Monday, 10 February 2014

What the agricultural sector expects from government

In the advent of the state of nation address and whilst political parties are gearing up for the general election, the farming community wants to remind political leaders about this sector’s potential to further contribute towards development and also indicate areas of vulnerability as well as solutions required to elevate the performance of the sector.
 
The National Development Plan and other government policies acknowledge the current and potential contribution that agriculture is making towards job creation in rural areas and along the value chain.  Apart from its valuable contribution towards trade and the generating of foreign income, local food production was and still is essential for maintaining national food security, a situation that should be treasured and enhanced.  In most rural areas commercial agriculture is still the dominant economic activity around which secondary development takes place.  It is foreseen that this situation will prevail for the foreseeable future.  South Africa is, however, not endowed with an abundance of high potential agricultural land and water resources.  This dictates circumspection with policy decisions which influence the allocation and utilisation of such resources.
 
The most important challenge for government is to foster confidence amongst all stake holders in the sector to invest or participate in the growth and expansion thereof.  Policy certainty and coherency were up to now areas of concern and in various circumstances experienced as being contradictory.  This situation was, unfortunately, exacerbated by unsatisfactory service delivery. 
 
The sector acknowledges the need to address the skewness in participation in the sector derived from policy interventions of the past.  Sector roleplayers are looking forward to a constructive partnership with government to effect such changes.  There are, however, areas of concern, i.e. the re-opening of land claims will inhibit investment due to uncertainty of future ownership; collateral values will be negatively affected if government deviate from paying market values for land; and statutory arrangements with regards to the labour market accelerate the use of labour saving practices. Agri SA’s views on these matters are on record, namely that less direct intervention and an assisted market approach is the preferred option to find solutions for these challenging issues. 
 
Agriculture also experiences increasing competing demands on natural resources from other sectors, impeding on the availability and quality thereof.  Water quality management and the protection of high potential land deserve more recognition.  The effective management thereof by relevant authorities at all levels should be a priority.
 
Sustaining and enhancing the competitiveness of the agricultural sector should be at the core of policies and programmes aimed at growing the future contributions of the sector.  The competitive edge of the sector depends inter alia on its cost of doing business, access to efficient and reliable infrastructure, access to cutting edge technology and information and efficient disaster risk management.  Agri SA has identified deficiencies and backlogs in this regard and engages with government on approaches and solutions thereto.  The same applies with respect to trade matters where issues such as an appropriate trade and tariff policy; complying with international norms and standards with regards to animal and plant health; and the review as well as optimal utilisation of existing and future trade agreements are interrogated.  In the light of this, Agri SA welcomes the recent progress that was made with the drafting and consultations around an Agriculture Policy Action Plan (APAP) which will serve as an important implementation mechanism, aligning agricultural initiatives with the National Development Plan.
 
Notwithstanding a good working relationship between the farming community and safety and security structures of government, the continued prevalence or crime and violence in rural areas remain unacceptably high.  Agri SA acknowledges the complexity of the phenomenon and will lend its full support to the implementation of all the elements of the rural safety strategy and the reservist policy in particular.  With regards to a wider concern about disrespect for law and order, we appeal to government to strengthen their resolve in seeking and implementing appropriate solutions and also to set an example in this regard.
 
Agri SA believes that the restoration of acceptable levels of economic growth represents the ultimate solution for South Africa. At the same time, a social development model should be developed and implemented to provide training to prospective entrepreneurs in order to ensure the establishment of a larger small business sector as well as high- quality employees. Our view is that such an approach will ensure a more even distribution of wealth and reduce the number of households primarily dependent on government grants.
 
It is of cardinal importance that everyone in South Africa unites behind a common vision for the country and supports an economic strategy that will lead to growth and job creation with a view to securing a better life for all citizens.
 
Source:  Agri SA  
http://www.agrisa.co.za/   #IFAMAFRICA

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