1 PORTFOLIO COMMITTEE ON RURAL DEVELOPMENT AND LAND REFORMPOLICY IMPERATIVES AND BRIEFING ON THE ONE HOUSEHOLD ONE HECTARE AND ONE HOUSEHOLD TWO DAIRY COWS POLICY PORTFOLIO COMMITTEE ON RURAL DEVELOPMENT AND LAND REFORM 7 June 2017
2 PRESENTATION OUTLINE RURAL TRANSFORMATION MODELPREAMBLE: LAND REFORM MANDATE NDP CONTEXT: FOOD SECURITY IN RSA PROBLEM STATEMENT RATIONALE FOR THE POLICY SPECIFIC OBJECTIVES OF THE POLICY KEY OUTCOMES PROGRAMME DESIGNS TAGERTED LAND INSTITUTIONAL ARRANGEMENTS PROGRESS TODATE 2
3 ONE HOUSEHOLD ONE HECTARE and 1HH2DAIRY COWS PROGRAMME RADICAL SOCIO- ECONOMIC TRANSFORMATION 3
4 PREAMBLE: LAND REFORM MANDATEThe 1996 Constitution sets out the following framework for land reform: That the state must take reasonable legislative and other measures, within its available resources, to foster conditions, which enable citizens to gain access to land on equitable basis (Section 25(5)). A person or community whose tenure of land is legally insecure as a result of past racially discriminatory laws or practices is entitled, to the extent provided by an Act of Parliament, either to tenure which is legally secure or to comparable redress (Section 25 (6)). A person or community dispossessed of property after June as a result of past racially discriminatory laws or practices is entitled, to the extent provided by an Act of Parliament, either to restitution of that property or to equitable redress (Section 25 (7)). 4
5 The Right to Food is entrenched as a constitutional mandate in RSA: FOOD SECURITY: The Right to Food is entrenched as a constitutional mandate in RSA: Section 27 (1)(b) of the Bill of Rights “every citizen has a right to have access to food and water”, Section 28 (1)(c) “every child has the right to basic nutrition, shelter, basic health care and social services”, Section 35 (2)(e) “every detained person and sentenced prisoner has a right to adequate nutrition”. 1HH1HA AND 1HH 2 DAIRY COWS POLICY 5
6 FOOD SECURITY: CONTEXTThe National Development Plan identifies food security and nutrition as both a consequence of poverty and inequality as well as a cause. As a result, the NDP makes reference to a number of steps that will improve food security and nutrition, including the expanded use of irrigation, security of land tenure (especially for women), the promotion of nutrition education, etc. 6
7 FOOD SECURITY: CONTEXT CONTINUE…Government of South Africa introduced the Outcomes Approach as a Programme of Action to realise service delivery. DAFF prioritises its efforts on three Outcomes: 4 – promoting job creation; 7 – ensuring vibrant, equitable and sustainable rural communities to attain food security for all and 10 – environmental sustainability. 7
8 PROBLEM STATEMENT: STATUS OF FOOD ACCESS (Stats SA)% of households with limited access to food decreased from 23,9% in 2010 to 22,6% in 2015. % of individuals decreased from 28,6% in 2010 to 26,4% in 2015. Between 2002 and 2015, the percentage of households that experienced hunger decreased from 23,8% to 11,3% (percentage individuals decreased from 29,3% to 13,1%). Although vulnerability to hunger has improved since 2002, it has remained static since 2011 with insignificant or no improvement. There has also been a 19.1% decline in number of households involved in agriculture production from 2.9 million in 2011 to 2.3 million households in 2016 The % of individuals with a difficulty to access food increased between 2014 and 2015 but has since decreased to 13 million. 2015 14,3 million 26,4% Number of people with inadequate or severely inadequate access to food 2014 14,1 million 26,2%
9 LEVELS OF FOOD INSECURITY
10 RATIONALE FOR THE POLICYThe NDP highlights the importance of agriculture for the economy by calling for an inclusive rural economy wherein rural areas are spatially, socially and economically well integrated and coordinated, where residents are economically active and food secure as a result of successful agrarian transformation and infrastructure development programmes as identified in Strategic Integrated Projects (SIP) 11 i.e. silos, fresh produce facilities, packing houses, abattoirs, dairy infrastructure, rural roads, branch train line, and ports. The New Growth Path (NGP) has identified agriculture as one of the key job drivers and the intention is to exploit opportunities within the sector to boost the smallholder sector by 300,000 households, create 145,000 jobs in agro-processing, and upgrading conditions for 660,000 farm workers. Agricultural employment is critical for improving incomes and inclusion of rural people. Therefore, the formulation of this policy forms part of Government’s undertaking to