AGRI-SA

Agri SA E-newsletter MARCH 2011

IN THIS NEWSLETTERAGRI SA’S COMMENTS ON DRAFT LAND TENURE SECURITY BILL
Annelize Crosby, Agri SA Parliamentary representative, Advisor: Legal & Land Affairs

Agri SA submitted its formal written comments on the Bill to the Department of Rural Development and Land Reform on 17 March 2011. The commentary covers 47 pages and was also sent to Minister Nkwinti and other key ministers, as well as to all affiliates.

In the document, Agri SA indicates that while some of the objectives of the Bill are praiseworthy and the organisation concedes that there are shortcomings in the existing legislation, the manner in which the Bill attempts to address the situation could have many negative, unintended consequences. Agri SA is of the opinion that there is a real risk that the Bill could have implications which are in fact contrary to the intention of the legislation. Some of these objectives relate to the promotion of harmonious relations on farms, production discipline and long-term tenure security. The unlimited rights which the Bill attempts to give to a broad category of people could result on food insecurity, a loss in production and less accommodation on farms in the long term.

Agri SA uses various practical examples from a number of commodity branches to illustrate why the content of the Bill is impractical and could pose a threat to the national economy and food production. Arguments also focus on the constitutional inconsistency of certain provisions of the Bill and a hypothetical example is used to show that, in terms of the Bill, eviction process would take at least 30 months.

Agri SA argues that it is wrong to try and correct implementation failures by introducing radical new legislation rather than simply amending the Extension of Tenure Security Act and the Labour Tenants Act and implementing them better. The organisation concludes by asking for further dialogue regarding the Bill.

MINISTER OF LABOUR ANSWERS QUESTION IN PARLIAMENT REGARDING COMPLIANCE WITH LABOUR LAWS ON FARMS
Elize van der Westhuizen, Manager Human Resources

The Minister of Labour, Ms Mildred Oliphant, responded in Parliament to a question as to whether an investigation had been conducted into the working conditions and circumstances of farm workers. She also had to indicate whether attention had been given to compliance with legislation in the agricultural sector. Where it was found that farmers did not comply with labour legislation, what action was taken against such farmers?

In response to this question, the Minister said inspections had been conducted between 14 and 18 June 2010 on 1 744 farms. On these 1 744 farms, it was found that on 1 131 farms, farmers do in fact abide by the law. In 613 cases it was found that not all provisions of the law had been complied with. Non-compliance related to regulation of working hours, employment contracts which did not address leave or maternity benefits and in 69 cases the employee information required by law was not available. In 14 cases workers were not paid for overtime worked and on only 29 farms was it found that workers were paid less than the minimum wage.

In cases where legislation had not been complied with, compliance orders were issued and followed up after 21 days. Where such orders were not adhered to, the relevant employers were prosecuted or the matter was referred to the Labour Court.

The information of the agricultural sector contradicts all the media allegations with regard to non-compliance with labour legislation.

AGRI SA’S POLICY COMMITTEES AND GENERAL COUNCIL MET

During the week of 14 to 17 March 2011 the various policy committees of Agri SA met. Some of the most important issues that were discussed are reported here per committee.

