1. The National Development Plan IN ACTION or NOT??

2.  The NDP recommendations (Chapter 6)  Reasons for commercial farmers to contribute/participate  The NAMC process  Pillars of successful land reform  Successful projects: Bosveld Group  Conclusion

3.  What needs to be done  Agricultural development based on land reform, employment creation ……..  Expansion of irrigated agriculture and dry land production, …… beginning with smallholder farms.  Agriculture  Potential to create 1 million new jobs by 2030.  Expand irrigated agriculture.  Convert under-used land in communal areas and land reform projects into commercial production.  Pick and support commercial agriculture sectors and regions with highest potential for growth and employment.  Support job creation up and downstream.  Develop strategies to give new entrants access to product value chains and support from better resourced players.

4.  Security of tenure.  State funding.  Post settlement support - Land Bank.  Potential “winners” – Citrus.  Trade-offs and risks:  Tenure security for black farmers;  Government spending to small-scale farmers will not be increased.  Additional water and the efficient use thereof.  Potential to grow jobs through growth of large-scale commercial farmers limited.

5.  Recommendations:  Increase investment in water resource and irrigation infrastructure.  Invest substantially in providing innovative market linkages for small-scale farmers …  Preferential procurement mechanisms for new entrants….  Create tenure security for communal farmers …  Investigate different forms of financing and vesting of private property rights to land reform beneficiaries that does not hamper beneficiaries with high debt burden….  Greater support for innovative public-private partnerships …..that result in new growth, and new job opportunities.  Increase and refocus investment in research and development for the agricultural sector – train new extension officers…  Improve and extend skills development and training.  Investigate the location of extension and other agricultural services.  Who and how??

6.  Proposed Model  Enable more rapid transfer of land, without distorting markets and business confidence;  Ensure sustainable production, ensure that human capabilities precede land transfer;  Establish institutional arrangements to monitor land markets against undue opportunism, corruption and speculation;  Bring land transfer targets in line with fiscal and economic realities to ensure that land is successfully transferred.;  Offer white commercial farmers and industry bodies opportunities to significantly contribute …..;  Form district land committees, …… identify 20% of commercial agricultural land in district;  State pay 50%, participating farmers make shortfall up by cash or in kind contributions.  Participating farmers protected from losing their land and gain BEE status.

7.  Contribution to building of the Nation;  Compliance to laws?  Protection against loss of land/land claims?  Gaining of BEE status?  Cheaper financing?  Expansion of business – advantages of scale;  Recognition?  Retention of at least 50%;  Loosening up of own capital for further investment;  Economic sense

8.  On instruction of NPC;  Technical Committee to establish a model to accelerate successful land reform;  First meeting - January 2014;  Representatives of:  NPC,  Department of Rural Development,  Department of Agriculture,  Department of Rural Development and Land administration of Mpumalanga,  Land Bank,  Farmers Unions such as AgriSA, AFASA and Nerpo, and  Commercial Agriculture.

9.  Technical committee objectives:  Focus on Mpumalanga, but also roll out the project to other provinces;  Formulate proposal on composition of district committees;  Identify farms for the project, transfer of land in a short time at a fair value;  Establish a method of determining market valuations of farms;  Draft guidelines on identifying beneficiaries;  Identify beneficiaries with the help of AFASA and other organisations;  Identify partners/mentors;  Investigate possible funding structures  State grant system;  Landbank to develop proposed product (mortgage product);  Start at buying a first farm, and to streamline the process of acquisition, pre-settlement support as well as post-settlement support;  Implement and measure success/profitability of beneficiaries, wealth creation, job creation and poverty alleviation;  Report back in 6 months;

10. ObjectiveAchieved Proposal on composition of district committeesMarch 2014 Identify farms for the project7 Feb 2014 Establish a method of determining market valuations of farmsMarch 2014 Draft guidelines on identifying beneficiariesMay 2014 Identify beneficiaries Identify partners/mentors26 Feb 2014 Investigate possible funding structures  State grant system  Landbank product ??? 26 Feb 2014 Buy a first farm7 August 2014 Streamline  process of acquisition  pre-settlement support  post-settlement support  transfer of land Implement and measure  success/profitability of beneficiaries  wealth creation  job creation  poverty alleviation Report back in 6 months;

11.  Transfer of Land/shareholding;  Equality between shareholders;  Operational efficiency;  Sustainable production;  Reasonable price;  Choice of partners;  Broad base empowerment;  Commercial farmer involvement;  Access to markets and value chains  Human capacity;  Funding;  Grants;  Success/profitability of beneficiaries;  Wealth creation/poverty alleviation;  Job creation.

12. Bosveld Sitrus 69.8% LRAD STD Bank Workers trust 25,2% Morua Trust 5% Mabete Sitrus

13. Transfer of Land/shareholding; 58%/42% - 69%/31% Land owner and operational company Equality between shareholders; Equal representation on Board of Directors Equal contribution to shareholders loans Equal risk Operational efficiency; Workers stay workers Operational management by commercial farmer Sustainable production;No interruption Reasonable price;Yes, seller remain a partner Choice of partners;Commercial farmer had the choice Broad base empowerment;Yes, 128 employees Commercial farmer involvement;Yes, as partner and manager Access to markets and value-chainPart of the bigger Bosveld Group Human capacity;Ongoing training on all levels Funding;State, commercial bank and commercial farmer Grants;Limited access Success/profitability of beneficiaries; Own shares, capital growth with growth of company value Dividends Wealth creation/poverty alleviation; Yes, shares can be inherited by heirs Shareholders loans can be paid back Job creation;Retained employment Recruitment firstly from beneficiaries

14. Richmond Kopano Farming Bosveld Sitrus 100% Richmond 605 KT Moletele CPA

15. Transfer of Land/shareholding; Community is land owner Operational company leases the farm Equality between shareholders; Equal representation on Board of Directors Equal contribution to shareholders loans Equal risk Operational efficiency; Workers stay workers Operational management by commercial farmer Sustainable production;No interruption Reasonable price;Yes, willing seller, willing buyer Choice of partners;Contractual agreement between 2 willing parties Broad base empowerment;Moletele Community Access to markets and value-chainPart of the bigger Bosveld Group Commercial farmer involvement;Yes, as shareholder and operational manager Human capacity;Ongoing training on all levels Funding; Land – state Operational – shareholders and commercial bank No recapitalization funding Grants;Limited access Success/profitability of beneficiaries; Wealth creation/poverty alleviation; Own land, shares in operational company - capital growth Fixed and variable lease Dividends Job creation;Retained employment Recruitment firstly from beneficiaries

16.  NDP – good intentions, not specific enough;  NAMC project have ticked most boxes;  Unresolved issues;  State funding;  Landbank mandate;  District committees;  Election of beneficiaries/partners;  No golden bullet;  Willingness amongst commercial farmers;  Many examples of successful projects, initiated without force or threats – economic sense.

17. _____________________________________ Doing what we can best Trusting our partners for the rest _____________________________________