Reviewing 15 years of resource-poor small-scale agriculture in SA: is there any way forward?

Reviewing 15 years of resource-poor small-scale agriculture in SA: is there any way forward?

Tim HartHSRC: CPEG

TIPS Forum, Cape Sun31October 2008

Tim HartHSRC: CPEG

TIPS Forum, Cape Sun31October 2008

IntroductionIntroduction

• Agriculture in South Africa• Who are the resource-poor?• What have we done for them?• Can we ignore them?• What must be done?

SA Agricultural LandscapeSA Agricultural Landscape

• 100 million Ha of Agric Land• 14 million viable for arable farming• 72 million for grazing• 46 000 commercial farming units-mainly white owned

• Arable land in former homelands 11%-16%• Irrigation schemes 3.7% of total

• Plots small, farming is cyclical• Erosion, hilly terrain, overgrazing• 3.4-4.8 million engaged in agriculture in former

homelands – 2 million households• 240 000 commercially focused• Remainder supplement household food supply

Agricultural Producers in South Africa

Agricultural Producers in South Africa

• Large-Scale Commercial• Mainly white

• Small-Scale Farmers• mainly black – 3 types• Semi-subsistence – cyclical, low risk, very low

inputs, no support, multiple livelihoods• Communal – projects, low inputs, little support,

multiple livelihoods• Emerging – larger in scale, risk taking, high inputs,

more support, sole livelihood?

Underdevelopment of the homelandsUnderdevelopment of the homelands

• Current situation not always so• Transkei area exported food in 1850s• 1930s only imported 10% of food• Herschel District exported grain in mid-1800s• Taken from Basotho in late 1800s• Lesotho has lost its most arable land

• Current situation a historical process• Colonial expansion and dispossession• Apartheid• Current government policies• Overpopulation – decline of NR• Climate change• Decline in interest in agriculture – activity of the poor• HIV/AIDS• Quick Fix Technologies, projects and policies

• BUT Production Continues

Labour Force Survey Data (1)Labour Force Survey Data (1)

• Generally poor Statistics on Smallholders in South Africa

• LFS provides some interesting data• Sep 2000-Sep 2007 – 3.4 million to 4.8 million Black South

Africans engage in agriculture for some purpose• Agric as main source of food: 33% to 8% with low of 5%

(Sep 03)• Agric as supplement to hh food supply: 55% to 81% with

high of 88% (March 04) – increased access to social grants??

• Agric as main source of hh income: 3% to 2%• Agric as extra source of hh income: 5% to 6% but typically

around 3%• Leisure activity: 4% to 3% with low of 2%

• Depends on other livelihoods and people’s socioeconomic circumstances

Labour Force Survey Data (2)Labour Force Survey Data (2)

-

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000 Main source of food Extra source of foodMain source of income Extra source of incomeLeisure activity/hobby

Labour Force Survey Data (3)Labour Force Survey Data (3)

0 500,000 1,000,000 1,500,000 2,000,000 2,500,000

Leisure activity/hobby

Extra source of food

Extra source of income

Main source of income

Main source of food

Number of people

Women

Men

Labour Force Survey Data (4)Labour Force Survey Data (4)

Share of Black Households engaged in agriculture per District Municipality

Labour Force Survey Data (5)Labour Force Survey Data (5)

• In 4 municipalities 57%-72% are engaged in agriculture – in further 8 share is 43%-56%

• 2 million of 11 million black households (20%) engage in agriculture

• But share in former homelands is much higher• 3 municipalities account for 25% of all black

smallholders nationally• Movement away from agriculture, but has dual role in

rural livelihoods• Buffer against poverty for most poor• Wealth creation for higher income hhs

• Safety net role overlooked by policy makers• Wealth creation supported but often inadequately

so!

Common constraints of resource-poor farmers

Common constraints of resource-poor farmers

• Uncertain property rights• Climate, water, poor soils – not addressed• Lack of income to purchase required inputs – small

parcels of land - neglect large• Poverty prevents them from overcoming obstacles• Intense and diverse practices – spread risk to obtain

some food• 5% of hh income from agriculture!• Greater income from other sources• Food supplementation is main focus• NOT “real” farmers – do not attract support• But most needy

Support and Constraints to Resource-Poor Farmer Development: Govt support

Support and Constraints to Resource-Poor Farmer Development: Govt support

• 1994-1998 govt focus on resource poor (1995 White Paper)• Technology inappropriate and transfer not the solution• R&E cannot service the many• Support for the poor needs to consider circumstances and

be comprehensive

• 1999 to present govt focus on wealthier and better resourced (emerging) farmers (2001 Strategic Plan)• Govt resources now focus on wealthier few• Market production focus• Supplementation of hh food supply ignored• LRAD and CASP focus on the better-off/ “credit worthy”

Support and Constraints to Resource-Poor Farmer Development: NARS

Support and Constraints to Resource-Poor Farmer Development: NARS

• NARS is fragmented• Funding structure is inappropriate – core funding

reduced• Private sector involvement

• Shift away from primary research• Profit driven and IPR• No longer a public good

• NARS focus largely on Commercial/Emerging sector• Little attention given to the plight of resource-poor farmers• Scant research on low input low cost technologies• Research still governed by commercial paradigm of yields

and not local circumstances• Food Security and reduced expenditure off the map

Support and Constraints to Resource-Poor Farmer Development: Private Sector

Support and Constraints to Resource-Poor Farmer Development: Private Sector

• Seed Companies and Cooperatives• Holistic packages to viable emerging

farmers

• Too difficult to work with poorer farmers – numbers and technology

• No real profit incentive to work with this sector

Constraints in smallholder sector (1)Constraints in smallholder sector (1)• Institutional

• Involvement in value-added chains scarce – mainly better-off • Low Govt investment in public goods

• Rural Infrastructure • Under investment in roads, transport, storage facilities and

communication – reduces competitiveness• Restricted/scarce access to input and output markets – increase

production and transaction costs

• Global Factors• Low import prices• Unlevelled playing fields – GATT and WTO• SA is middle income country – Black producers do not benefit• Negotiated better agreements would need to be backed up with

better support and infrastructure

Constraints in smallholder sector (2)Constraints in smallholder sector (2)• Commercial Sector

• Reduced protectionism – competitiveness• Bankruptcies and retrenchments• Collapse of Land Reform farms• Restrictive labour practices• Will not/cannot comply• Pressure on rural economy and households

• HIV / Aids• Lack of Extra Income• Redeployment of hh income, labour and other

resources• Death leads to skills shortage

DiscussionDiscussion• Gradual introduction of support since 1994

• Limited success – little for the poor• Scant attention to socioeconomic, political, gender

and agroecological factors at local level

• Improving food security activities vital• Largest numbers• People are doing this – not new• Income used for other goods and services• Shift from resource-poor to emerging?• Improve diet and nutrition• Need to reach the 14 million food insecure and the

1.5 million malnourished children

ConclusionConclusion• Successful poverty focused rural development strategy must

include development of resource-poor• Remain on the margins – will not go away

• Understand• Diversity of reasons for agricultural involvement and diverse

environments• Current risk reduction practices• Past, present and future challenges• Required support and technology• Food security and dietary diversity more important than

contribution to economy• Strategy must interlink with broader poverty reduction

strategy• Collaborative not a single Department• Not simple

• Three-pronged approach to Agricultural growth

Thank You