ECONOMIC AND FISCAL IMPACT OF LAND AND AGRARIAN REFORM IN SOUTH AFRICA
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1 ECONOMIC AND FISCAL IMPACT OF LAND AND AGRARIAN REFORM IN SOUTH AFRICA by Eckart Kassier and Michael Cherry 1 The International Food Policy Research Institute (IFPRI) has been awarded the above assignment by the Department of Land Affairs. IFPRI has in turn engaged Agri-Africa to develop a spectrum of farm typologies (i.e. not average but typical farms), the results of which will be incorporated in a Social Accounting Matrix (SAM) to determine the impact of agrarian and land reform in South Africa. Given the size of the budget, the inputs and results should be seen in the light of a broad brush approach. Agri-Africa put together a team of experts to develop typologies for the enterprises and magisterial districts listed in Table 1. The selection of the enterprises was based on an objective that would include those most important in terms of gross value of production. In addition an attempt was made to achieve a reasonable geographic spread. The decision on the magisterial district was based on what the consultants believe is the most representative one, taking into consideration that IFPRI s budget constraint limited the magisterial districts that could be included to around ten. In the end the consultants developed twelve typologies based on eleven magisterial districts, the broiler and egg typology being generic. In the expert s view the developed typologies could also be extrapolated (in a broad brush way) to the magisterial districts shown in Table 1. Typologies were developed for large scale (corporate, top third size-wise) and commercial (family owned, bottom third size-wise) farming operations. It is assumed that the difference between these two typologies is mainly one of size. However, the commercial category could also represent a typical BEE farm with the addition of the cost of monitoring. The next category is a typical family small holding (small-scale commercial), the maximum size of operation being determined by what the farm family plus a few hired seasonal workers in peak seasons can manage and finally a subsistence typology which is operated by the farmer plus occasional help from his/her household. The basis for the development of the typologies were COMBUD budgets where these were applicable. Other budgets were obtained from the relevant industry organisations. In some cases, no accessible budgets could be located. In such cases the budgets had to be developed from basic principles. TABLE 1 : TYPOLOGIES DEVELOPED, BASE MAGISTERIAL DISTRICTS AND EXTRAPOLATIONS BASE EXTRAPOLATION TYPOLOGY MAGISTERIAL- STAT. STAT. MAGISTERIAL DISTRICTS DISTRICT REGION REGION Maize + sunflower Bothaville All districts 1 With acknowledgement to Ingrid du Toit, Peter Dall, Kojo Aihoon, Kit le Clus, Rex Hudson, Peter Greene who developed a number of the typologies.
2 20 All districts 25 All districts 27 All districts 28 All remaining districts 55 All districts 56 All districts 57 All districts 61 All districts 62 All districts 64 All districts 66 Lydenburg 73 Kempton Park 74 All districts 75 All districts 76 All districts 77 All districts Wheat + maize Bethlehem All districts 28 All districts 29 All remaining districts 30 Brandfort;Winburg;Marquard;Clocola n; Excelsior;Ladybrand;Wepener;Dew wetsdorp Sugar cane Mtunzini All districts 47 Umbumbulu 48 Inanda 51 Pietermaritzburg 52 Camperdown;Umzinto;Richmond 53 All districts 55 New Hanover 59 All remaining districts Potato + tomato Bronkhorstspruit Groblersdal 66 White River 67 All districts 68 All districts 69 All districts 70 All districts 71 All districts 72 All districts 73 All districts 74 All districts 75 All districts 76 All remaining disrticts 77 All districts 78 All districts 79 All districts Apples + pears Joubertina 42 2 Somerset West 3 Caledon 6 Ceres 7 Piketberg Citrus + mango White River Groblersdal 66 Nsikazi;Barberton 67 Phalaborwa;Giyani;Mapulaneng
