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Johannesburg - The biggest lobby group for South Africa’s agriculture industry asked the government for emergency aid for farmers enduring the worst drought in more than a century.
"It’s a shame that the commercial and emerging farming sectors have not received any assistance from government," Agri SA said in an e-mailed statement on Tuesday. "To date, we have not received a cent from government."
The organisation wants help for its members in the form of either state guarantees or direct assistance to farmers through the structures of the Land Bank, agribusinesses or special-purpose vehicles.
Rainfall in 2015 was the lowest since records began in 1904, causing widespread damage to crops and livestock, with rural communities particularly affected.
Farmers will need as much as R16.6bn in the year through March to subsidize feed purchases, cover grants and interest-rate subsidies for growers in financial distress and pay workers, a study earlier this year by Agri SA and others showed.
While Agri SA has set up a fund to support farmers, this is "a drop in the ocean" compared with what’s required. The organisation is considering a longer-term facility to be tapped at times of disaster.
"Agri SA cannot do it alone and will require financial muscle from Treasury or other state entities, the private sector and any other contributors," it said.
State guarantees
The National Treasury approved last week a request from the state-owned airline for a guarantee the unprofitable company needs to finalize its annual financial statements.
The government also extended a R1.85bn debt guarantee to state arms manufacturer Denel SOC on condition it reduces borrowings by 2020, Business Day newspaper reported on Monday.
The government has spent R268m on drought relief from its Comprehensive Agricultural Support program, Cooperative Governance and Traditional Affairs Minister Des van Rooyen said last week.
Provinces have provided R173m to farmers to buy animal feed and stock and an additional R198m in the 12 months ending in March to help owners of small land holdings secure livestock feed and water.
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