RURAL SAFETY POLICY COMMITTEE
Kobus Visser

Rural crime
At its bi-annual meeting last week the Committee expressed its frustration over the brutal crime to which the farming community had been recently exposed, of which murder is the most gruesome. Such crime has a depressing effect on agriculture and is one of the burning issues with which Agri SA deals at the highest level, especially since it hampers quality of life, job creation, growth and development in rural areas. The government has identified agriculture as one of the sectors for job creation and growth and, if rural crime is not effectively curbed, the government will not succeed in achieving these objectives. The Committee’s actions are focussed in creating a safer environment in which the farming community can continue to live and work in greater safety.
Hate speech complaints
Accusing the farming community of poor working relations and making unfounded allegations regarding human rights abuses on farms present a very negative picture of commercial agriculture. Politicians and government representatives should refrain from such utterances unless they have the necessary evidence. As in the past, Agri SA will approach the Human Rights Commission (HRC) to investigate such cases and even intends to seek legal advice regarding further action. At present the HRC is attending to complaints that Agri SA lodged regarding utterances made by Minister Sexwale during November 2009 and January 2010 as well as complaints against the president of the ANC Youth League.
Rural safety strategy
The Rural Protection Strategy was recently approved by the Minister of Police and will be one of the instruments used to create a safe rural environment. The strategy must promote policing, which includes a drastic improvement in crime prevention and crime investigation, as well as communication with the farming community. Rural safety along the country’s borders will also be strengthened through the strategy by co-ordinating operations to combat the illegal movement of goods and people. Agri SA also supported this strategy at the Border Control Conference held last week. At the conference it also supported the defence force’s return to our national borders. Reference was made to the respective structures, such as sector policing, local joints, reservists, farmer associations, etc. and to what was available to the farming community along the border whereby they could improve their own safety. The Minister of Police was urged to implement this strategy without delay.
Reservist policy
The Committee is concerned about the revised reservist policy which has not yet been finalised, but which according to information would be different from the previous policy. Should the policy make it impossible for farmers to become involved as reservists, it would amount to a breach of the government’s undertaking in 2003 to the effect that a vacuum would not be created in rural safety after the commando system is phased out. The police gave Agri SA the undertaking to communicate the policy with it, as soon as it has been finalised.
Discussions on Ministerial level
Discussions are under way with the Ministry of Police regarding further follow-up visits by the Minister to KwaZulu-Natal, the Free State and Limpopo. These visits follow after an undertaking given by the Minister to Agri SA last year to join the organisation on such visits to the provinces in order to discuss policing aspects with the farming community. Such discussions are also being conducted at present with the Ministry of Defence for a follow-up meeting regarding the return of the defence force to the country’s borders and for a visit to the Lesotho border. Agri SA also intends to meet with the Minister and National Commissioner of Police to discuss the policy and strategies that are in place to promote rural safety. The Committee is of the view that the police have a good policy and strategies which are supported by the political will to promote rural safety, but believes this does not have the desired effect at grassroots level because of deficient implementation

NATURAL RESOURCES POLICY COMMITTEE
Nic Opperman

Gas exploration
•        Agri SA’s actions at the request of Agri Eastern Cape, Agri Northern Cape and Agri Western Cape to co-ordinate natural gas exploration in the Karoo on a united front is supported;
•       Participation by Agri SA’s affiliates in the respective meetings of Golder Associates, which acts on behalf of Shell (15 – 25 March) for the purpose of explaining the Draft EMP process, is imperative;
•       Agri SA’s objections and questions, as set out in the document sent to Golder Associates with regard to registration as an Interested and Affected Party, be approved and be scrutinised in the EMP, bearing in mind that there would also be an opportunity to address Agri SA’s objections during the environmental impact studies per identified area for exploration;
•       Agri SA should facilitate liaison with the Rupert group to consider the possibilities of joint action, including the closing date for commentary on the EMP by 5 April;
•       Expert persons/ organisations be identified to advise Agri SA on the technical processes of natural gas mining; and
•       The status of ‘gas’ as a possible mineral within the MPRDA be clarified.

Water tariffs: 2011/2012
•        Agri SA’s affiliates and the Water User Associations/ irrigation boards be requested to take into account last year’s tariff plus the inflation adjustment when making tariff adjustments for 2011/2012, since no response had been received regarding Agri SA’s representations to the Department of Water Affairs (DWA) for a moratorium on the proposed increase in water tariffs for 2011/2012;
•        The DWA be informed of this decision; and
•        The South African Association for Water User Associations (SAAFWUA) be requested to propagate the decision amongst their members.

Transfer of water rights
The Committee discussed the negative impact of the DWA’s refusal to transfer water use rights on government initiatives such as economic growth and job creation, and approved that legal action in this regard may go ahead.

Mineral rights
•                Affiliates be reminded that notification of claims for damages (full quantification is currently         not             necessary) relating to the loss of ‘old order’ mineral rights as a result of the         implementation of             MPRDA should be submitted to the Department of Mineral Resources’         relevant regional offices before 30 April 2011.
•                The ruling of the High Court (court proceedings ended on 18 March) as to whether the         implementation of MPRDA amounts to expropriation of ‘old order’ mineral rights, be awaited; and
•        The question of tantième vs. the “quantification’ of damages is investigated.

Locust control
The Committee resolved that the problems experienced between Agri SA’s affiliates and NAFU at grassroots level with regard to the appointment of locust control officers should once again be raised with the Department of Agriculture. Locust control, especially in the Northern Cape, is currently not satisfactory due to uncoordinated responsibility areas between NAFU and Agri SA, with a real danger that the problem could spill over to provinces such as the Free State.

TRANSFORMATION COMMITTEE POLICY COMMITTEE
Livhuwani Ngwekhulu

1. Black farmers forum
The Transformation Committee meeting on 15 March 2011, decided to form a Black Farmer Platform where black farmers from all provinces would be invited to come and participate on their own. Farmers will come up with their own development agenda and discuss their needs within Agri SA parameters. In order to tackle the problem, the committee agreed that there must be leadership, organization and expertise in order to follow up on decisions taken. Each province and/or commodity group would be allowed to send a maximum of three representatives at their own costs. Agri SA’s transformation office will come up with a suitable date and help in the organization of this event.

