SMALLHOLDER DEVELOPMENT DIRECTORATE: SMALL HOLDER DEVELOPMENT DATE: 20 OCTOBER 2011

BACKGROUND NB to note that South Africa’s farmers, subsistence, smallholder and commercial, all play an important role; a role with various dimensions Smallholder sector produces less and sales may be relatively small, this sector plays a pivotal role in the communities where smallholder farmers operate. Main reasons for production is food production, income generation, employment creation, provide a social safety net, capital formation and for various cultural reasons. Commercial Agricultural Sector is well developed and private and public services rendered to this component of the Sector are comparable with the best in the world. Subsistence and smallholder farmers and their plight is often exacerbated by the fact that they are usually totally dependent on public services Emphasis on subsistence and small holder producers due to their ability to: -Promote food security -Market access -Job creation and sustainable livelihoods. 2

FARMER DEFINITIONS (3 categories) Subsistence/resource-poor farmers NB: USE OF PRODUCER VS FARMER - Farmers that, due to resource constraints, and using limited technology, produce food to supplement their household food needs, with little or no selling of produce to the market. Smallholder farmers - The smallholder farmers produce for household consumption and markets, earn revenue from their farming businesses as a source of income for the family. Farming is erratic and not always the main source of income; diverse non-farm sources of income exist to sustain the family. There is potential to expand operations and graduate to commercial farmers, if provided comprehensive support (technical, financial and managerial instruments). Commercial farmers - Farmer’s production primarily for the market and makes considerable living from farming. Classification as commercial: farm income must exceed a minimum economic size. Due to the expensive nature of capital formation and implementation of technological processes, the landowners of such farms are often large in scale to counteract the low returns on investment of the sector. 3

SMALLHOLDER PRODUCER SUPPORT MANDATE DAFF is committed to the following national and international agendas: The CAADP framework is built around 4 main technical pillars: Expanding the area under sustainable land management and reliable water control systems- reduce fertility loss & resource (land, forestry, water) degradation: smallholder & commercial sectors. Improving rural infrastructure and trade-related capacities for market access – NGP?. Increasing food supply and reducing hunger: Zero Hunger Plan?? Expanding agricultural research and the dissemination and adoption of technology - FARA. Realization of the MDG 1 - Eradication of extreme poverty and hunger by 2015 Maputo AU Declaration on Agriculture and Food Security in Africa of 2003 Contributing meaningfully to the realization of SA government’s Programme of Action – 12 Outcomes, particularly outcomes 4, 7 & 10 (4 – jobs; 7 – support & develop smallholder producers & 10 – enhanced environmental assets & natural resources). 4

PRODUCER SUPPORT MANDATE Sections 27 (1) (b) and 32 (1) (a) of the Constitution, 1996, right to access food & information. Contributing to the New Growth Path: 2020 target: opportunities for smallholder producers, jobs in agro-processing & improved conditions for farm workers. Support to smallholder producers - ensures food security, full utilization of resources, e.g. land, job creation and the overall achievement of the Presidential Outcomes, in particular Outcome 7: outputs 1 and 5: target newly established smallholder producers by 2013/14 and 30% of producers organised into associations/ commodity groups for improved market access, respectively 5

12 OUTCOMES OUTCOMES Quality basic education 2. A long and healthy life for all South Africans 3. All people in South Africa are and feel safe 4. Decent employment through inclusive economic growth OUTCOMES Skilled and capable workforce to support an inclusive growth path 6. An efficient, competitive and responsive economic infrastructure network 7. Vibrant, equitable, sustainable rural communities contributing towards food security for all 8. Sustainable human settlements and improved quality of household life OUTCOMES Responsive, accountable, effective and efficient Local Government system 10.Project and enhance our environment assets and natural resources 11. Create a better South Africa, a better Africa and a better world 12. An efficient, effective and development oriented public service and an empowered, fair and inclusive citizenship 6

