A sustainable farm management model for land reform in Mpumalanga, South Africa

Abstract

The overall objective of the study was two-folded, firstly to develop inclusive sustainable and appropriate farm management model for land reform farming enterprises and secondly, to contribute considerably to rural development and the improvement of livelihood of rural people and land reform beneficiaries in Mpumalanga Province. In order to reach its objectives, the study started by reviewing literature on land reform. This was followed by a socio-economic-analysis to identify the main agricultural social and economic opportunities and factors inhibiting sustainable development in the province as well as performance and sustainability of commercial cooperatives and sole proprietorships citrus farms, the elements of success and failure in the CPA’s, state owned and small subsistence family farms and assessment of elements that promotes true sustainable citrus farming in Mpumalanga Province. Participants were sampled from five major categories of sampling frameworks and these included communal farmers defined as land reform beneficiaries (commonly known as CPAs) who acquired their farms through land redistribution programmes and households farmers defined as land reform beneficiaries, households that has acquired their farms without any support from state led approaches such as land reform programmes (sole proprietorships), private commercial cooperates which are producing citrus and state institutions which owns and manages citrus enterprises. However, only 190 farmers were eventually selected through stratification to participate in the study based on their willingness to take part. The breakdown of farmers who participated in the study, according to all three citrus regions in Mpumalanga Province, were 134 communal farmers (CPAs), 10 household farmers benefited from land reform, 20 private households famers, 20 private commercial cooperates and 06 state owned enterprises. The results showed that the business models promoted as part of both cooperatives and sole proprietors have succeeded in producing sustainable enterprises or distributing benefits to the shareholders. From Mpumalanga’s perspectives, the assessment of performance and sustainability of cooperatives and sole proprietorships appears to be largely positive. Enough material progress has been made in any of the cases outlined here to conclude that this type of farming enterprises are performing well or are delivering sustainable benefits to the shareholders over time. Despite a discouraging period; including land reform and unfavourable conditions for production as a result of climate change, it is clear that some fundamental progress have been made in the design and implementation of these enterprises. On the cooperative side, a detailed business plan, management model are adhered to and the mangers that are employed has farming skills and knowledge and cooperatives are able to deal with increased protectionisms. On the sole proprietor’s side, little firm commitments as comparing to cooperatives have been made regarding investment on employing managers with farming skills and knowledge, tackling the ever increasing international protectionisms and putting in place a detailed business plan. The main strengths of CPAs farms were: (i) the availability of a well-established export infrastructure (78%); (ii) access to export infrastructure facilities (76%); (iii) sufficient technology within the farm’s pack-houses (63%); and (iv) meeting of accreditation standards such as Good Agricultural Practice (GAP) certification (63%). Land reform households’ farms were faced by many weaknesses and threats than strengths. Although, the main strength for state owned farms were: (i) the availability of a wellestablished export infrastructure (67%); (ii) access by farmers to export infrastructure facilities (67%); (iii) sufficient technology within the farm’s pack-houses, good quality of the produce, and meeting of accreditation standards such as GLOBAL GAP certification (50%). All the farms under the study were failing due to high costs of farming inputs. At least 100% households’ land reform farms, 100% of commercial cooperatives, 100% of sole proprietors, 94% of CPAs, and 67% of the state owned farms were not sustainable as a result of inability to graduate from emergent to a commercial level. Moreover, the majority of CPAs (83%) and household farms (60%) were not equipped with the farming skills and farming knowledge. In terms of communication with stakeholders, majority of CPAs (73%), land reform households farms (90%) and state owned farms (67%) had a poor communication with key project sponsors. Land reforms households were faced with many challenges than CPAs and State owned farms combined. About 80% of the farms had no access to export infrastructure, while 90% of these farms produces citrus of a poor quality as compared to their counterparts. Only 10% had access to pack-house with modern technology and meets the accreditations standards. A significant percentage (46%) of the CPAs has access to new export markets. Furthermore, majority (59%) of the CPAs product is in high demand. The main threat facing farmers across all the three categories was cost and availability of water for irrigation. For example, households (100%), CPAs (99%), and state owned farms (83%). Of the CPA’s and land reform households’ farms respondents, 60% of CPAs and 100% of land reform households’ farms were confronted with competition from new entrants. In addition, 84% of CPAs, as well as 100% of household farms were choking with high protectionisms from external or international markets. On the whole, this study revealed, the need to have a comprehensive business plan with more emphasis on certain areas, such as operational/product plan, organization and staffing plan as well as risk planning to ensure true sustainable citrus farming. It revealed the need to improve education more particularly by acquiring at least secondary or tertiary education and farm management hierarchy must include youth. This study indicated areas of management, more particularly the principal activities of every farm management tasks that managers has to adhere, such as control, coordination and organizational/implementation. The study also raised land tenure or right to use land systems that need urgent attention. Title of communal land must be transferred to farmers, either as groups or individually. Those who are appointed to manage farming enterprises must have both technical knowledge and practical experience. Technical skills may include product management (be it a crop or livestock) to a level where it appeals to the market. The farmers must be exposed to these skills at a very young age. Farm managers should at least have more than eight in farming. Managers must be more capable of making most of the new opportunities by employing good technics in exploiting those opportunities and be able to handle new threats that would have been brought by changes in climate, technology, the economic climate, new legislation protecting the consumer. The conclusion is that the cooperatives and sole proprietors are sustainable and the chances of ensuring that CPAs, land reform farms and state owned farms are sustainable were most favourable for farmers who has responsive farm management model; would develop model that would properly influence the whole farm business planning to ensure sustainability of farms and shy away from the tendency of compiling business plans for government to release funds, but to represent the roadmap for the future. And those in executive positions would participate in the drafting of business plan; listing of farming risks with possible risk management strategies and recruitment of skilled and knowledgeable managers. Finally is recommended that the farming business must be treated as a commercial business in order to maximize outputs through effective agricultural practices that maximize income.