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.
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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.
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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 50 000
smallholder producers & 10 – enhanced environmental assets & natural resources).
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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 300 000 smallholder
producers, 145 000 jobs in agro-processing & improved conditions for 660 000 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 50 000 newly established
smallholder producers by 2013/14 and 30% of producers organised into associations/
commodity groups for improved market access, respectively
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12 OUTCOMES
OUTCOMES 1 - 4
1.
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 5 - 8
OUTCOMES 9 - 12
5. Skilled and capable
workforce to support an
inclusive growth path
9. Responsive,
accountable, effective
and efficient Local
Government system
6. An efficient,
competitive and
responsive economic
infrastructure network
10.Project and enhance our
environment assets and
natural resources
7. Vibrant, equitable,
sustainable rural communities
contributing towards food
security for all
8. Sustainable human
settlements and improved
quality of household life
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
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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.
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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.
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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.
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CAADP & CURRENT INITIATIVES: SHD STRATEGIC PLAN
Level 3
Level 2
Level1
• Commercial producers
• Smallholder producers – home consumption and sale
• SP1
SP2
SP3
Semi- commercial
• Subsistence producers – own consumption
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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.
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AVAILABLE FUNDING WITHIN DAFF
• Funds from equitable share, Division of revenue grants and other programmes within
DAFF
DAFF
Programmes
2011/12
2012/13
2013/14
CASP
1,029,321
1,148,287
1,314,843
Ilima/Letsema
400,000
420,000
443,100
Land Care
57,772
115,661
108,997
Totals
1,487,093
1,683,849
1,866,940
• Equitable share:
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PROVINCIAL AGRICULTURE PAYMENTS AS AT 31 AUGUST
2011
2011/12 FINANCIAL YEAR
Province
Main appropriation
Payments to date
R thousand
Eastern Cape
1,509,785
% Actual payments
% Projected
Projected (over)/under
Projected outcome
against Main
outcome against
against Main
on payments
Appropriation
Main Appropriation
Appropriation
563,350
1,481,388
37.3%
Free State
519,341
195,225
Gauteng
489,850
179,163
KwaZulu-Natal
2,460,585
825,962
Limpopo
1,494,504
536,890
Mpumalanga
969,111
298,361
Northern Cape
357,084
125,219
North West
758,835
220,349
Western Cape
501,718
192,325
9,060,813
3,136,844
Total
37.6%
36.6%
33.6%
35.9%
30.8%
35.1%
29.0%
38.3%
34.6%
28,397
98.1%
519,341
100.0%
–
506,894
103.5%
(17,044)
2,478,702
100.7%
(18,117)
1,523,963
102.0%
(29,459)
968,123
99.9%
988
358,380
100.4%
(1,296)
768,866
101.3%
(10,031)
503,818
100.4%
(2,100)
9,109,475
100.5%
(48,662)
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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
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