Agri SA welcomes agri budget, but suggests more accountability with grants

Industry body Agri SA welcomes Agriculture Minister John Steenhuisen’s budget allocation dedicated to strengthening the agriculture sector, particularly through supporting smallholder farmers and boosting exports.

Agri SA CEO Johann Kotzé says enhancing biosecurity measures, as committed to by Steenhuisen, also bode well for the sector.

He notes, however, that there are areas for enhancement, including ensuring accountability in grant allocation, improving extension services, modernising legislation and enhancing interdepartmental collaboration.

Kotzé explains that the allocation of R1.7-billion to support more than 6 000 smallholder farmers across the country is a commendable effort and should create about 3 000 jobs and encourage rural development.

Additionally, the Ilama/Letsame programme will allocate R448-million to support more than 67 000 vulnerable households with food production, which should create another 9 461 jobs.

“The budget underscores the robust growth in agricultural exports, which achieved an increase of 5% in dollar terms and 12% in rand terms over the past five years.

“The opening of new markets for avocados to Japan, China and India, as well as fresh beef and lamb to Iran, exemplifies the proactive approach towards expanding South Africa’s agriculture footprint globally,” Agri SA states.

The organisation deems the blended finance scheme and the Agro-Energy Fund as critical measures to increase access to affordable finance for farmers and support energy-intensive agricultural activities.

These schemes, in partnership with financial institutions, have already made significant investments, which have helped to facilitate the purchase of capital equipment and infrastructure for farming and agroprocessing.

Moreover, Kotzé says the budget’s allocation of R10-million for the National Biosecurity Hub Programme is a vital step towards enhancing sanitary and phytosanitary capacities.

“The proposed track-and-trace system for livestock will improve biosecurity measures and help combat stock theft, ensuring the safety and quality of agricultural products,” he adds.

Recognising the impact of natural disasters on agriculture, Agri SA explains the budget emphasises the need for improved disaster preparedness and response.

This focus will help mitigate risks associated with veld fires, floods and other natural calamities, safeguarding the agricultural sector’s resilience.

However, there are areas requiring more focus. Agri SA cites oversight reports indicating concerns about the misallocation of funds intended for farmers. The budget acknowledges the need for better planning, accountability and proper reporting against targets.

“Ensuring rigorous monitoring and evaluation will be essential to guarantee that grants reach the intended beneficiaries and are used effectively,” Kotzé emphasises.

While the importance of extension officers is recognised, there is a pressing need to improve both the quantity and quality of these services, Kotzé adds.

“The budget suggests exploring public-private partnerships to enhance extension services, providing farmers with the necessary support and guidance.”

Further, many statutes governing the agricultural sector are outdated, hindering progress. The budget highlights the need to modernise the policy and regulatory environment, aligning it with international standards and harnessing new technologies to ensure global competitiveness.

Agri SA highlights that effective agricultural development relies on robust infrastructure, such as roads, railways and ports, which fall under various departments. Improved collaboration with these departments is crucial to support the agricultural sector adequately and unlock its full potential, Kotzé concludes.