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Johannesburg - Fasten your seat belts for a year in which overheated debates about land reform and uncertainty about the price of water will dominate the agriculture industry, reported Rapport
This is the advice of experts and managers of agricultural organisations on the challenges and risks that the sector will face this year.
In addition to concerns about political rhetoric during an election year and pressure on costs due to the weakening rand, there are also some positive prospects like more favourable summer grain crops and a windfall for fruit exporters due to the weaker rand.
It is expected that legislation such as the restitution of land rights amendment bill will come to a head this year, while Minister of Agriculture, Forestry and Fisheries Tina Joemat-Pettersson also proposed amendments to the Marketing Act, which agricultural organisations called "alarming".
"We are expecting that a lot of politicking relating to the right of ownership and the redistribution of land will rouse emotions, " said Hans van der Merwe, AgriSA's executive director, adding that it is a priority for the government to finalise this legislation before the election.
The way in which this legislation is introduced, will have a profound impact, said Dr John Purchase, CEO of the Agricultural Business Chamber Agbiz.
"It will not only have an impact on the transformation of the agricultural sector, but more specifically on investor confidence in this sector, where investment has come to a standstill during the past decade due to political uncertainty - despite an increase in net farming income."
Van der Merwe warned that stakeholders in the agriculture industry should remain calm in the face of emotionally charged debates about land.
"A country cannot merely focus on one of its assets, such as agricultural land, in its policy. If you shock confidence in one sector it affects the economy as a whole."
Purchase said if the political debate regarding land is approached in a constructive way, it could even lead to greater stability in the industry.
Agricultural experts warn that one of this year's big challenges will be dealing with a new policy framework on access to and the price of water.
In terms of amendments to the National Water Act water licenses of all water users will be reconsidered, because the government wants to ensure that unused allocated water is made available.
In addition the price of untreated water for agricultural purposes is expected to double. This makes an impact on the agricultural sector, which owns 62% of all water licenses.
"There is concern about policies regarding the allocation of water rights and this is an issue on which AgriSA intends to focus intensively this year," said Van der Merwe.
It seems that progress was beem made in the handling of one of the hot spots in 2013: The 50% increase in farm workers' minimum wages.
According to Van der Merwe the social dialogue on labour issues made some progress in 2013 and there is a mutual understanding of the challenges.
"Agriculture occupies less than 3% of the economy, but the sector employs up to 15% of the workforce. When there is pressure on the sector regarding higher wages, its structure would have to be changed to the use of a smaller workforce."
Although farmers are still wrestling with the impact of the drought in 2013, it seems a better rainy season is expected in the summer rainfall areas of North West and the Free State.
The rainfall of the past few weeks has improved prospects for maize and sunflower crops in these regions.
"The groundwater situation is, however, still not satisfactory and substantial follow-up rains will be needed to ensure a fair harvest in this drought-prone area is. In Mpumalanga it is even too wet in certain areas. Apart from that agricultural conditions across the country seem fairly favorable," said Purchase.
This is the advice of experts and managers of agricultural organisations on the challenges and risks that the sector will face this year.
In addition to concerns about political rhetoric during an election year and pressure on costs due to the weakening rand, there are also some positive prospects like more favourable summer grain crops and a windfall for fruit exporters due to the weaker rand.
It is expected that legislation such as the restitution of land rights amendment bill will come to a head this year, while Minister of Agriculture, Forestry and Fisheries Tina Joemat-Pettersson also proposed amendments to the Marketing Act, which agricultural organisations called "alarming".
"We are expecting that a lot of politicking relating to the right of ownership and the redistribution of land will rouse emotions, " said Hans van der Merwe, AgriSA's executive director, adding that it is a priority for the government to finalise this legislation before the election.
The way in which this legislation is introduced, will have a profound impact, said Dr John Purchase, CEO of the Agricultural Business Chamber Agbiz.
"It will not only have an impact on the transformation of the agricultural sector, but more specifically on investor confidence in this sector, where investment has come to a standstill during the past decade due to political uncertainty - despite an increase in net farming income."
Van der Merwe warned that stakeholders in the agriculture industry should remain calm in the face of emotionally charged debates about land.
"A country cannot merely focus on one of its assets, such as agricultural land, in its policy. If you shock confidence in one sector it affects the economy as a whole."
Purchase said if the political debate regarding land is approached in a constructive way, it could even lead to greater stability in the industry.
Agricultural experts warn that one of this year's big challenges will be dealing with a new policy framework on access to and the price of water.
In terms of amendments to the National Water Act water licenses of all water users will be reconsidered, because the government wants to ensure that unused allocated water is made available.
In addition the price of untreated water for agricultural purposes is expected to double. This makes an impact on the agricultural sector, which owns 62% of all water licenses.
"There is concern about policies regarding the allocation of water rights and this is an issue on which AgriSA intends to focus intensively this year," said Van der Merwe.
It seems that progress was beem made in the handling of one of the hot spots in 2013: The 50% increase in farm workers' minimum wages.
According to Van der Merwe the social dialogue on labour issues made some progress in 2013 and there is a mutual understanding of the challenges.
"Agriculture occupies less than 3% of the economy, but the sector employs up to 15% of the workforce. When there is pressure on the sector regarding higher wages, its structure would have to be changed to the use of a smaller workforce."
Although farmers are still wrestling with the impact of the drought in 2013, it seems a better rainy season is expected in the summer rainfall areas of North West and the Free State.
The rainfall of the past few weeks has improved prospects for maize and sunflower crops in these regions.
"The groundwater situation is, however, still not satisfactory and substantial follow-up rains will be needed to ensure a fair harvest in this drought-prone area is. In Mpumalanga it is even too wet in certain areas. Apart from that agricultural conditions across the country seem fairly favorable," said Purchase.