2.     Land Tenure Security Bill
It was noted and agreed that:
•       a substantial amount of work had been done by the subcommittee the legal committee and affiliates.
•       The submission of comments by Agri SA (draft 3) had been circulated to all affiliates.
•       A few minor amendments would still be made.
•       The committee approved of the methodology undertaken and was in agreement with the outcome and submission prepared.
•       The final submission would be submitted on Friday.
•       A press statement would be issued
•       A position document should be prepared for use in discussions

3. Agri SA Rural Development and Land Transformation Plan – A comprehensive and integrated revitalisation strategy
It was agreed that the plan must be finalised with inclusions of additional information to be supplied by no later than Friday.

It will be circulated to the committee for additional comment.

The Agri SA Plan must be included and submitted to the Minister at the next discussion with him.

4.     Legal assistance
It was agreed that the two cases be pursued:
•       ESTA case (Eastern Cape) :it was recommended that this case be supported Agri EC to provide an indication of costs
•       Restitution case (KZN) it was recommended that the next consultation session takes place in order to provide direction with the matter

5.     Restitution & Labour tenancy
Frustration was expressed at the total lack of progress.
It was recommended that the option of a class action be revisited on restitution and labour tenancy.

6. HRC
The HRC will be reported to cabinet and the opportunity to pursue the matter of under compensation brought to them and their failure to respond will be pursued further with SADEC tribunal.

7. Agri BEE
It was agreed that the threshold level should be adjusted accordingly (upwards).

8. Farmer Development
ESFIM project would be reviewed by J Pienaar and D Maree and a decision then be made on the outcome of the review.

POLICY COMMITTEE ON AFRICA
Heléne Swanepoel

Agri SA’s policy document on Africa
The Committee recommended that the Agri SA policy document, which is aimed at African issues, should be revisited. Aspects such as rules for association, interaction with SACAU as well as marketing and financing matters must be scrutinised.

Structure of Africa Committee
The chairman, Dr Theo de Jager, reconfirmed that Agri SA’s Africa Committee focused mainly on the investment of South African farmers by ensuring that bilateral agreements are in place with the relevant African countries.

Congo Agriculture
An agreement was discussed and signed on 7 and 8 March 2011 in Ponte Noire between the Congolese departments of Agriculture, Land and Trade and Industry and Congo Agriculture (a recently established organisation consisting of farmers who wish to take up farming in the Republic of Congo). Congo Agriculture must now draft a policy because, as a company, they have acquired control over 80 000ha land. Congo Agriculture will apply to Agri SA for associated membership.

Agri-SAMoç
In Xai-Xai (Gaza Province) a forum was hosted where preliminary agreements were scrutinised. The South African High Commissioner is looking into the red tape in acquiring land. A pilot committee was appointed which provisionally chose the name “Agri-SAMoç”. The organisation will be formally established on 26 May 2011 in Centurion.

Financing
A funding model must be investigated. A workshop to discuss funding models must be arranged between all the banks, financial institutions and others to decide on the approach to financing and how to deal specifically with the situations in the respective countries.

LABOUR AND SOCIAL UPLIFTMENT POLICY COMMITTEE
Elize van der Westhuizen

1.     Commentary on labour legislation, which Agri SA had submitted to the Department of Labour. Agri SA will also, as part of the business environment, introduce these comments within Nedlac.
2.     Lack of feedback from various departments:
a.       Agri SA has addressed various requests to the Department of Labour in order to raise some issues with them.
b.       Frustrations over PAYE registration of workers.
c.       Assessments regarding the Compensation Commission as well as the payment of service providers, etc.
d.       Unsatisfactory process for documenting Zimbabwean workers at the Department of Home Affairs.
3.     Agricultural colleges and agricultural science as a subject.
a.       The state of agricultural colleges is a matter for concern.
b.       There are also concerns over the content of agricultural science as school subject and the fact that universities do not accept this subject for admission purposes.
4.        Agri SA is working on models for housing for farm workers, which must set out the “on-farm” and the “off-farm” options.

COMMERCIAL POLICY COMMITTEE
Dawie Maree

This committee of Agri SA dealt with various issue that affect farmers on economic and financial level. The farming community was recently plagued with a number of disasters ranging from droughts, floods, animal diseases and issues related to legislation and government regulations, such as the Competition Act.

