Farms for sale in crisis-ridden Ukraine

Experts say the crisis in Ukraine is set to trigger the sale of state-owned farm land and small family plots to foreigners

Ukraine, known as Europe’s bread basket, has the eighth largest agricultural area in use globally and is the world’s third largest exporter of corn and sixth largest grain grower, potentially making it a prime target for foreign investment.

But the government has been wary of allowing foreign land sales, fearing rural unrest, and the value of its 32 million hectares (79 million acres) of farmland has been limited by its division into small plots with relatively low productivity.

However economic turmoil emanating from the conflict between pro-Russia rebels and government forces in the east has intensified the need for change, said Heinz Strubenhoff, agribusiness investment manager for the World Bank’s International Finance Corporation in Ukraine.

Opening the farm sector, a key driver of the economy, to outside investors has long been backed by the World Bank and International Monetary Fund (IMF), and Strubenhoff believes changes will now happen sooner rather than later.

“It’s time to think about privatization. They need to prepare everything to allow for farm land sales (to foreign and domestic investors) in three to four years,” Strubenhoff told the Thomson Reuters Foundation.

Currently, farm land cannot be bought or sold in Ukraine, but companies can sign onto long-term leases with small holders.

President Petro Poroshenko, elected last May after protests ousted previous Russian-backed leader Viktor Yanukovich, had considered lifting restrictions on land sales during “long discussions” with World Bank officials, Strubenhoff said.

But Kiev backed off the move as it feared a backlash from rural communities, he said.

Ukraine’s Ministry of Agriculture was unable to immediately respond to requests for comment.

Agriculture Minister Oleksiy Pavlenko told local media last month that he believes Ukraine can produce 100 million tonnes of grain annually by 2020, up from 62 million tonnes in 2014.

To nearly double production, the country aims to attract $25 billion in outside investment for agriculture, Pavlenko said.

But enticing new capital in the midst of the conflict that has displaced nearly a million people won’t be easy.

Jean-Jacques Hervé, counselor to the board for agriculture at France’s Credit Agricole Bank in Ukraine, said local people don’t have enough money to buy the land.

“Speculators with access to foreign currency would be the biggest winners (if the land market was opened),” he told the Thomson Reuters Foundation.

Selling land to foreign investors could cause problems and the government should instead help get finance to farmers, search for new export markets and simplify the procedures for land leases, he said.

Frédéric Mousseau, policy director of the Oakland Institute, an NGO critical of privatization, said pushing Ukraine to open its land market would end up giving domestic and foreign oligarchs more control over the country’s agriculture potential.

“About 20 percent of the country’s most fertile lands are already controlled by large agribusiness firms (through long-term leases),” Mousseau told the Thomson Reuters Foundation.

“The (proposed) reforms would just intensify this concentration.”

But despite concerns from some quarters, U.N. officials are backing the World Bank’s view on sales.

“In the long term, Ukraine should aim to open its land market to allow optimum resource allocation,” Dmitry Prikhodko, an economist with the U.N.’s Food and Agriculture Organization (FAO) told the Thomson Reuters Foundation.

With foreign currency reserves low, Kiev needs the World Bank’s money – up to $2 billion this year with another $8 billion from the IMF – which potentially gives officials like Strubenhoff greater policy leverage.

“There is a big chance in the crisis for the Ukrainian government,” Strubenhoff said.

Source: Reuters

Privatize government’s land to get budget balanced: TAU SA

Land under the control of government is an unhealthy practice that causes only harm to the country and to agriculture.

Mr. Louis Meintjes, TAU SA’s president, responded to the news of horrific neglect on a farm near Nigel  that is managed by the local authority. Apparently many pigs and chickens died of thirst while plants in vegetable tunnels also died of drought. Meanwhile, it was revealed that the Mamahlola farm near Tzaneen, which was given to the Banareng Ba-Ga-Letsoala community 10 years ago and since then placed under the administration of the government, is not able to pay its workers because of mismanagement.

“It is a known fact that land that is privately owned is generally better managed as it is as part of a business that is considered to be profitable.

“Where government is the manager of land it is delegated to an official with no personal interest in the land. He does not share in the profits or losses with the result that he does not really care about the success.

“During the interim budget by the Minister of Finance he announced that certain state assets will be partially sold in an effort to get government out of its financial problems. Under those circumstances it would be desirable also to sell land owned by government and to get commercial farming going, rather than to let it be neglected as in the Spaarwater and Tzaneen cases where also R15 million of taxpayers’ money was pumped in without a single cent return from it,” SAID Mr Meintjes.

