PRELIMINARY FINDINGS FOR STRATEGIC PLANNING 2009 ITCA/MINMEC, Mpumalanga 17/18 August 2009

2 Minister’s key Strategic Planning priorities We are currently facing economic, food security, fuel and climate change challenges A clear categorisation and definition of black emerging farmers and the products and services required by each category is required: Subsistence - (starter packs, including protein source, chickens) Smallholders - (mostly emerging and need a graduating path) Commercial farmers – (need statistics on number of black commercial farmers) The current support systems do not cater adequately for black emerging farmers, thus the need to address the following: How should black farmers be funded?

3 Minister’s key Strategic Planning priorities All legislation should be reviewed, revived and revitalised from a transformation perspective Land and Agrarian Reform needs to be placed into an Act Markets NAMC role changed and 1997 deregulation left emerging farmers without empowering marketing support - what should be done to rectify this? Research & Technology Development is under funded and funds were taken away from ARC and OBP - need investment Information Statistics inadequate Extension Recovery ICT is not used fully or effectively

4 Minister’s key Strategic Planning priorities Natural resources Increase Land Care Water – escalate agricultural water rights at DWA Land reform has been isolated Finance Land Bank was never a development bank, access easy, but interest rates high The Agricultural Credit Board provided last resort lending, but was closed down Role of commercial banks What structure is required as the current national structure is top heavy, roles not all clear and does not follow the competencies required?

5 Guiding documents since BATAT 1995White Paper on Agriculture 2001Strategic Plan for South African Agriculture (President) 2002Integrated Food Security Strategy (Cabinet) 2004Comprehensive Agricultural Support Programme (DoA) 2006DoA – DLA Leadership Alignment Process Year Review of Sector Plan 2008Land and Agrarian Reform Project

6 Broadening Access to Agriculture Thrust (BATAT) An analysis of the last 15 years DoA Annual Reports and Budgets reveals that initiatives of transformation are notably seated in the Broadening of Access to Agriculture thrust (BATAT), developed as an initiative of MINMEC and which: recognised different roles of national and provincial departments focused on broadening access to those who lacked it previously A team was appointed to assess needs and design appropriate: Financial services Human resource development Technology development Delivery systems Marketing, and Agribusiness activities

7 BATAT findings Delivery system is key Priorities were: The training of farmers & extension officers, also Institutional reform, and information systems This required the reorientation of institutions to smallholder needs Twinning of new players with experienced Exposure visits to smallholder farming outside SA Dedicated communication strategy and A review of legislation

8 BATAT Way Forward Principles Change the negative attitude towards agriculture Govt marketing interventions to be directed at cause not symptoms State to compensate for high initial costs of developing the smallholder sector Conclusion National and provincial Depts of Agriculture must: develop the potential for small- and mediumholder agriculture Bring about market reorientation in this regard Participatory research and technology development, and Improve the role of agriculture

9 Agricultural Sector Plan 5-yr Review Recommendations Urgent Matters Needing Attention:  To ensure national and household food security;  aggressive pursuance of sustainable productivity;  Impact of Energy availability/ access and affordability on Agriculture  Impact of Climate Change on Agriculture and farmer resilience;  economic sustainability of strategic initiatives;  enhanced bio security (e.g. improved sanitary and phyto-sanitary systems);  accelerated land reform; and  comprehensive support services to agriculture.  Developing a viable model for Production of Small Scale farmers  Participation of vulnerable groups in the sector

10 LARPPrinciples LARP Principles LARP creates a partnered delivery paradigm for agricultural and other support services based upon the concept of “One-Stop Shop” service centres located close to land reform beneficiaries, its principles are: Concentrate on focus areas (farm dwellers, corridors, commodities etc) Aligned comprehensive support Cooperative government (joint planning, budgeting, approval & implementation) Decentralised implementation to lowest level Partnerships for delivery Sustainable individual project success

11 Provisional DAFF Focus Areas Twelve key areas for refocusing the department to more effectively meet the new strategic priorities and broader mandate of Agriculture, Forestry and Fisheries: 1.Corporate Services  Governance and registry 2.Finance  Agricultural development finance, subsistence, AgriBEE & Land Bank 3.Relationships, Partnerships and Communication  Domestic, continental and international 4.Trade, Marketing and Economics  Including domestic, continental and international trade 5.Production  Land, water sea

12 Provisional DAFF Focus Areas 6.Food Safety and Bio-Security  Focus on emerging farmer needs 7.Policy and Planning  Technical development  Research (fund/capacity)  Where to place Statistics, ICT and Information??? 8.Monitoring and Evaluation 9.Natural Resources  Land & Water use, climate change 10.[Forestry - covered in DTT integration. How to deal with provincial forestry offices?] 11.[Fisheries – under review & covered in DTT integration] 12.Transformation  AgriBEE, Agro-processing, Entrepreneurial Development, gender & youth

