The budget speech and policy statement by the recently appointed John Steenhuisen as minister of agriculture, has been warmly received. This speech focused mainly, amongother things, on supporting smallholder farmers, boosting agricultural exports, and enhancing biosecurity measures, signalling a significant step forward for the industry.
A noteworthy aspect of the budget is the allocation of R1,741 billion to support nearly 6 023 smallholder producers across all nine provinces. This initiative is earmarked to create approximately 3 000 jobs, which will contribute positively to substantially rural development. The Ilima/Letsema programme will also allocate R448 million to support 67 492 vulnerable households with food production, aiming to generate 9 461 jobs.
The budget further reinforced the impressive growth in agricultural exports, achieving an annual increase of 5% in US dollar terms and 12% in rand terms over the past five years. The opening of new markets to Japan, China and India for avocados, and fresh beef and lamb to Iran, reflects a proactive approach towards expanding South Africa’s agricultural footprint globally.
Financial support and energy efficiency also receive significant attention. The blended finance scheme (BFS) and the Agro-Energy Fund (AEF) are noted as critical in increasing access to affordable finance and supporting energy-intensive agricultural activities. These schemes, in partnership with financial institutions, have already facilitated substantial investments, aiding the purchase of capital equipment and infrastructure for farming and agro-processing.
Enhancing biosecurity measures was another crucial component of the budget, where an allocation of R10 million for the National Biosecurity Hub Programme aims to bolster 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.
Furthermore, the budget also addressed the impact of natural disasters on agriculture, emphasising the need for improved disaster preparedness and response. This focus is intended to mitigate risks associated with veld fires, floods, and other natural calamities, thereby safeguarding the agricultural sector’s resilience.
However, there are areas requiring more attention, particularly in ensuring accountability and proper fund allocation. Concerns about the misallocation of funds intended for farmers have been acknowledged, with a call for better planning, accountability, and proper reporting against targets. Rigorous monitoring and evaluation will also be essential to guarantee that grants reach the intended beneficiaries and are utilised effectively.
The budget recognises the importance of extension officers but also highlights the need to improve both the quantity and quality of these services. Exploring public-private partnerships could enhance extension services, providing farmers with the necessary support and guidance.
Modernising legislation governing the agricultural sector is another priority. Many statutes are outdated, hindering progress. The budget underscores the need to align the policy and regulatory environment with international standards and harness new technologies to ensure global competitiveness.
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.
Overall, the budget allocation represents a comprehensive effort to address key areas within the agricultural sector, aiming for sustainable growth and development.