It’s also a fact that many of the land that changed of ownership due to the restitution process is still registered in the name of the Republic of South Africa. That land’s title deeds should be registered in the name of the current beneficiaries to enable them to get that land in full commercial production. Without ownership of that land they will experience difficulty in becoming successful farmers because they do not have access to capital, says Mr Meintjes.

“At the same time, the ANC’s secretary-general, Gwede Mantashe, has to take notice of these developments. This is not a perception of inability:  here is the reality of failure, and failure by a local government under ANC control.”

Billionaire’s buying up mega-farms

It was a showdown in New Mexico earlier this year, as two billionaires, both from Fort Worth, Texas, battled it out to buy two enormous cattle ranches.

When the dust cleared, oil, gas and real-estate investor Bobby Patton, co-owner of the Los Angeles Dodgers, had won the 174,000-acre York Ranch, spending more than the $10.9 million asking price and outmaneuvering D.R. Horton , one of the country’s largest home-building companies. In a separate deal, D.R. Horton, founded by Donald Horton, outbid Mr. Patton for the nearby 292,779-acre Great Western Ranch, closing in July for around the asking price of $59 million.

The market for large ranches is on the rebound. The recession and droughts dampened demand for wide swaths of ranch land in recent years. Dry conditions forced ranchers to sell off their herds, creating a glut that drove down cattle prices. Now, with easing drought conditions across much of the country and higher cattle prices, ranches that had been sitting on the market have started to sell. A boom in the oil and gas industry and current 2% interest rates on ranch mortgages are also fueling big land grabs.

“It’s the perfect storm,” says Sam Middleton, a Lubbock, Texas-based ranch agent who is representing Waggoner Ranch. With 510,000 acres across six counties in Texas, Waggoner Ranch is one of the largest ranches ever to go on the market. The heirs of Texas cattle baron W.T. Waggoner listed it just a few weeks ago for $725 million. Mr. Middleton and Briggs Freeman Sotheby’s International broker Bernie Uechtritz say “hundreds” of interested buyers have called about the property.

Demand is particularly strong right now for mega ranches—those with over 25,000 deeded acres and often more than 100,000 total acres listed in the $10 million to $175 million range. Deeded acres are more desirable because they’re owned outright; ranches may also include acreage leased from the state or federal government, which allows them to graze their cattle in exchange for a fee. These properties typically have cattle operations, as well as recreational assets such as hunting, fishing or hiking. Some listings include mineral rights in the sale, which offers potential revenue from oil, gas, uranium, coal or other resources.

Hall & Hall, a ranch real-estate agency that listed both the York and Great Western ranches in New Mexico, says a substantial part of its $1 billion-plus in ranch sales since 2012 has come from these larger properties. The firm has sold seven ranches bigger than 25,000 deeded acres since 2011, three times the number it sold in the previous four years.

Buyers of these mega ranches are looking for income, such as a profitable livestock operation or fees from allowing wildlife-hunting, says Jeff Buerger, a Denver-based partner with Hall & Hall. More important, they are looking for a safe, long-term investment. The value of U.S. pasture land normally grazed by livestock rose 11% in the fiscal year 2014, which ended in September, from a year earlier, after averaging about 5% yearly increases for the two years before that, according to the U.S. Department of Agriculture.

In a statement from D.R. Horton, the company said the purchase of Great Western Ranch was a “long-term investment, with no immediate plans for development. It will remain an active ranch operation and be made available for use by our key employees.”

Michael Hewatt, a member of the D.R. Horton board, says the company will use it much like it does the two large ranches it owns in Texas: as a place to entertain brokers, bankers and other D.R. Horton vendors. “It’s a perk for the people we work with,” he says. He also says the ranch is a “good investment for the long term.” Mr. Horton has also personally purchased large parcels of ranch land in Texas and New Mexico, according to public records.

Mr. Patton is more likely to use York Ranch for entertaining than for raising cattle, says Thomas G. Fitzgerald, one of the sellers. Mr. Fitzgerald says the cash flow from the cattle was “insignificant” in comparison to the value of the land. There’s also some potential hunting revenue, from $25,000 to $40,000 a year. The ranch, which has elk, mule deer and pronghorn antelope, is allocated about 14 big-game tags—which signifies the number of animals that can be harvested. A three-bedroom, two-bathroom main house and a small airplane hangar with two landing strips came with the sale. It is very much a working ranch—it’s nothing fancy, says Mr. Fitzgerald. Mr. Patton declined to comment on his plans for the ranch.

A major ranch purchase also comes with bragging rights. Many of the bigger properties are known as “legacy” ranches in part because buyers want to stake their claim in history. These ranches stand out for their size, unusual location or a unique feature, says Eric O’Keefe, editor of the Land Report, which publishes an annual ranking of the largest 100 private landowners in the country. To make that list requires owning 100,000 deeded acres or more.

