Agriculture and Land Agriculture is important for poverty alleviation and food security Land and water are important agric inputs Provinces play key role in Govt transformation & development agenda for the sector –Redress inequities in the access to farmer support services (markets, technology, information) –Implement regulatory services for animal health –support land reform programme

Agriculture Strong growth in Agriculture budgets –Combined budgets for national and provincial agriculture increase by 13,3% from R3,5 b to R4,1 b in 2003/04, by 8,9 percent over the MTEF –Provinces account for strong growth, rising by 17,6 percent to R3,1 b in 2003/04 –Spending on agriculture accounts for 1,9 percent of provincial budgets –Provinces that incorporated former homelands spent between 2,4% and 3,8% of budgets on agriculture

Agriculture Key agricultural programmes –extension/farmer support –Veterinary services –Agricultural research Provinces spent 41 percent on extension –It provides services that facilitates use of land –Spending rise by 12,5% per annum over the MTEF from R1 b in 2002/03 to R1,4 b in 2005/06 –Poorer provinces account for most of the spending –More than 70% is spent on personnel –Agric colleges support development of skills for agric personnel and farmers –Provinces spent <3% of budgets on training

Agriculture Personnel take up 2/3 of provincial agric budgets –Provinces that incorporated former homelands spent more than 70% on personnel –These provinces carry supernumaries –Excess personnel is mostly in extension programme and administration –Administration accounts for 20% of provincial budgets

Land Reform Strong growth in land reform grants on Land Affairs budget –Increases by an annual average of 26% from 0,8b in 2002/03 to R1,6 b in 2005/06 –Restitution accounts for the strong growth –Government will spent 2,9 billion between 2003/04 and 2005/06 on restitution –This will support increasing pace of settlement of claims in the medium term

Delivery of Land Total land transferred through restitution and redistribution approx 2 m hectares Restituition Programme –69,00 claims are lodged with the Commission –36,279 claims have been settled (>50%) –512,912 ha transferred to households –R1,2 b paid in compensation 1,5 m hectares transferred to 129,093 households under redistribution programme

Delivery of Support Services Land reform increases demand for support services Provinces need to increases the quantity and quality of farmer support services –increase in the number of skilled personnel –Access to start up capital for emerging farmers –Improved farm infrastructure – dipping tanks, fencing, rehabiltation of irrigation schemes –Increase the non-personnel recurrent spending provide for complimentary inputs – travelling by extension officers, vet services