Agri SA is calling for urgent clarification of the correct wording and interpretation of the governing party’s decision, whereby the 50/50 proposal, which requires farmers to hand over half their land to their workers, has been accepted as African National Congress (ANC) policy. 

The agricultural industry association was responding to media reports that following the recent ANC National General Council meeting, Rural Development and Land Reform Minister Gugile Nkwinti had stated that the 50/50 proposal was now formally ANC policy. 

If landowners were prepared to give up 50% of their land, it would only be a matter of time before the State claimed the other half, warned business rights watchdog AfriBusiness.

“This is a very sensitive matter, which needs to be understood in context,” said Agri SA Agricultural Development Policy Committee chairperson Ernest Pringle in a statement on Tuesday.
 
Nkwinti’s original proposal amounted to a rigid, forced confiscation of 50% of every farm in favour of workers by applying a fixed formula, without any direct compensation being payable to landowners, said Pringle. However, Agri SA and many other stakeholders rejected this as unworkable, damaging to the sector and, possibly, unconstitutional. A viewpoint, Agri SA retained.
 
The Minister had since consulted with stakeholders and challenged organised agriculture to bring alternative proposals to the table to which Agri SA reacted positively. The agricultural industry association proposed alternatives that, in its view, were workable.

“During his budget speech, Nkwinti confirmed that he intended following a more flexible approach in accordance with the alternative proposals that he had received. He again confirmed at a meeting with organised agriculture on May 22 that landowners will be given the opportunity to choose their own partners, that no one-size-fits-all approach would apply and that incentives will be developed to encourage participation by landowners,” advised Agri SA in its statement.
 
As a result of these assurances, the association participated in a working group tasked to develop criteria for pilot projects, identifying pilot projects and monitoring the implementation thereof over four years.

Lessons learnt would determine further policy development, with projects based on voluntary participation and sound business principles.

A flexible approach was foreseen to accommodate the diversity of the sector, for which skills transfer, economic and environmental sustainability and sustained production were recognised as important considerations.

“It is still Agri SA’s expectation that this is indeed the basis on which the pilots will be run.  This assertion is in line with a presentation by a Ministerial task team made as recently as October 4,” said Pringle in a statement on Tuesday.
  
According to AfriBusiness national spokesperson Stefan Pieterse, Nkwinti’s policy would see farmers receive no compensation for their land. “Money received will be paid into a workers’ trust.”
 
“The principle established here is that the government could decide to take part of your property and give it to another,” said Pieterse. “Consequently, the government will not dwell on land only, but also impose on other asset classes.”
 
The adoption of this policy would create negative consequences for South Africa’s struggling economy, cautioned Pieterse. “Increased uncertainty about property ownership increases risks for both domestic and foreign investors. For this reason, the country’s economy cannot grow,” held AfriBusiness.
 
The watchdog believed the policy would not pass the constitutional test. “If necessary, AfriBusiness will assist its members to protect their ownership.”