by the end of March 2021, will not Agri SA appreciates minister Thoko be implemented. For this reason, we Didiza’s condemnation of the recent call on the police management to farm attack in Crowder near Umkattend urgently to the implementa- homazi in KwaZulu-Natal. tion of these elements. Agri SA also “Agri SA also welcomes the minexpressed its support for the strategy ister’s recognition of the important and assured the police of its cooper- role that farmers and farm workers ation in ensuring more effective im- play in sustainable food production plementation of the strategy.” in South Africa and the African conThe inputs that other organised tinent.”

Hand-picked cotton concerns ■ The Farming Portal The Center for Global Policy in December released a damning report detailing how ethnic minority labourers in the Xinjiang region in China, which produces 85% of the country’s and 20% of the world’s cotton, are forced to pick cotton by hand through state-mandated schemes and which potentially could have devastating consequences for global supply chains that use the region’s cotton as a raw material.

In January, the British government indicated that they were going to tighten up controls regarding imports from the Xinjiang region and that companies will have to publish supply chain transparency reports or face the risk of being fined.

This was followed by the US and Canada both banning imports from the Xinjiang region.

Brian Brink, executive director of the Textile Federation (Texfed), says considering South Africa’s close and tight diplomatic relationship with China, the chances are slim that there will even be a mild rebuke from South Africa regarding China’s alleged human rights’ record or practices.

“Given that the SA government has been unsuccessful in even addressing illegal, undervalued clothing imports from China over the last two decades, to expect them to control the origin of the cotton content of clothing originating from China is, I suspect, a rather forlorn hope.”

Furthermore, Brink believes that as a consequence of countries like the US’s embargo on cotton goods from Xinjiang, there will be increased volumes of forced-labour produced products seeking alternate markets throughout the world.

This, of course, does not bode well for countries like South Africa where illegal, undervalued clothing imports is already a big problem.

Paul Theron, acting executive director of the Apparel Manufacturers of South Africa (AMSA), says it is a complex issue with apparent allegations, but no proof, although the industry is highly suspicious of China’s practices.

South Africa’s prominent clothing retailers, including Woolworths, Mr Price Group, Pepkor, The Foschini Group and Truworths International, were approached for comment on the policies they have in place regarding the raw cotton used in their merchandise.

According to Woolworths spokesperson, Silindile Gumede, the group has no supplier relationships in

China’s Xinjiang province and do not source finished garments made using slave labour from the region or from North Korea. “We audit our suppliers via independent third parties to ensure that the group’s own Code of Business Practices is upheld and are committed to partnering with suppliers and industry stakeholders to protect and improve conditions and promote worker empowerment. Woolworths does not under any circumstances tolerate forced labour, and we will act quickly to address unjust labour practices should concerns arise within our supplier base.”

Pepkor, the holding company of retailers like PEP and Ackermans, says its sourcing office in China follows a process which includes inspecting and rating compliance levels of suppliers on a bi-annual basis to ensure that the group complies with the necessary labour laws and regulations across its value chain. The group says none of its retailers source from the Xinjiang province.

The Mr Price Group, through its Group Head of Investor Relations and Corporate Communications, Matthew Marriner, declined to participate for the purpose of the article. The Foschini Group and Truworths International did not respond to the request for comment.