Agri Portal South Africa

                                                MEDIA RELEASE                                    MEDIAVERKLARING

Agriculture disappointed with budget

During a time of international concern regarding food security and food prices, it is regretted that agriculture has been neglected in the budget and that agriculture simply disappears in the greater economic system while a different playing field is involved regarding agriculture.

TAU SA president, Mr. Louis Meintjes, said that agriculture enters the new financial year with a heavy heart. Farmers' land stay in controversy with the announcement that 4000 land claims will be finalized. "There is a danger of a rush against time to reach political goals.  Experience over the years has learned that many claims were proven not to be bona fide claims."

Farmers are facing some huge increases and which are of severe concern to them:

• The increase in the fuel levy by 28 cents per liter. Farmers' tractors, harvesters and other implements are never even seen on a public road, but they have to help with cross-subsidizing other non-agricultural related projects;
• The Gauteng tolling is coming in effect at the end of April. Taxis are exempted from the tolls but farmers will have to pay the full price in spite of the fact that they have to transport food and goods over long distances to the markets at great expenses. Although alternative routes will be restored, this will take a long time
• The increase of capital gains tax for companies to 66% can be disastrous. Most farms are structured in companies for economic reasons. If the pressure continues on farmers to sell their land in terms of land reform, they then have a tremendous amount of capital gains tax to pay. This will make it impossible for them to buy a new farm or business.

Very little of the R1, 9 billion that is allocated for the Department of Agriculture and the Land Bank will reach the commercial farmers and is likely to be given to emerging farmers.

Agriculture has thus essentially nothing to be excited from the budget.  There is the prospect of the refurbishment of the infrastructure. Unfortunately this will take a long time to finalize and in the mean time will cost much damage to farmers’ cars and tyres," said Mr Meintjes. “And off course there is always the doubt whether the right management processes will be followed, without any corruption, regarding the allocation of tenders so that funds will be utilized in the most productive way. "

Landbou teleurgesteld met begroting

 In ’n tyd dat daar internasionale kommer is oor voedselsekerheid en voedselpryse, word dit betreur dat landbou afgeskeep word in die begroting en dat boere eenvoudig in die groot ekonomiese massa verdwyn terwyl ’n ander speelveld ter sprake is vir die landbou.

TLU SA se President, mnr. Louis Meintjes, sê dat landbou die nuwe finansiële jaar met ’n swaar hart binnegaan.  Die aanslag op die boere se grond gaan voort met die aankondiging dat 4 000 grondeise afgehandel gaan word. “Die gevaar bestaan dat teen tyd gehaas gaan word om politieke doelwitte te bereik terwyl die ervaring oor jare al geleer het dat baie eise nie bona fide eise was nie.”

Boere staar geweldige verhogings in die gesig, en van die verhogings wat boere tot kommer stem is:

• Die brandstofheffing se verhoging met 28 sent per liter. Boere se trekkers, stropers en ander implemente sien nooit eers ’n openbare pad nie, maar hulle moet kruissubsidiëring toepas vir ander nie-landbou verwante projekte;
• Die tolgelde wat einde April in werking tree. Taxi’s word vrygestel maar boere wat teen groot koste van ver af voedsel vir die markte moet voorsien, sal die volle pond in tolgeld moet betaal. Die alternatiewe roetes wat herstel gaan word, gaan helaas nog lank neem en is nie eens ’n troosprys nie;
• Die styging van kapitaalwinsbelasting vir maatskappye na 66% kan rampspoedig wees.  Meeste boerderye is om ekonomiese redes in maatskappye gestruktureer.  As die staat nou druk plaas in terme van grondhervorming op boere om hulle grond te verkoop, moet hulle dan nog ’n geweldige bedrag aan kapitaalwinsbelasting betaal wat dit onmoontlik maak om ’n nuwe bedryf aan te koop.

Van die R1,9 miljard wat vir Departement Landbou en die Landbank toegestaan is, gaan waarskynlik baie min by kommersiële boere uitkom en waarskynlik vir opkomende boere gegee word.

Landbou het dus in wese niks om opgewonde oor te wees nie, behalwe die vooruitsig dat infrastruktuur opgeknap gaan word, maar dit gaan helaas nog lank neem om te realiseer, en gaan boere intussen nog baie skade aan voertuie en bande kos,” sê mnr. Meintjes.  “Daarbenewens bestaan daar altyd die twyfel of die prosesse reg bestuur kan word, of tenders behoorlik toegeken gaan word sonder bedrog en korrupsie en dat fondse op die mees produktiewe wyse aangewend gaan word.”