review all land reform policies as enunciated in the 2011 Green Paper on Land Reform, with a view to address issues relating to historical exclusion, equitable access to land, and participation in the optimal utilisation of land; as well as to address challenges relating to access to food at both household and national level to bring about household food security and national food self-sufficiency which can rightfully be attributed to the 1913 Natives Land Act amongst other historically discriminatory laws The review therefore aimed to advance the aspirations of the 1996 Constitution of the post-apartheid South Africa. In this instance, the most pertinent sections of the Constitution are 25, 26,27 and 36. In order for the Department of Rural Development and Land Reform to achieve the goal of job creation and inclusive growth in the agriculture sector and achieve equity in land ownership, access and tenure security, the One Household One Hectare programme is critical. This is essential to achieve the land reform vision that seeks to “rekindle the class of black commercial farmers that were systemically destroyed by the 1913 Natives Land Act”. The programme will contribute immensely to radical socio-economic transformation by bringing the under utilized land into production and establish new smallholder farmers to support the Agriparks Programme. 10
11 SPECIFIC OBJECTIVES OF THE 1HH1HA POLICYThe policy seeks to: Contribute to the reduction of poverty in rural areas; Revive a caliber of highly productive Black Smallholder Farmers and food producers. Build a sense of security of tenure; access to land, increase the involvement of individual households in production activities and minimize controversies on CPI led land projects; Create sustainable employment in rural households; Create viable rural small to medium agricultural enterprises; Build competencies and broaden the skills base for targeted households and communities; Restore the Social Capital and beauty of uBuntu as the currency that cements social cohesion among rural households Rebuild the sanctity and dignity of family life as the most critical success factor in the Rural Socio-economic Transformation efforts of the state. 11
12 OUTCOMES FOR 1HH1HA AND IHH 2 DAIRY COWSHH UNITS OF PRODUCTION supports primary producers Job creation/ people employed Business creation Beneficiaries development Health benefits Poverty alleviation/Food security Tenure security per household Access to land for Agricultural production Household income Access to markets Skills transfer hh 12
13 1HH1HA AND 1HH 2 DAIRY COWS POLICY13
14 1HH1HA AND 1HH 2 DAIRY COWS POLICY14
15 TARGETED FARMS/AREAS FOR IMPLEMENTATION OF THE PROGRAMMESTATELAND UNDER THE CUSTODIANSHIP OPF THE DEPARTMENT FARMS ACQUIRED IN TERMS OF THE PROACTIVE LAND ACQUISITION STRATEGY (PLAS) LAND ACQUIRED UNDER THE LAND RESTITUTION ACT LAND ACQUIRED FOR SETTLEMENT OF LABOUR TENANTS AND FARM DWELLERS COMMONAGE LAND COMMUNAL LAND UNDER TRADITIONAL COUNCILS 1HH1HA AND 1HH 2 DAIRY COWS POLICY 15
16 INSTITUTIONAL ARRANGEMENTS FOR 1HH1HA POLICYThe beneficiaries are the small scale household producers who will be members of registered primary cooperatives. Members deliver produce to processing facilities through primary cooperatives to Agri-parks for processing and markets. Primary cooperatives takes up ownership in the processing facilities. Primary Coops form Secondary Coops that take up equity in the 70% ownership share in the Agri-Parks. Secondary Coops will have representation in Tertiary Coops and takes up share equity in the RUMCs. The primary c-op is established for the households per sites -100 % owned by households. In terms of the policy each primary coop must save 10% profits and reinvest in the production. The secondary cooperatives is owned by primary co-ops in the Districts made up of all sites per District and 100% owned by the primary co-ops and will own a share in the 70% equity on the Agri-parks on behalf of the primary co-ops as primary producers and will also benefit from the total value chain. Tertiary Cooperatives pass benefits on to Secondary Cooperatives Secondary Cooperatives pass benefits on to primary Cooperatives Primary Cooperatives pass benefits on members VALUE ADDING CONTRIBUTIONS WAREHOUSING / DISTRIBUTION MARKET DELIVERY 1HH1HA AND 1HH 2 DAIRY COWS POLICY PRIMARY PRODUCERS AGRO PROCESSING 16
17 FUNDING SUPPORT FOR THE PROGRAMME1HH1HA SITE Mechanization Centre: Tractors, farm implements and hand driven tractor per hh. Operational Costs: Wages x12 months for participating hh, site manager, water, electricity, Mentor fees Farm infrastructure: Fencing, pack sheds, irrigation, tunnels, broiler units Productions inputs; Fertilizers, seeds, feed, trading stock( cows and chickens), medication, pesticides etc. 1HH1HA AND 1HH 2 DAIRY COWS POLICY 17