3 69 Waterberg 71 All disrticts Avocado + litchi Soutpansberg Pietermaritzburg 52 Richmond 53 Port Shepstone 65 Nelspruit 66 Barberton;White River;Water-Boven 71 Letaba Table grapes Worcester 6 2 Paarl;Wellington; 6 Robertson;Montagu 10 Kenhardt 15 Prieska 16 Barkly West Wine grapes Worcester 6 2 Wellington 3 Swellendam 5 All districts 6 Tulbagh;Robertson;Montagu 8 Vredendal 10 Namakwaland 15 Prieska Wool + mutton Middleburg See Tables 2 and 3 for carrying capacities Beef and dairy Mount Currie All districts 36 Indwe;Elliot;Maclear 52 Ixopo 54 Polela;Underberg;Impendle 55 Lions River;Mooi River 56 Klip River;Bergville 57 All districts 61 All districts 62 All districts 64 All districts except Piet Retief 66 Lydenburg Chicken meat + eggs Generic X X X In the case of the wool and mutton typologies, the experts maintain that the budgets for different types of small stock differ little, no matter what Karoo type it is. The only significant difference is the carrying capacity, i.e. the hectares per small stock unit, which is shown in Table 2. TABLE 2 : WOOL AND MUTTON TYPOLOGIES - CARRYING CAPACITIES IN KAROO-TYPE MAGISTERIAL DISTRICTS Magisterial districts Hectare Hectare Hectare in statistical regions per SSU per LSU per LSU Carnavon Beaufort West Laingsburg Murraysburg Prince Albert
4 Lady Grey Aliwal North Venterstad Steynsburg Hofmeyr Middelburg Cradock Aberdeen Graaff-Reinet Willowmore Namakwaland Kenhardt Gordonia Calvinia Sutherland Williston Fraserburg Victoria West Hopetown Britstown De Aar Philipstown Richmond Hanover Colesberg Noupoort Source : T Hersellmann, Grootfonetin College, Middelburg A summary of the main parameters of the typologies, grouped by scale of operation, that were developed appears in Tables 4a to 4d. More details about the various typologies can be found in the appendices. TABLE 4a: SUMMARY OF TYPOLOGY PARAMETERS - LARGE SCALE Maize & sunflower Hectares Wheat & maize Hectares Sugar cane Hectares Vegetables Hectares Apple & pear Hectares Avocado & litchi Hectares Table grapes Hectares Wine grapes Hectares Wool and mutton Hectares Beef Hectares Broilers & eggs Broilers Doz x x x x x x * Directly allocatable harvest inputs ** Directly allocatable productioninputs
5 TABLE 4b: SUMMARY OF TYPOLOGY PARAMETERS - MEDIUM SCALE Maize & sunflower Hectares Wheat & maize Hectares Sugar cane Hectares Vegetables Hectares Apple & pear Hectares Avocado & litchi Hectares Table grapes Hectares Wine grapes Hectares Wool and mutton Hectares Beef & dairy Hectares Broilers & eggs Broilers Doz x x x x x x TABLE 4c: SUMMARY OF TYPOLOGY PARAMETERS - SMALL SCALE Maize & sunflower Hectares Wheat & maize Hectares Sugar cane Hectares Vegetables Hectares Apple & pear Hectares Avocado & litchi Hectares Table grapes Hectares Wine grapes Hectares Wool and mutton Hectares Beef & dairy Hectares Broilers & eggs Broilers Doz 7600 x x x x x x TABLE 4d: SUMMARY OF TYPOLOGY PARAMETERS - SUBSISTENCE Maize & sunflower Hectares Wheat & maize Hectares Sugar cane Hectares Vegetables Hectares Apple & pear Hectares Avocado & litchi Hectares Table grapes Hectares Wine grapes Hectares Wool and mutton Hectares Beef & dairy Hectares Broilers & eggs Broilers Doz 347 x x x x x x Tables 5 shows the same parameters as in Tables 4a to 4d, but grouped by typology.
6 TABLE 5 : SUMMARY OF TYPOLOGIES ACCORDING TO SCALE OF OPERATION MAIZE AND SUNFLOWER Large scale Hectares Medium scale Hectares Small scale Hectares Subsistence Hectares WHEAT AND MAIZE Large scale Hectares Medium scale Hectares Small scale Hectares Subsistence Hectares SUGAR CANE Large scale Hectares Medium scale Hectares Small scale Hectares Subsistence Hectares VEGETABLES Large scale Hectares Medium scale Hectares Small scale Hectares Subsistence Hectares APPLES AND PEARS Large scale Hectares Medium scale Hectares Small scale Hectares Subsistence Hectares CITRUS AND MANGO Large scale Hectares Medium scale Hectares Small scale Hectares Subsistence Hectares AVOCADO AND LITCHI Large scale Hectares Medium scale Hectares Small scale Hectares Subsistence Hectares TABLE GRAPES Large scale Hectares Medium scale Hectares Small scale Hectares Subsistence Hectares WINE GRAPES Large scale Hectares Medium scale Hectares Small scale Hectares Subsistence Hectares WOOL AND MUTTON
7 Large scale Hectares Medium scale Hectares Small scale Hectares Subsistence Hectares BEEF AND DAIRY (large scale, beef only) Large scale Hectares Medium scale Hectares Small scale Hectares Subsistence Hectares BROILERS AND EGGS Large scale No/doz /1.5m Medium scale No/doz 5500/ Small scale No/doz 1000/ Subsistence No/doz 20/
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