Land reform policies fail farming industry

Sprawling shanty towns in small towns that don’t have enough cash or resources to handle it is a stark consequence of government’s land reform policies. This is according to a report on research for the Internatinal Labour Organisation by four South African universities.

“State intervention aimed to improve the livelihoods of farmworkers since 1994 has largely failed to achieve its objectives because it does not appreciate the fortunes of workers and producers are interlinked‚” says the  report.

“During this research‚ clear signs could be found  both groups are exiting the agricultural sector‚” the report led by researchers from the universities of Cape Town and KwaZulu-Natal warns.

Government’s failure to help farmers deal with economic pressures in a globally competitive agricultural industry is a vital concern – hurting both rural municipalities and the farmworkers who legislation is intended to serve.

Farm subsidies‚ known as the Producer Support Estimate to South African producers‚ have shrunk to about 3% – well below the 20% average of the Organisation of Economic Cooperation and Development (OECD)‚ the report notes.

A consequence of farmers losing previous subsidies and competing against countries which offer more protection for its agriculture sector‚ while simultaneously being forced to comply with laws such as land tenure for workers‚ is   farmers’ profits have shrunk‚ many workers are hired on a casual basis and fewer live on farm property‚ instead moving to informal settlements in nearby towns.

What’s more‚ the raw sewage flowing freely in the informal areas is polluting the water supply – a danger  as irrigated crop exports have to meet strict regulations for their products to end up on supermarket shelves.

Government should play a much more active role to simultaneously bolster the collective bargaining power of producers (farmers) and workers‚ the report found.

Government can bolster  agriculture by:

lHelping to open up new export markets to make producers less beholden to their traditional markets. This will increase their bargaining power. More  marketing of South African agricultural produce by the state would also benefit the industry;

lEliminate non-tariff trade barriers imposed by other countries on SA  producers when negotiating trade agreements;

lConsider exempting exporting producers from the Competition Act to allow them to collectively set floor prices that would incorporate a living wage for farm workers;

lMore aggressively support the establishment of processing facilities and post-harvest facilities such as cold storage.

Recommendations on how the state can help farmworkers include:

lAdapt existing labour legislation to the fact  most workers are now seasonal;

lChange the Labour Relations Act to make it easier for both unionised and non-unionised workers to bargain collectively;

lRoll out the Public Works Programmes in rural areas during the off-season.

Researchers said workers and farmers raised lack of housing   as a key issue.

The research was conducted over the past two years with field research in eight provinces.