Billionaire Stan Kroenke, who owns the St. Louis Rams and soccer’s Arsenal F.C., bought a roughly 124,000-acre ranch in 2012 near Augusta, Mont., listed for $132.5 million by the estate of William and Desiree Moore, the late co-founders of Kelly-Moore Paints. Called the Broken O Ranch, Mr. Kroenke’s purchase elevated him on the Land Report’s list of largest landowners, where he currently holds the No. 9 spot. Mr. Kroenke didn’t respond to a request for comment. Liberty Media Chairman John Malone remains at the No. 1 spot on the Land Report’s 2014 list, with 2.2 million acres. Mr. Kroenke didn’t respond to a request for comment.

Much of the action is in New Mexico. Unlike Texas and Colorado, the state still has quite a few very large properties that haven’t been broken apart. Real-estate agents estimate that New Mexico has about 30 ranches bigger than 100,000 acres of deeded land. Land prices are lower, too. New Mexico ranch land sells for $200 to $300 per acre, compared with as high as $1,000 an acre in Wyoming, Montana and elsewhere.

Ben Scott of Dimmitt, Texas-based Scott Land Co. is representing a 109,000-acre Double V ranch near Roswell, N.M., listed for $26.2 million, or $240 an acre. Double V first went on the market in 2009 but didn’t sell. It was relisted in the spring of 2013 and is currently under contract.

Caleb Matott, also a Texas-based ranch real-estate agent, in August sold the 35,000-acre Red Bluff Ranch, listed for $7 million, near Roswell, N.M. The buyers were Mr. Horton and his wife, Martha, personally—not by the company, according to public records. In marketing the ranch, Mr. Matott stressed the legacy value of the property: “To stand on the same ground that John Chisum, John Tunstall, Billy the Kid, Pat Garrett and so many more have stood, makes a man walk with a little higher step in his stride. To own a ranch of the grandeur makes a person part of history.”

Mr. Patton has another property in New Mexico: He and Mark Walter, the Chicago financier who is also a co-owner of the Dodgers, bought the 93,403-acre Double H ranch in west-central New Mexico last year through Double H Holdings LLC, which was used to buy the York ranch. The sale price isn’t public, but the Rocky Mountain Elk Foundation, a habitat-protection organization that owned the ranch, earned at least $30 million in the deal, according to Blake Henning, vice president of lands and conservation for the Rocky Mountain Elk Foundation.

Vast ranch holdings by a few individuals can cause deep resentment in the community, Mr. Henning says. Since private landowners either ban the public from hunting on the land or use outfitters to sell expensive hunts, local hunters often complain, he says.

That resentment won’t go away soon. Competition for recreational ranches, particularly by owners of thriving oil and gas companies, has picked up. There’s a shortage of supply now of the largest properties, which tend to go to the same small group of investors. “There’s a finite group of potential purchasers. We are all aware of them and what their appetites are,” says Greg Fay, founder of ranch brokerage firm Fay Ranches.

Great Western Ranch closed in July for around the asking price of $59 million. A previous version of the story said the ranch had sold for more than its asking price.

Source: WSJ

South African government’s communist land policy: final proposals

Department-of-ruraldevlandref

 

FINAL POLICY PROPOSALS ON “STRENGTHENING THE RELATIVE RIGHTS OF PEOPLE WORKING THE LAND”

STRENGTHENING RELATIVE RIGHTS OF PEOPLE WORKING THE LAND.
Policy Proposals: Final Draft. 21 February, 2014.

A. CONTEXT
The broad context for all rural development and land reform policies is the Constitution and the law of the Republic, particularly sections 25, 26, 27 and 36 of the Constitution. Secondly, it is the Freedom Charter (FC), which declares that ‘South Africa Belongs To All Who Live In It, Black And White!’ Thirdly, it is the National Development Plan (NDP). Fourthly, it is Agenda 21 of the United Nations. Lastly, General Comment No.7 (1997). The right to adequate housing (Article 11 (1) of the Covenant): forced evictions

The tension to which these provisions are particularly pertinent, in the case of rural development and land reform, is the necessity to address historical land hunger, which could be absolute in most instances; and, extreme concentration of land ownership and control in a few hands, on the other hand.

The mandate of the Department of Rural Development and Land Reform is to mediate a ‘just and equitable’ redistribution of land across these two disparate and potentially conflictual patterns of land ownership and control.

The principles and the strategic thrust underlying land reform, as set out in the Green Paper on Land Reform, are as follows:

deracialising the rural economy;
democratizing the allocation and use of land across gender, race and class; and,
sustained production discipline for food security (and food sovereignty).