18 A PARTNERSHIP MODEL PDA, Municipalities and TC DRDLR HouseholdOUTCOMES: Poverty Reduction Food Security Access to productive Land Security of Tenure for Households Job Creation Inputs suppliers, GVT Agencies, Commodity Organizations in the Agricultural Sector and Unemployed Agricultural Graduates Household Producers 1HH1HA AND 1HH 2 DAIRY COWS POLICY 18
19 2: DELIVERY AND PROGRESS TO DATEOne Household One Hectare (1HH1HA) Projects Summary DRDLR initiated a land development programme called One Household One Hectare during 2015, targeting state owned farms, PLAS farms and communal land with the purpose of creating rural smallholder producers at household level to ensure food security, reduce poverty, sustainable employment, broaden skills base and to support the Agri-parks Programme. Currently, the Department has granted approval for 158 sites benefiting 5 734 households across the country and the Minister launched 6 sites as follows: Eastern Cape (3), KwaZulu-Natal (1) and Mpumalanga (2) at the value of R 30.4 million benefitting 689 households: in Gorah (14), Krugerpost (221), Mantusini (373), Westwood (18), Kwa-Mashabalane (41) and Libhaba CPA (22). Table 1: Launched Sites Province District Farm Name Year Expenditure Eastern Cape OR Tambo Mantusini July 2016 R 9 Sarah Baartsman Gorah July 2015 R Krugerspost August 2016 R KwaZulu Natal Umgungundlovu Westwood R 2 Mpumalanga Mkhondo Kwa-Mashabalane March 2016 R Libhaba CPA R TOTAL R 1HH1HA AND 1HH 2 DAIRY COWS POLICY 19
20 2: DELIVERY AND PROGRESS TO DATE cont2: DELIVERY The One Household One Hectare (1HH1HA) Projects Summary Furthermore 19 sites benefiting households are being implemented in Limpopo at the value of R33 million under the 1H1H Programme Table 2: Site District Assistance HH/s Expenditure Mphaila irrigation scheme Vhembe Crops 62 R Mapagane Cooperative Capricorn Storeroom/ Office, production inputs, seeds, salaries for workers and farm implements 83 R Mashushu Cooperative Packing facilities, silos 53 R Vallis & Canyon Office & store room with ablution facilities, production inputs and farm implements R Mamomotshetshethu Agricultural Primary cooperative Office & store room with ablution facilities 47 R Mahumane Project Mopani Drilling and equipping of 2 boreholes, fencing, and centre pivot. 101 R GRASP (Priska) 78 R Lorraine 6 R Julesburg 48 R Elandskraal Balemi irrigation scheme Sekhukhune Production inputs, tractor and implements. 223 R Tswaing Cooperaive Production inputs, irrigation system, debushing & tractor and implements 84 R Phetwane Irrigation Scheme (Pheteko) Production inputs & irrigation system, tractor and implements R Tsimanyane irrigation scheme (Punotema farming Cooperative) Production inputs & irrigation system 33 R Rapotokwane Faming Project Waterberg Fencing, water, production inputs 50 R Limburg Nwanedi Community Garden Debushing; fencing and production inputs 5 R Dzindi Irrigation Scheme Fencing ( 70 km), balancing dam, renovation of canals, production inputs 105 R Rambuda Irrigation Scheme Fence, production inputs, renovation of canals, balancing dam ( Weir) 103 R TOTALS = 19 Sites 5 Districts 1 294 HH R 1HH1HA AND 1HH 2 DAIRY COWS POLICY 20
21 SUMMARY OF HOUSEHOLDS PER PROVINCENUMBER OF HOUSEHOLDS SITES Gauteng 163 10 North West 305 12 Limpopo 1873 25 Mpumalanga 615 15 KwaZulu-Natal 675 24 Free State 548 Eastern Cape 1025 22 Western Cape 949 Northern Cape 1199 62 Total 6683 182 1873 163 305 615 554 675 1199 1025 949 1HH1HA AND 1HH 2 DAIRY COWS POLICY 21
22 2: DELIVERY AND PROGRESS TO DATE contThe Programme and Targets (1HH1HA) Projects Summary One House One Hectare Programme and 1HH Two Dairy cows also targeted to provide support to 384 households under the One Household 2 Dairy Cows Programme in the Annual Performance Plan (APP) of 2017/2018. These approvals will be further supplemented by the new sites that are already at advanced stage of 1H1H programme. The following table shows the summary of sites and affected households per Province CURRENT STATUS PROVINCE NUMBER OF SITES IDENTIFIED NO OF HOUSEHOLDS BUDGET ALLOCATION EC 22.00 R FS 12.00 554.00 R GP 10.00 163.00 R KZN 24.00 673 R LIMP 25.00 R MP 15.00 615.00 R NC 62.00 R NW 305.00 R WC 24 949.00 R TOTAL 182.00 R 1HH1HA AND 1HH 2 DAIRY COWS POLICY 22
23 THANK YOU NGIYABONGA 23 MANTUSINI 1hh 2 Dairy CowsWestwood 1hh1ha - KZN THANK YOU NGIYABONGA Hklaki and Swaign – 1hh1ha- Limpopo Mantusini Dairy parlour(1hh2 dairy cows Gora Farm - EC 1HH1HA AND 1HH 2 DAIRY COWS POLICY 23