13 Thank you

14 Areas covered by BATAT Marketing training of farmers in the role of markets, policy, legislation and regulations Smallholder representation on statutory bodies Facilitation of added value agribusinesses and SME development Financial Services New AFAP more market related – private financial intermediaries more important Proposal for Council on Financial Assistance (HODs) to coordinate assistance policy not infringing on PDAs powers Credit, focused on small farmers provided by financial intermediaries Farmer Support Programme to provide non-financial support Graduation Farmer Support Scheme – independence of state M&E

15 Areas covered by BATAT Technology Development Pathway Participatory (new clients needs and indigenous knowledge) PDAs found traditional approach to research was not conducive to transformation Lack of policy and strategic management at institutions Ineffective liaison between research bodies and with their clients Recommended a national research strategy be formulated Technology Development Pathway be designed to balance basic, diagnostic, applied and adaptive research

16 Areas covered by BATAT Delivery Systems Key to transformation Coordination at local level with participation of local structures and farmer groups Regular and efficient advice through a group approach Single-line command structure for extension staff Regular training of extension staff and liaison between them Government to collect information on status and profile of black farmers Information system to disseminate and collect information Human Resource Development Priority to training of farmers, farm workers and extension agents Reorient management to smallholder and mediumholder agriculture Move away from training for employment to training for production

17 BATAT Way Forward Lead Programmes Development of disadvantaged farmer associations Addressing problems of agricultural colleges Nurturing the land Reorientation traiing of agric extension staff State guarantee scheme for smallholder scheme Non-credit based Farmer Support Programme Human Resource Development Programme Develop simple basic Agricultural Glossary Farmer training programme for emergent commercial farmers close to home Increasing market awareness Master Plan for technology development Financial assistance pilot projects

18 Agricultural Sector Plan 5-yr Review Recommendations continual dialogue and exchange theoretical and ideological perspectives endorse an effective partnership approach & avoid duplicate efforts establish a permanent Sector Strategy Implementation body develop a Sector Strategy Implementation Plan with clear achievable annual milestones and deliverables Subject Sector Strategy to biennial assessments Conduct comprehensive land audit

19 Agricultural Sector Plan 5-yr Review Recommendations Institute a comprehensive and fully funded land transfer programme via LARP Restructure delivery of support services to farmers- rely on joint public- private initiatives Recovery and co-ordination of extension services (in its broader sense) should be undertaken as a joint Public Private Partnership (PPP). Capacitate Government agricultural agencies Link young graduates to facilitate the entry of young individuals into agriculture Government should institute an internationally benchmarked investment programme in public infrastructure

20 Agricultural Sector Plan 5-yr Review Recommendations Introduce Departmental Cluster System which will deliver on the recommendation expand the scope of the Strategic Plan and contingency planning to SADC regional partners The revised Agricultural Trade and Tariff Policy should be aggressively implemented Improve market access at international, national, local, and support informal markets Government and Private sector should increase Research and Development Funding to international bench marks Urgent attention to functioning of the Registrar of Agricultural Products. Improve participation at standard setting bodies and monitoring Sanitary and Phytosanitary measures instituted by other member countries

21 Agricultural Sector Plan 5-yr Review Recommendations Sector stakeholders to utilise statutory levy funding for empowerment, research, market development, information and consumer education The NAMC to conduct an annual review of the implementation of all projects funded by the statutory Levies Implement recommendations of Review of the Marketing of Agricultural Products Articulate economic, natural resource and social sustainability implications in all new strategic agricultural projects Develop system to provide comprehensive information on South Africa’s natural resource status, livestock numbers, land reform transfers and labour in agriculture Systematic census on small scale farming

22 Agricultural Sector Plan 5-yr Review Recommendations Implement management and funding of each of the Sector Strategy priority programmes Government should commit resources and consider hiring in professional management, including private sector, retired executives locally and internationally, to run these Additional funding should be sourced to improve human capital development and skills in the sector ensure sound labour practices in the sector: Improve Crime Prevention Amend the old Sector Plan after the review process has been completed

23 Glossary BATAT- Broadening Access to Agriculture Thrust DAFF – Department of Agriculture, Forestry and Fisheries DoA – Department of Agriculture DLA – Department of Land Affairs DTT – Departmental Task Teams SMEs - Small and medium scale enterprises AFAP- Agricultural Finance Assistance Programme HOD- Head of Department OBP – Onderstepoort Biological Products PDAs- Provincial Departments of Agriculture NAMC – National Agricultural Marketing Council SADC – Southern African Development Community