Foot-and-Mouth disease
The recent outbreak of Foot-and-Mouth disease (FMD) in KwaZulu-Natal and the outbreak of Rift Valley Fever (RVF) raised concern about the readiness of government to battle these economic damaging diseases. The total state of veterinary services where discussed and Agri SA, together with the livestock industry organisations, will do a full assessment of the state of veterinary services and develop a national contingency plan for the outbreak of diseases of this nature. The outbreak of these diseases does not only affect farmers in the affected areas, but the total agricultural industry, due to export bans and other sanitary and phytosanitary issues. These kinds of disease outbreaks can’t be afforded, since it can lead to more farmers forced to leave the industry resulting in job shedding and further decline in rural economies. It also affects food security negatively. Agri SA and its commodity organisations however, ensure the public that safe, good quality food will be produced for the market.

Flood disaster
With regards to the recent flood disaster in eight provinces, Agri SA is working continuously with government, both on national and provincial level. Assessment and verification of affected areas are under way and Agri SA’s structures will be assisting in this process. The Land Bank and IDC recently announced a loan scheme to assist farmers affected by the recent floods. The details of this scheme are still awaiting, but Agri SA will also inform its members in this regard.

Up to date market indicators
Information collection and dissemination is very important for the agricultural industry. Farmers need reliable up to date market indicators for production planning and marketing of products. In the area of one-channel marketing dispensation, marketing boards fulfilled this requirement. Industry organisations took on this service after the deregulation of the market. Unfortunately, with the current Competition Act certain problems came to the fore with regards to the sharing of information. Industry organisations are directly affected by this legislation and this lead to the situation that certain important market information could not be disseminated to farmers. Agri SA and its commodity affiliates awaits the NAMC report on market information and will then engage with government on this issue in order to find solutions and ensure that the much needed information can reach farmers to enable them to make informed decisions.

Cooperative structure
The committee took also note of the Department of Trade and Industry’s initiative to promote the cooperative structure as vehicle for job creation and rural development. Agri SA will engage with government with regards to certain issues in the current Cooperative Act that limits the use of this kind of organizational structure in agriculture. We are however positive that the sector can contribute to the initiatives of government with regards to job creation and rural development.

GENERAL COUNCIL : 17 MARCH 2011
Willie Jacobs

Agri SA’s General Council met on 17 March. The meeting was preceded by meetings of the policy committees and a media conference.

The Council meeting focused on organisational matters, while the respective policy committees provided feedback on their meetings. Feedback was also provided on Agri SA’s conference held in Somerset West on 21 – 22 February and on meetings of the General Affairs Chamber and the Commodity Chamber held on 23 February 2011.

Organisational matters – most important decisions
•       Agri SA’s 2011 Congress scheduled for 13 – 14 October 2011 will again be held at Misty Hills.
•       Further decisions relate to the composition of committees of the General Council (Remuneration Committee and Budget and Audit Committee), funding of legal costs and affiliation fees.
•       Agri SA had approved a new constitution in 2009 and the General Council has approved appendices to the constitution.
•       Agri SA has made nominations for persons to serve on the Boards of AgriSETA as well as the National Marketing Council, which were forwarded to the respective organisations.

TOYOTA SA / AGRI SA YOUNG FARMER OF THE YEAR 2011
Kobus Visser, Director: Corporate Liaison

Toyota SA and Agri SA have for the eight year joined forces to present the Young Farmer of the Year competition. This year the national winner will receive a big prize. The competition entails nine provincial competitions in which young farmers between the ages of 18 and 35 can participate on condition that they have been a member of an affiliated provincial organisation of Agri SA for two years or longer. During Agri SA’s Communication and Image Policy Committee meeting last week the Committee again gave its support for the competition. The value of the competition in developing young entrepreneurship as well as preparing young farmers to become future leaders was again emphasized by the Committee.

NISSAN SA STRENGTHENS ITS RELATIONSHIP WITH AGRICULTURE
Kobus Visser, Director: Corporate Liaison

In the interest of the agricultural community’s safety, Nissan SA recently reaffirmed its undertaking to promote rural safety by means of financial contributions to the Agri Securitas Trust Fund.

In terms of the vehicle manufacturer’s relationship with the Trust Funds, which started 11 years ago, Nissan SA contributes R1 000 to the Fund for every new Nissan vehicle purchased by agriculture, including farmers. Agriculture can demand a rebate of 2% to 8%, depending on the model, excluding accessories. A fleet code, F14911, must be used to qualify for the rebate when a vehicle is purchased from a dealership.
Nissan’s dealership network has been informed about the arrangement and is ready to assist agriculture with the purchase of a new Nissan vehicle.
The entire range of Nissan commercial and recreation vehicles stand ready, as usual, to serve the agricultural industry.

