AGRICULTURE AND LAND


Chapter6

Provincial Budgets and Expenditure Review


Agriculture and Land


Importance of Agriculture

- Implements, machines, seeds, fertilizers, etc

- Agri-processing industries

Reforms in the sector offer opportunities for BEE


Broadening Access to Agric


What can be done for emerging farmers?

· Animal health

- control of ticks and related diseases - infrastructure and chemicals (dip or injections that prevent external parasites)

· Soil and plant science

- Soil sampling and testing - appropriate uses

- Use of high yielding hybrid seeds, fertilisers, etc

- Crop rotation

· Management of farms as business ventures


Comprehensive Agricultural Support Programme(CASP)

· CASP was introduced in 2004/05 to complement LRAD

· It has six main priority areas:

Do prov. budgets reflect CASP priorities?


Budget & Expenditure Trends

· Total sector budget grows by 11,7% over the 2005 MTEF from R4,6 bn in 2004/05 to R6,4 bn in 2007/08.

· Provinces account for more than 70% of total expenditure - R3,4 bn in 2004/05 from R2,3 bn in 2001/02

· Over the 2005 MTEF prov. budget grow by 11,0% on average to R4,7bn in 2007/08

CASP grant to compliment Farmer Support R12 bn over the 2005 MTEF


Provincial Expenditure by Programme

Table6.4 Provincial agriculture expenditure by programme, 2001/02 to 2007/08

R million

2001/02

2002/03

Outcome

2003/04

2004/05 Preliminary outcome

2005/06 2006/07 007/08

Medium-term estimates

Adminstration

539

610

671

833

798

865

937

Sustainable resource

226

246

272

263

468

537

577

Farmer support and development

991

1,170

1,400

1,588

1,745

1,990

2,215

Veterinary services

255

280

308

340

370

400

423

Technology research and development services

181

220

244

224

281

290

309

Agricultural economics

20

23

33

46

59

65

70

Structural agricultural training

88

93

123

152

155

171

183

Total

2,299

2,641

3,052

3,447

3,876

4,318

4,714

 

[PMG Note : Tables for the Programme 3: Farmer Support & Development including CASP for the years : 2004/05; 2005/06;2006/07; and 2007/08 :Not Included]


[PMG Note : Table for the Personnel vs Non-Personnel Expenditure: Not included]


Budget & Expenditure Trends

· Proportion of personnel spending declines from 69,4% in 2001/02 to 51,9% in 2007/08.

· Notable reduction in personnel share in KZN, Limpopo, EC and FS provinces

· Non personnel provides complimentary inputs - farm infrastructure, transport1 animal health, etc

Service Delivery Trends

Farmer Support & Development Programme achievements include:

- Training provided to 11 776 emerging farmers and 2153 commercial farmers

- Implementation of mentorship programmes for emerging farmers and commercial farmers (481 and 217 respectively);

- Advice support to 35 494 emerging farmers and 9164 commercial farmers; and

- Finance provided to 164 farmer development projects.

- Progress in infrastructure development ie revitilisation of irrigation schemes, and dipping for communal grazing

Land Reform

2007/08.

- Land Restitution takes up the largest share on the land reform programme

- Restitution increases at an annual average of 48% from R1,4 bn in 2004/05 to R3,8bn 2007/08.


Concluding Remarks

- Provinces that incorporated homelands spend more on low skilled personnel, but need appropriate skills

- Measuring performance and quantifying key inputs is major challenge for accountability and determination of funding gap

- Increasing pace of land reform increases need for effective farmer support programme

· Need to redirect research towards the need of small scale farmers

· Need to extent financial services to the poor in a sustainable way

· Appropriately skilled personnel to provide technical and business development training and advice to farmers


Questions and issues for discussion

Are government support programmes for emerging farmers working?

- Do we know how many extension officers am needed vs those available?

- Do we have enough vets?

Are we training enough people in these fields?

- Is there clarity on norms & standards for delivery of farmer support services

- What do outbreaks of diseases imply:

· For the efficacy of preventative programmes?

· For the risk of transmission of diseases to humans;?


Questions and issues for discussion

- What is the appropriate balance between funding for land reform (LRAD) and for farmer support services?

- Do provincial budgets reflect CASP priorities?

- Is Research & Development meeting the needs for sustainable development and funding of small scale farmers?

- How do we address information gaps?


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