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Land Reform department budget below last year’s forecast, to buy 208 530 ha

Land Reform department budget below last year’s forecast, to buy 208 530 ha

Photo by Duane Daws

8th May 2015

By: Tracy Hancock

Creamer Media Contributing Editor

  

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The Department of Rural Development and Land Reform (DRDLR) has allocated R9.379-billion for the 2015/16 financial year, below the R9.574-billion estimated last year by the DRDLR for the period.

Rural Development and Land Reform Minister Gugile Nkwinti said during his budget speech on Friday that, of the 2015/16 budget, administration had been allocated 1.264-billion, National Geomatics Management Services 799-million, rural development R1.975-billion, restitution R2.602-billion and land reform 2.737-billion.

For 2016/17 these figure were expected to increase to 1.318-billion, 830-million, 2.187-billion, 3.181-billion and 2.874-billion, respectively, for a budget of R10.392-billion. In 2017/18, the department would up this spend to 1.389-billion, 875-million, 2.263-billion, R3.340-billion and R3.019-billion, respectively, for a budget of R10.888-billion.

In the 2015/16 financial year, the department intended to acquire 208 530 ha at a cost of R1.253-billion compared with the 209 580 hectares, at a cost of R1.2-billion acquired during the 2014/15 financial year.

Of the R1.253-billion, R141.19-million would be spent on acquiring land for farm dwellers and R132.19-million for labour tenants, explained Rural Development and Land Reform Deputy Minister Mcebisi Skwatsha during his budget speech.

This was in line with Chapter 6 of the National Development Plan (NDP), which aimed to transfer 20% of agricultural land to black people by 2030.
 
“Twenty per cent of the 82-million hectares of agricultural land (in existence) translates into 16.4-million hectares,” said Skwatsha, noting that from 1994 to December 2014 the State had transferred 7.5-million hectares, or 46%, of the 16.4-million hectares to black farmers.

“To meet the NDP target we need to transfer another 8.9-million hectares of agricultural land by 2030,” Skwatsha stressed.

Of the 7.5-million hectares already transferred, 4.4-million hectares was redistributed land and 3.1-million hectares was restitution in settlement of land claims.

Since the inception of the Recapitalisation and Development Programme (RADP) in 2010, R3.2-billion had been spent on recapitalisation.

“The programme was designed to help struggling land reform farms that have received insufficient support, but have the potential to become successful. These farms were supposed to receive technical and financial support from the department,” noted Skwatsha.

The RADP had been reviewed by the Department of Monitoring and Evaluation in the Presidency, which had made proposals to make the programme more effective.

The Portfolio Committee on Rural Development and Land Reform had been briefed on the findings, challenges and the turnaround plan.

“Much attention has been given to ensure that we make well considered decisions on the selection of farms to be acquired and the beneficiaries of allocated farms, as well as which farms to recapitalize,” Skwatsha noted, highlighting the National Land Allocation and Recapitalisation Control Committee (NLARCC).

Established in 2013, the NLARCC was responsible for ensuring that land reform proposals for acquisition, allocation, recapitalisation and development were consistent with government policy; had the support of all the necessary role-players and stakeholders; and would contribute favourably towards local economic and social development.

The committee also needed to ensure inter-departmental coordination, cooperation and budgetary alignment, so that the farms the DRDLR acquired and recapitalised became projects of the whole department.

AGRI-PARKS
Government was in the process of establishing agri-parks and a national launch of the concept was imminent.

“We intend to put what we have learned from the land acquisition and the recapitalisation and development programmes to good use when we establish the agri-parks,” explained Skwatsha.

Of the R2-billion the DRDLR had allocated to the development of agri-parks, R626.3-million was intended for acquisition of 185 000 ha of strategically located land for smallholder farmers who would produce within the agri-parks.

The recapitalisation and development of farms that formed part of the agri-parks would be dedicated R362.8-million.

“Money will also be allocated for production of key commodities, identified in the Agricultural Policy Action Plan for the agri-parks, by rural producers outside of the land reform farms. This includes rural village-based producers and owners of their own land,” Skwatsha advised.

He added that the department was also acting on another NDP proposal, the creation of District Land Committees, which were now called District Land Reform Committees (DLRCs).

The DLRCs would be responsible for identifying 20% of the commercial agricultural land in their district and giving commercial farmers the option of assisting its transfer to black farmers.

So far, the DRDLR had established the committees in 40 of 44 identified districts and hoped to complete the process in weeks.
 
“The department wants to ensure that these committees are representative of all key interest groups in each district, including organisations of established farmers, organisations of emerging farmers, workers’ organisations, municipalities, civil society and a person seconded by the Minister,” outlined Skwatsha, adding that the Minister would appoint a chairperson after recommendation from the DLRC.

Further, the department would give administrative and secretariat assistance and training to the committees.

LAND CLAIMS
This year, the Commission on Restitution and Land Rights aimed to settle 1 445 claims, while also improving the research of claims received in the first lodgment period.

In the 2014/15 financial year, 144 406 ha and R1-billion in financial compensation was awarded to 78 600 beneficiaries from 15 456 households.

“To cope with the number of claims the commission is receiving in the current lodgment period, an electronic lodgment system has been developed. Claims can be submitted at any of the 14 lodgment offices located in the nine provinces,” Skwatsha pointed out.

The commission had also procured mobile lodgment offices – buses equipped with technology to process applications for land claims on site, with two all-terrain trucks acquired to support the mobile offices.

The commission was now, therefore, able to reach the most remote areas of South Africa and had prepared a schedule of communities to be visited over the next four years, with Skwatsha at the launch of the mobile offices, in Libode, in the Eastern Cape, on Thursday.

Edited by Creamer Media Reporter

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