Since the inception of the Trust Fund in 1999, it has contributed financially to more than 90 rural safety projects. These projects contribute to a safer environment for the farming community where they can continue in safety to produce food and fibre for the country’s growing population.

PARLIAMENTARY: JANUARY – 11 FEBRUARY 2011
Annelize Crosby, Agri SA Parliamentary representative, Adviser: Legal & Land Affairs

Portfolio Committee on Rural Development and Land Reform: Submissions on the General Rural Development and Land Reform Bill
Although the official opening of Parliament only took place on 10 February, certain committees had already started meeting as from 18 January. On 19 January 2011 the Portfolio Committee on Rural Development and Land Reform met to hear a submission on the General Rural Development and Land Reform Bill. The Bill was in fact merely of a technical nature and was largely intended to replace the old name of the Department, the DG and Minister (Land Affairs) with the new name (Rural Development and Land Reform). Some institutions and individuals, however, did make submissions but the inputs had little to do with the content of the Bill. One submission was from a community that was unhappy about the cut-off date for restitution claims; a second dealt with the possible role of rural youth in rural development, and third – that of an individual (Phindi Khema) - dealt with the dissatisfaction of black farmers with the limited assistance received from the state.

Submission on flood damage by the Department of Agriculture, Forestry and Fisheries
On 24 January 2011 the Director General of the Department of Agriculture, Forestry and Fisheries made a submission to the Portfolio Committee on Agriculture, Forestry and Fisheries on the recent floods and the Department’s response to this. Flood damage was reported in eight of the nine provinces. The Northern Cape and North West were most affected by the floods. Information was provided on the number of hectares per province affected by the floods and the estimated damage where figures were available. Above-normal rainfall is still expected within the next three months in the Northern provinces. The poor condition of infrastructure, such as farm dams and drainage canals, has contributed to the damage.

Department of Agriculture, Forestry and Fisheries’ third-quarter report
On 25 January 2011 the Department of Agriculture, Forestry and Fisheries presented their report for the third quarter of 2010 to the Portfolio Committee on Agriculture, Forestry and Fisheries. The report dealt with all seven programmes implemented by the Department. It was reported, among other things, that a one-stop financial service and fund was to be launched in April 2011. The Portfolio Committee expressed concern regarding the lack of progress made with the implementation of the AgriBEE Charter. Apparently the AgriBEE board had decided to ask the National Marketing Council to conduct a study on the recommended cut-off points for exempted micro-businesses and qualifying small businesses.

GSA’s submission on black farmer development programme
Op 26 January 2011 Grain SA made a submission to the Portfolio Committee on Rural Development and Land Reform regarding their black farmer development programme. Dr Kobus Laubser said Grain SA wished to expand their programme, in partnership with the Department of Rural Development and Land Reform, in order to reach more farmers. Grain SA acknowledged the good co-operation which they experienced on the part of various commodity trusts, banks and agribusinesses. The programme had grown a great deal over the past five years in terms of staff, budget and the number of new farmers who have been assisted. The programme focuses on the development of the individual within his or her present circumstances. Assistance takes the form of farmer days, training, study groups and radio programmes. Obstacles include the low profitability of grain, lack of knowledge, skill and experience, and a lack of production finance and implements. The submission was well received.

Submission on flood damage by the Department of Water Affairs
On 17 January the Department of Water Affairs made a submission to the Portfolio Committee op Water and Environmental Affairs on the recent floods. An overview of the status of water-related infrastructure was provided. Apparently there are 359 dams countrywide that require attention. The Department also informed the Committee on the management of floods in the Vaal River system.

Submission made by the Department of Trade and Industry on the promotion of co-operatives
On 9 February 2011 the Department of Trade and Industry made a submission to the Select Committee on Trade and International Relations regarding the promotion of co-operatives. The Department aims to help realise the potential benefits of co-ops by raising the profile of co-ops in the economy. The ultimate aim is a self-sustaining co-operative sector, which will be achieved through partnerships and ongoing assistance to co-ops. Co-operatives will be marketed as a vehicle whereby decent job opportunities can be created and poverty can be alleviated. Examples of international best practice regarding co-operatives and the success of co-ops in many countries were presented to the Committee. A favourable tax dispensation was envisaged and a special fund would also be created for co-ops.

President Zuma opened Parliament on 10 February. In his speech he emphasised job creation and again identified the agricultural sector as one of the sectors with the potential for job creation. He also undertook to create infrastructure to help grow the agricultural sector. The full speech is available on Agri SA’s website.