The agricultural sector is disappointed with the relatively small allocation that Finance Minister Pravin Gordhan has reserved for them(REUTERS)
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The agricultural sector has expressed disappointment with the relatively small allocation that Finance Minister Pravin Gordhan has reserved for the sector in Budget 2012/2013 Speech in Parliament this afternoon.
"An additional R1.9 billion goes to the department of agriculture, forestry and fisheries to improve agricultural support services. The Land Bank receives R1 billion to conclude its recapitalisation," Gordhan said in his speech.
"R150 million is made available for provincial and municipal agricultural colleges. The department of rural development and land reform has prioritised the settlement of 4 000 restitution claims over the medium term expenditure framework".
However National Agricultural Marketing Council Senior Manager for Market and Economic Research Andre Jooste says he is disappointed that only additional R1.9 billion or 0.6% of the total of the budget that has been allocated to agriculture in this year’s Budget.
"It is so concerning that you allocate so little money to such an important sector. Also the processing of more than 4 000 restitution claims over the coming period have been announced but without any budgetary allocations," says Jooste.
The issue of the 20 cents is also very concerning as many farmers may go under because of this levy.
National Red Meat Producers Organisation President Aggrey Mahanyane says one of the biggest challenges that was faced by Gordhan in this year’s Budget has been to try and balance the competing demands of social spending and developmental needs.
"But paying small business suppliers within 30 days is never done in practice and it is for this reason that many small enterprises have gone under. The issue of the 20 cents is also very concerning as many farmers may go under because of this levy," says Mahanyane.
"However I think the allocation of an extra R1 billion to the Land Bank is good news as it will enable it support emerging farmers more broadly".
Grain South Africa Senior Economist Wessel Lemmer also says the 20 cents increase in the fuel levy is very negative to for grain farmers especially as wheat growers. He says the needs of grain producers were not being addressed adequately at government level at the present moment.
"We also need an agricultural representative in Presidential Investment Coordination Council. I think the R150 million allocation for Agricultural Colleges is a very positive development. Carbon tax is a very good opportunity for farmers,"says Lemmer.
"What is also needed is uncomplicated means of calculating each farmer’s carbon footprints and strategies for earning and selling carbon credits which can become very good new revenue steam for the agricultural sector".
Click here to read Finance Minister Pravin Gordhan's budget speech