The strategic thrust, also set out in the Green Paper, is that land reform should be pursued with minimal or no disruption to food production and security.

The Department defines land reform inclusively of the following four functions or pillars:

restitution of land rights;
redistribution of land;
land tenure reform; and,
development of the land.

It further defines the strategic objectives of land reform as two-fold:

that all land reform farms are 100% productive during the 2014-2019 Medium Term Strategic Framework (MTSF) period; and,
rekindling the class of black commercial farmers which was deliberately and systematically destroyed by the 1913 Natives Land Act, re-inforced by other subsequent pieces of legislation enacted by successive Colonial and Apartheid regimes.

B. SOME POLICY PERSPECTIVES AND CONSIDERATIONS

The Draft Bill consolidating the Extension of Security of Tenure Act (Esta) and the Labour Tenants Act (LTA) seeks to deepen the security of tenure of farm-workers and farm-dwellers, without threatening household food security and national food sovereignty. This sensitive balance between security of tenure rights, on the one hand, and food security and sovereignty, on the other, must be maintained at all times.

For the benefit of people who have not had sight of the pertinent provisions of the FC, the NDP, Agenda 21 and General Comment No. 7 (1997), we highlight such pertinent provisions below.

Clauses of the FC:

Clause 3: The People Shall Share In The Country’s Wealth!

The national wealth of our country, the heritage of South Africans, shall be restored to the people;
The mineral wealth beneath the soil, the banks and monopoly industry shall be transferred to the ownership of the people as a whole;
All other industry and trade shall be controlled to assist the well being of the people;
All people shall have equal rights to trade where they choose, to manufacture and to enter all trades, crafts and professions.

Clause 4: The Land Shall Be Shared Among Those Who Work It.

Restrictions of land ownership on racial basis shall be ended, and all the land re-divided amongst those who work it to banish famine and land hunger;
The state shall help the peasants with implements, seeds, tractors and dams to save the soil and assist the tillers;
Freedom of movement shall be guaranteed to all who work on the land;
All shall have the right to occupy land wherever they choose;
People shall not be robbed of their cattle, and forced labour and farm prisons shall be abolished.

Agenda 21:

In 1988, in the Global Strategy for Shelter to the Year 2000, adopted by the General Assembly in its Resolution 43/181, the “fundamental obligation [of Governments] to protect and improve houses and neighborhoods, rather than damage or destroy them” was recognized.

Agenda 21 stated that “People Shall Be Protected By Law Against Unfair Eviction From Their Homes and Land.” In the Habitat Agenda, Governments committed themselves to “protecting all people from, and providing legal protection and redress for, forced evictions that are contrary to the law, taking human rights into consideration; [and] when evictions are unavoidable, ensuring, as appropriate, that alternative suitable solutions are provided.”

The National Development Plan:

Chapter Six of the NDP. Sums up the essence of an integrated and inclusive economy in the following ‘Key Points’:

Rural communities require greater social, economic and political opportunities to overcome poverty.
To achieve this, agricultural development should introduce a land reform and job creation / livelihoods strategy that ensures rural communities have jobs.
Ensure quality access to basic services, health care, education and food security.
Plans for rural towns should be tailor-made according to the varying opportunities in each area. Intergovernmental Relations should be addressed to improve rural governance.

General Comment No.7 (1997):

In its General Comment No.4 (1994), the Committee on Economic, Social and Cultural Rights observed that all persons should possess a degree of security of tenure which guarantees legal protection against forced eviction, harassment and other threats. It concluded that forced evictions are, prima facie, incompatible with the requirements of the Covenant.

The term “forced evictions” as used throughout this General Comment is defined as the permanent or temporary removal against their will of individuals, families and /or communities from the homes and/or land which they occupy, without the provision of, and access to, appropriate forms of legal or other protection. The prohibition on forced evictions does not, however, apply to evictions carried out by force in accordance with the law and in conformity with the provisions of the International Covenants on Human Rights.

In case where eviction is considered to be justified, it should be carried out in strict compliance with the relevant provisions of international human rights law and in accordance with general principles of reasonableness and proportionality. The Committee considers that the procedural protections which should be applied in relation to forced evictions include:

an opportunity for genuine consultation with those affected;
adequate and reasonable notice for all affected persons prior to the scheduled date of eviction;
information on the proposed evictions, and, where applicable, on the alternative purpose for which the land or housing is to be used, to be made available in reasonable time to all those affected;
especially where groups of people are affected, government officials or their representatives to be present during an eviction;
all persons carrying out eviction to be properly identified;
evictions not to take place in particularly bad weather or at night, unless the affected persons consent otherwise;
provision of legal remedies; and,
provision, where possible, of legal aid to persons who are in need of it to seek redress from the courts.

