1. PRESENTATION TO SELECT COMMITTEE ON FINANCE
COMMENTS ON THE FFC RECOMMENDATIONS
ON THE DIVISION OF REVENUE 2010/11
Prepared By:
Acting-Director General
Department of Agriculture, Forestry & Fisheries
PRETORIA, 0001
DATE: 07 AUGUST 2009

2. PRESENTATION OUTLINE
Department of Agriculture, Forestry and Fisheries (DAFF) Conditional Grants
Comments on FFC DORA Review
Grants MTEF budgets
DAFF proposal and Consolidation of Conditional Grants
Conclusion

3. DAFF CONDITIONAL GRANTS
The Department of Agriculture, Forestry and Fisheries has three conditional Grants, namely:
1. Comprehensive Agriculture Support Programme (CASP)
DORA Schedule 4 Conditional Grant
Post Settlement support
2. LandCare
DORA Schedule 5 Conditional Grant
National Resources Management
3 ILima/Letsema
Mechanisation and Production inputs
4. Disasters

4. Grants Objectives
To enhance Long-term sustainability and economic viability
To enhance national and household food security
To preserve and manage our natural resources
To generate employment opportunities
To Improve farming efficiency and
To reduce poverty.

5. SADC POSITION AND GOVERNMENT PRIORITIES
Maputo Declaration: Governments have committed themselves to allocate at least 10% of their national budgets to agriculture:
This objective in SA has not been reached yet; the status quo is:
2005/06 – 2006/07 = 3%
2007/08 – 2208/09 = 2%
South African Government Priorities, a framework to achieve this:
Creating Decent Work and Sustainable Livelihoods
Health
Education
Crime
Rural Development, Food Security and Land Reform

6. Comments on the Provincial Equitable Share (PES) Review
We welcome the recommendations by FFC:
Which ever option is taken (short/long term solution), the department shall be happy if the following are considered by the review;
In provinces the amount of equitable share going to agriculture has not been growing:
It is envisaged that this review will look at this and change the status quo.
The sector has been funding provincial mandates using conditional grants
Even though DORA deals with natural disasters in- year, the sector would like to propose a review that incorporates the fund onto the equitable share.

7. Comments in respect of public Infrastructure investments
The DAFF welcomes the recommendation to increase the quantum of investments in public infrastructure and agrees that planning is critical
We agree with the commission that increased infrastructure funding should be linked to basic services like water, health, agriculture, transport, in particular agro-logistics in our case.
We would insist that our infrastructure grants in CASP and LandCare be increased to respond to infrastructure needs of emerging farmers.
Baselines of agriculture in provinces are not improving, therefore CASP is not supplementing
The idea of an infrastructure maintenance strategy is supported as this will ensure sustainable jobs through our EPWP linked conditional grants

8. Comments with respect to Social Assistance Grants
A recommendation to increase social grants during this economic downturn is welcomed
A need for coordination:
Linking social grants to food production starter packs could be a long term sustainable solution to these grants.
Grants like CASP and EPWP linked support in Agriculture contributes enormously in cushioning the poor from increasing food prices.
Increased food production at local centers could reduce the risk of entitlement/dependency.
Increasing food production through agriculture funding would lead to a number of benefits that accrue to rural development.

9. CASP MTEF ALLOCATION 2009/10 TO 2011/12
Province
Column A
Column B
2009/10 Allocation
Forward Estimates
2010/11
2011/12
R'000
Eastern Cape
Free State
65 659
79 149
88 894
Gauteng
33 844
40 797
43 965
KwaZulu-Natal
Limpopo
Mpumalanga
70 892
85 456
95 691
Northern Cape
49 232
59 346
63 954
North West
91 518
Western Cape
57 640
69 481
78 476
Unallocated -
3 600
TOTAL

10. LANDCARE MTEF ALLOCATIONS 2009/10 TO 2011/12
Province
Column A
Column B
2009/10 Allocation
Forward Estimates
2010/11
2011/12
R'000
Eastern Cape
8 227
8 721
9 244
Free State
4 113
4 360
4 622
Gauteng
3 599
3 815
4 044
KwaZulu-Natal
Limpopo
7 713
8 176
8 667
Mpumalanga
4 627
4 904
5 198
Northern Cape
5 656
5 995
6 355
North West
6 170
6 540
6 932
Western Cape
3 085
3 270
3 466
TOTAL
51 417
54 502
57 772

11. CONSOLIDATING CONDITIONAL GRANTS
In line with previous recommendations the department is consolidating all its grants into a single one, CASP, as a Schedule 5 Grant of DORA in line with;
FFC of 1996 review and concerns on the proliferation of conditional grants
To ensure bigger and longer term impacting conditional grants, like infrastructure
Improved monitoring and oversight.
See illustration below of a single one stop grant

12. SINGLE COMPREHENSIVE SUPPORT SERVICES GRANT

13. CONDITIIONAL GRANTS MTEF 2009 to 2011
YEAR
CASP
LANDCARE
ILIMA/LETSIMA
TOTAL
2009/10
715 51 50
816million
2010/11
862 54
200
1,1billion
2011/12
979 57
400
1.4 billion
2.5 billion
162 million
650 million
3.3 billion
CASP include Extension Recovery Fund

14. THANK YOU!
SIYABONGA!
REALEBOGA!
HA KHENSA!
BAIE DANKIE!
SIYABULELA!