CAADP & CURRENT INITIATIVES: ZERO HUNGER INITIATIVE CAADP’s goals are that by 2015 Africa should less than 5 years from now: Attain food security; Improve agricultural productivity to attain a 6 percent annual growth rate - OECD; Develop dynamic regional and sub-regional agricultural markets; Integrate farmers into a market economy; and Achieve a more equitable distribution of wealth. Objectives of the Zero Hunger Programme Ensure access to food by the poor and vulnerable members of our society Improve food production capacity of resource poor farmers. Improve nutrition security of the citizens. Develop market channels through bulk government and private sector procurement of food linked to the emerging agricultural sector. Fostering partnerships with relevant stakeholders within the food supply chain. 7

CAADP & CURRENT INITIATIVES: SMALLHOLDER PRODUCERS SHP: FOCUS The former homelands - a large concentration of subsistence & smallholder producers with a sizable number of hectares of under-utilized arable land – estimated at 60%. Smallholder Producers - that will be established and supported on land acquired through land reform, in close collaboration with DRDLR. Conservation agriculture becomes critical due to its labour and cost saving ability The call for improved technology and better production systems – research Assumption for zero hunger: Subsistence producers may contribute 20% and smallholder producers should contribute 80% of their produce towards the programme. 8

CAADP & CURRENT INITIATIVES: SHD STRATEGIC PLAN Purpose of the SHSP Need for different stakeholders to act coherently towards support & development of smallholder priority areas. Identifying where the majority of smallholder farmers are – farmer register? -Improving farmer support at individual level: focused support through current programmes -Scheme-based and project-based interventions: schemes to impact on groups at the same time -Systemic interventions: economic environment conducive for smallholder development Reprioritise spending to improve food security and agrarian reform at impact level Ensure development, support, M & E and reporting to relevant structures. 9

CAADP & CURRENT INITIATIVES: SHD STRATEGIC PLAN Level 3 Commercial producers Level 2 Smallholder producers – home consumption and sale SP1 SP2 SP3 Semi- commercial Level1 Subsistence producers – own consumption 10

CAADP & CURRENT INITIATIVES: CASP & ILIMA / LETSEMA PILLARS CASP On and off farm infrastructure; Knowledge and information management; Technical and advisory services; Training and capacity building; Market business and development; and Financial services. ILIMA/LETSEMA To reduce poverty; To increase employment opportunities in the agriculture sector; To cope with the escalating food prices; To improve food production both at household and national level. 11

AVAILABLE FUNDING WITHIN DAFF Funds from equitable share, Division of revenue grants and other programmes within DAFF Equitable share: 12 DAFF Programmes 2011/122012/132013/14 CASP1,029,3211,148,2871,314,843 Ilima/Letsema400,000420,000443,100 Land Care57,772115,661108,997 Totals1,487,0931,683,8491,866,940

PROVINCIAL AGRICULTURE PAYMENTS AS AT 31 AUGUST /12 FINANCIAL YEAR Province Main appropriationPayments to date % Actual payments against Main Appropriation Projected outcome on payments % Projected outcome against Main Appropriation Projected (over)/under against Main Appropriation R thousand Eastern Cape1,509,785563, % 1,481, % 28,397 Free State519,341195, % 519, % – Gauteng489,850179, % 506, %(17,044) KwaZulu-Natal2,460,585825, % 2,478, %(18,117) Limpopo1,494,504536, % 1,523, %(29,459) Mpumalanga969,111298, % 968, %988 Northern Cape357,084125, % 358, %(1,296) North West758,835220, % 768, %(10,031) Western Cape501,718192, % 503, %(2,100) Total9,060,8133,136, %9,109, %(48,662)

END IT IS ESTIMATED THAT 80% OF FARMERS IN AFRICA ARE SMALLHOLDER FARMERS – ON ± 2HA NEED FOR LINKAGES AND INCLUSIVE PLANNING TO ACHIEVE THE SET DETAILS STATED ABOVE THANK YOU 14