We, therefore, need to develop a system of incentives and disincentives to encourage those with vested interest in the land to conduct their relationship around land according to the dictates of these Clauses of the Freedom Charter, the National Development Plan, the UN’s Agenda 21 and General Comment No.7 (1997), with whatever necessary adaptations here and there, as the case might be, given peculiar conditions and circumstances.

C. COMBINING SHARE-EQUITY WITH CO-MANAGEMENT

A combination of Share-equity and Co-management is the key to achieving this system of positive incentives and disincentives. This should be built into the current Draft Bill, so that it could assist government manage unintended consequences to the re-opening of land claims and the introduction of the Exceptions to the 1913 cut-off date for the Khoi and the San descendants, historical landmarks and heritage sites. These Exceptions need not fall under the framework of the Restitution of Land Rights Act (as amended).

As I understand it, put generally, the LTA provides the capacity to translate tenancy rights into the right to claim land restitution, as well as securing protection against eviction (with no reference to whether or not such eviction was justified or arbitrary), after a certain length of time working and residing on a farm. Even justified eviction (we must define, and differentiate between, arbitrary and legitimate eviction upfront) would require the evictor to ensure that the evicted has alternative residence.

The Share-equity Scheme could, and should, as circumstances might dictate, be complemented by the establishment of Sustainable Rural Settlements on land acquired either through share-equity rights accumulated by workers over time, as workers on farms, or, through state interventions.

The United Nations ascribes effectiveness of “sustainability” to the following conditions:

Socio-cultural development: health, education and recreation;
Economic development;
Environmental development;
Institutional / political support; and,
Morality and aesthetic relational values.

These Sustainable Rural Settlements would achieve at least three objectives:
secure the residential tenure of the farm-dweller/worker;
enable him/her to sell his/her labour-power across the fence, without fear of eviction; and,
strengthen his/her bargaining power in advancing worker rights and improving his/her conditions of living.

With the advent of the Land Rights Management Committees, which are multi-stakeholder platforms, the relations being created in these proposals should be easily managed.

But, there does not seem to be any sort of duty and responsibility placed on the worker-dweller to play their role in ensuring that their right of tenure to the land is earned; and, could be systematically defended. This is a serious gap, viewed against the Third Principle and the Strategic Thrust of land reform, as they stand now. South Africa is a constitutional democracy. Everybody’s rights are enshrined in the Bill of Rights; and, our Courts guard the observance of these rights very jealously. But, in any constitutional democracy, rights are balanced with responsibilities.

The system we introduce, therefore, must take this necessary balance into cognisance. We have a system of rights and responsibilities; duties and services; and, opportunities and constraints, all of which hang on the authority of the constitution and the law.

D. WHAT IS TO BE DONE?

Protect and promote relative rights of people working the land.

The regime being proposed here is based on the relative contribution of each category of people to the development of defined land portions or farm units. The historical owner of the land automatically retains 50% of the land, while the labourers on the land assume ownership of the remaining 50%, proportional to their contribution to the development of the land, based on the number of years they had worked on the land.

The Government will pay for the 50% to be shared by the labourers, but the money will go into an investment and development fund (IDF) to be jointly owned by the Parties constituting the new ownership regime. The Fund will be used to develop the managerial and production capacity of the new entrants to land ownership, to further invest on the farm as well to ay out people who wish to opt out of the new regime.

Keep the current regime of tenancy protection and derived rights, but balance that up by introducing a regime of duties and responsibilities which the worker-dweller must observe and comply with, in order to sustain the share-equity regime being introduced here.

All labourers who would have worked on a farm for ten consecutive years (but less than twenty-five years) of disciplined service, based on the regime of duties and responsibilities historically obtaining on the farm, the worker-dweller must be entitled to ten percent share-equity on the land, based on its market value.

Should the worker/dweller wish to leave the farm, after ten years of disciplined service, having earned the ten percent share-equity ownership of the land, he/she should be compensated to that extent, over and above whatever other rights were due to him or her, as an employee.

After ten years of disciplined service, the Farm Manager should, by force of law, introduce the worker-dweller to basic elements of farm management, reflective of the new relational dynamics.

After twenty-five years of disciplined service, the farm-worker/dweller should be entitled to twenty-five percent share-equity on the land. The same conditions, which define the relationship between the farmer and the worker/ dweller, as set out in the relevant paragraphs above, hold in this regard as well.

After fifty years of disciplined service, the farm-worker/dweller shall be entitled to fifty percent share-equity on the land; and, all the conditions as set out in the relevant paragraphs above apply.

In the event a worker/dweller failed to comply with the regime, as set out in the contract of disciplined service, the Farm Management (reflective of the new regime) is obliged to take the matter up with the Land Rights Management Committee (LRMC). The LRMC has to consider the matter and advise on steps to be taken. In the event the decision is that the worker-dweller has to leave the farm, the Municipal Council must provide the farm-dweller with suitable accommodation, within a prescribed period.

If the farm-dweller had not completed ten years of service, the ordinary conditions provided for by the country’s labour relations system will apply.

If the farm-dweller had completed ten years of service, and had earned tenancy rights, the LRMC has to take this into account if it determines that the farm-dweller had to leave the land.

These conditions should constitute a regime of the protection of relative rights on land, in alignment with the provisions of the Freedom Charter, the NDP and the United Nations Agenda 21.

E. HOW IS THIS WORKER-EQUITY GOING TO BE FINANCED?

There are two main sources of financing the worker-equity:
through the Land Reform Programme; and,
through own historical contribution by the worker.

The Land Tenure Act (and so should the consolidated draft of ESTA and the LTA) recognized the farm-worker’s cumulative rights, based not only on the fact that a worker lived on the farm for a particular period, but on contribution he /she made to the development of the farm, through his / her labour power.

That labour power was never fully compensated for, in the form of wages. That much is clearly demonstrated by the vast difference between the affluence of the farmer and the abject poverty of the farm-worker.

The relative equity stakes recognize this full contribution, which the exploitative wages have denied the workers for all of those years. The contribution by the government is an attempt at restoring the dignity of the worker.

Contribution by the state must go to further development of the farm. With the acquisition of equity by farm-workers must come a fundamental change in the control mechanism of the farm.

The acquisition of equity is, and must be seen to be, a fundamental game-changer. It introduces co-management of the farm, based on relative equity-holdings and the capacity of each participant in production and management.

The equity-holders must establish an Investment and Development Fund (IDF) which must be representative of all equity-holders to the farm.

The Government (drdlr) will deposit its contribution into the IDF, not to the farmer, for that would be double compensation. He/she will benefit, like all others, from dividends allocated by the IDF. With that contribution, the government earns the status of Ex-officio member of the management of the Fund; and, should be entitled to a single representative on it.

We are, therefore, introducing a system of collective ownership, based on relative equity-holdings. However, although the government has full speaking rights in the management of the IDF, it will not have voting rights. Those rights should be the preserve of the equity-holders.

F. EXPLANATORY NOTE

Figure 1 below is attempting to illustrate the workings of the Model described above. It is a graphic attempt at operationalising the constitutional principle of ‘Just and equitable’ re-distribution of land.

Figure 1: A Radical Redistributive Model For Land Reform

G. CONCLUSION

The Extension of Security of Tenure Act and the Labour Tenants Act were meant to strengthen the security of tenure of farm-workers. They were meant to make it relatively difficult for the farmer or farm manager to evict farm-dwellers. At least not without due process! However, arbitrary evictions continue to be the order of the day. The policy measures introduced here, backed by several authoritative constraints, are meant to change the agricultural landscape fundamentally. What is being introduced here is not just a humane set of socio-economic relations; it is a redistributive model of agricultural growth.

These policy proposals are meant to strengthen the position of both the farm-worker and the farmer, as people working the land. These proposals recognize that both the worker and the farmer have vested interest in the land; and, both want to improve their living conditions through working the land.

There is a direct relationship between these policy proposals and the ANC’s policy on the limitation of land holdings by private individuals and entities, now contained in the Agricultural Landholdings Policy Framework of the Drdlr. The Model can easily be adapted, where there is enough goodwill between a farmer and his or her employees, in the implementation of the land tenure model of ‘Freehold with limited extent’, and its cousin, land access and ownership by foreign nationals: ‘A combination of freehold with limited extent and leasehold’.

The legal rights of these two important actors, in so far as they relate to the farm, are historically not equal. The farmer is, historically, the sole owner of the land and has full responsibility for its up-keep and maintenance, including ensuring that workers on the land have decent living conditions, are paid decent wages and he pays rates and income tax, while the farmworker does not carry such legal burdens. This relativity of rights and responsibilities is fully recognized.

However, these policy proposals introduce a new system of substantively recognizing the relative contributions of the farmer and farm-workers to the development of the farm as well as the integrality of their relative rights on the land – on the one hand, the farmer has original rights while, on the other, farm-workers have accumulated or secondary rights, as defined in the Land Tenure Act.

The moral basis for these proposals is that fellow South Africans who benefitted from the proceeds of the land dispossession wars and the race-based segregation policies and laws of successive Colonial and Apartheid regimes have a moral duty and responsibility to contribute to the restoration of justice and national reconciliation effort. Secondly, maintaining the current status quo is politically undesirable and unsustainable.

Nkwinti, GE (MP)
Minister: DEPARTMENT OF RURAL DEVELOPMENT AND LAND REFORM

Black poverty ‘due to 1913 Land Act’: Zuma

Jacob Zuma
Jacob Zuma

South Africa has not fully reversed the damage done by the Natives Land Act, President Jacob Zuma said on Thursday.

“A great wrong was done, and now it is up to us to follow-up by doing a great right,” he said in a speech prepared for delivery at a commemoration of the centenary of the 1913 Land Act.

“We are now in charge of our own destiny. We have achieved a successful transition to democracy, but we have not yet fully reversed the dreadful pattern of poverty and landlessness — the havoc created by the Natives Land Act,” said Zuma.

“Correcting the consequences of this act is a critical cog in the wheel of state. It is a crucial component in the National Development Plan.”

The act dispossessed land from black and “native” South Africans.

Zuma said it marked the beginning of the socio-economic challenges the country now faced.

“The act was enforced for 78 years until it was repealed in 1991, and during these many years it did enormous damage, so much so that despite 22 intervening years, the legacy of the act stubbornly persists,” he said.

“We take our hats off to the black people of this country and to the Khoi and the San people, for not allowing the pain of the past to stand in the way of building the present and the future.

“The pain of being driven off one’s land is worse than anything one can imagine.”

Zuma said the government admitted that the land redistribution progress had been slow, and that the 2014 redistribution target would not be met.

Until now, only 6.7 million hectares of land had been transferred through redistribution and restitution.

“We call on all South Africans to commemorate this landmark, with a view to correcting the wrongs of the past and to reinforce reconciliation,” Zuma said.

“We urge the public to participate in the process of improving land redistribution and reform to reverse the impact of the 1913 act.” – Sapa

Pieter Mulder says protectorates Botswana, Lesotho and Swaziland should be included in percentage black land

An old map from 1922 showing British South Africa and the protectorates
An old map from 1922 showing British South Africa and the protectorates

During a debate on the 1913 Land Act today, Dr. Pieter Mulder of the Freedom Front Plus said that the former British protectorates Botswana, Lesotho and Swaziland should be included when calculating the percentage of black-owned land in South Africa. All three territories formed part of British South Africa in 1913 and were also administered by South Africa.

Dr. Mulder said: “In the thoughts of many, the surface of these areas was included in the land of 1913. The one gets a 40% – 60% land distribution and even a 50 – 50 depending of how it is calculated. Until after the 1936 Act, there were attempts to incorporate these protectorates into South Africa.”

Here follows the full text of his speech:

“I have two problems with a debate such as this one:

“My first problem is that when we talk about history, all the facts, and not only the facts that suite us, should be placed on the table.

 “The core of the objection against the 1913 Act is that it had divided the land between black and white and that only 13% of the land was given to black people. This is a valid criticism about injustices of the past. But it is based upon today’s facts and not based upon the facts of 1913.

 “All the maps of 1913 indicate that the Union of South Africa was part of British South Africa. British South Africa in 1913 consisted of South Africa and the three former protectorates, today known as Botswana, Lesotho and Swaziland. In 1913 there was no question that these protectorates would one day become independent states. Botswana was until 1965 still managed from Mahikeng in South Africa. It was generally accepted that the protectorates would in the long run be incorporated into South Africa. That is why the South Africa Act of 1909, which was approved by the British parliament, provided for the incorporation of these three areas into South Africa at a later stage.

 “In the thoughts of many, the surface of these areas was included in the land of 1913. The one gets a 40% – 60% land distribution and even a 50 – 50 depending of how it is calculated. Until after the 1936 Act, there were attempts to incorporate these protectorates into South Africa.

 “I do not see it as my responsibility to try and defend 1913. What I do believe, is that it would only be reasonable, if in our criticism, we to try and understand all the arguments and thoughts of 1913.

 “Why did this incorporation not succeed?

 “Because there also other views. The chiefs of these protectorates seriously objected to the British in London against incorporation. Eventually they succeeded and in 1966 and 68 these areas became independent, which created the current set of facts.

 “My second problem: It is not wrong to hold debates on the past. But such a debate is only sensible if something could be learnt from it from the future.

 “The past cannot be changed through a lot of talking. That is why the FF Plus does not believe in a better past but in a better future. Little has been said about what we have learnt from the past and how we can succeed with land reform in 2013 without causing famine. Nothing has been said about how food will be provided for 52 million South Africans, of whom 70%  will shortly be living in urban areas and this, while we only have 13% of good agricultural land. Little has been said about how we could better utilise the thousands of hectares of communal land.

 “It is the future and this debate which we should be having now if we want to make South Africa a better place for all.”

ANC wants to get more ‘radical’ on taking land from whites

landhungerThe centenary of the 1913 Natives Land Act provides an opportunity for South Africa to evaluate progress made in land redistribution, the ANC said on Wednesday.

“The centenary… provides an opportune moment to evaluate how far we have come in our quest to realise the aspiration of the landless and dispossessed majority,” African National Congress spokesman Jackson Mthembu said.

Wednesday marked 100 years since the promulgation of the act, which dispossessed indigenous Africans of land.

Mthembu said ANC conferences had identified land reform and rural development as a priority for socio-economic transformation. The last national congress in Mangaung called for a radical and rapid break from the past.

It resolved to replace the willing seller, willing buyer principle with the “just and equitable” principle.

“Mangaung further resolved to expropriate land without compensation where such land is acquired through unlawful means or used for illegal purposes having due regard to section 25 of the Constitution,” Mthembu said.

Of the targeted 24.6 million hectares to be redistributed, only four million hectares had so far been transferred to black people and communities, he said.

The ANC Youth League condemned the slow pace of redistribution of land since 1994.

Earlier, the so-called Economic Freedom Fighters (EFF) said government had failed to redistribute land to previously disadvantaged groups.

“[The] government of South Africa has failed to use almost 20 years of democratic dispensation to address and redress the land question,” spokesman Floyd Shivambu said.

“Our people remain in squatter camps, informal settlements, and non-arable rural communities with no forms of subsistence because they do not have access to land.”

Shivambu said government had to pay particular attention to the country’s food economy.

“Food production, packaging, transportation, marketing, advertising, retail, and trade should constitute one of South Africa’s biggest economic sectors.”

South Africa needed to provide subsidies for small-scale farmers and open packaging and retail opportunities.

He said the EFF would demand expropriation of land without compensation.

The Food and Allied Workers’ Union (Fawu) called on all South Africans to observe a moment of silence in commemoration of the act.

“We will be calling on our government to give priority to a faster delivery of land reform and transformation of land ownership in the country,” said Fawu general secretary Katishi Masemola.

Democratic Alliance leader and Western Cape premier Helen Zille, said her province had prioritised the finalisation of land claims which had been unfinished under previous governments.

“We understand that justice delayed is justice denied. In the DA-governed Western Cape we are very happy that all but one of the land claims has been finalised and the one outstanding claim is on a clear path to resolution.” – Sapa

Zille joins ANC and Malema chorus in calling for ‘land reform’

Helen Zille
Helen Zille

The legacy of the 1913 Land Act was still with South Africa and so it is the duty of the state to implement effective redress through land restitution, Western Cape premier Helen Zille said on Monday.

“This will never remove or fully compensate for the pain suffered but it is a major step towards the restoration of dignity,” Zille said in a speech prepared for delivery in Cape Town.

“Effective delivery enables our society to own our future and it creates opportunities for active citizens to create the future of their design.”

Zille was speaking at the commemoration of the Natives Land Act of 1913.

She said it was critical to fulfil the redress and reconciliation mandates and that redress enabled society to honour the good in the past and acknowledge the bad.

There would be challenges in implementing land restitution and it required a balancing of different interests.

“There is no one-size-fits-all solution and each case has to processed in its own context,” Zille said.

She said whenever laws and policies were introduced in the past there had always been people who were willing to stand up and raise their voices and the 1913 Land Act compelled a generation of anti-apartheid activists.

History had shown that “evil triggers a backlash from good”, she said.

“Wherever injustice and oppression have reared their ugly heads, they have inspired resistance and protest to challenge it.

“The reason for this backlash from good against evil is not just because principles and values like freedom and justice are violated, but because human lives are deeply affected.”

Speaking at the same event, Cape Town mayor Patricia De Lille said the city was playing its part in ensuring redress and reconciliation took place to ensure land reform happened.

“In the value chain of restitution, the City of Cape Town plays its part to ensure that the Land Claims Commission is in a position to conduct its social function with those waiting for justice,” she said in a speech prepared for delivery.

“And most significantly, land restitution is featured as an objective in our strategic blueprint for the city, the Integrated Development Plan (IDP), unlike other cities.”

She said her career had been focused on fighting to address the “imbalances of history” but that it was also a personal fight for her as she remembered how her grandmother was forced to move because of the Group Areas Act.

“Our mission is to ensure that everyone has a stake in Cape Town.

“It’s why we are working hard to build a caring and inclusive city. And to build that future, we must ensure that we face up to our history, as painful as it is,” De Lille said. – Sapa