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Fast Facts No 2 February 2005

THE RIGOURS OF COMMERCIAL FARMING

Drought, competition from subsidised imports, empowerment and redistribution requirements, and a low maize price are some of the challenges under which South African farmers operate at present. Even at the best of times, farmers have many difficulties to overcome in order to prosper.

Farmers in the former RSA enjoy an advantage over those in the former homelands (see Fast Facts January 2005). The tables published in Fast Facts this month, however, show that the path to commercial success in farming is full of hurdles for a great many farmers at all levels.

Despite the widespread commercialisation of agriculture, many commercial farming operations still do not have access to essential agricultural services and facilities. There are also stark contrasts between established farmers and struggling ones.

In 2000 in the former RSA, 48% of commercial farming operations had no access to water for irrigation, 49% were without grain silos, and 67% were without warehouses. Telephone services were not readily available to 36% of farming operations in this area, about 33% lacked electricity for farming purposes, 30% did not have access to a road that led from the farm to a market, and a further 29% were without the means of transporting their produce.

The picture looked even bleaker in the former homelands. Most farming operations in this area lacked access to water for irrigation (88%), grain silos (96%), warehouses (97%), telephone services (90%), electricity for farming purposes (87%), roads that led to a market (90%), and a means of transporting their produce (81%).

The number of commercial farming units in South Africa has declined significantly over the years. From 1936 to 2002, the number decreased from 104 249 to 45 818 (or by 56%) while the area being farmed remained the same.

Trends over a shorter period still show a considerable decline in the number of farming units. From 1993 to 2002, the number dropped by 21% from about 57 980 to 45 818. There were 1.2 farmers to a single farming unit in 1993 while there was virtually one farmer for every farming unit in 2002. At the same time, farm owners and their family members diminished by 33% while employment in agriculture was reduced by 15%.

Between 1993 and 2002, gross farm income went up by 37%, total expenditure on farming went up by 32%, and the market value of farming assets decreased by 29%.

The current agricultural climate presents a daunting challenge for all farmers. The harsh conditions facing established farmers are bound to prove even more difficult for emerging farmers and those trying to make the transition from subsistence farming.

— Kerwin Lebone

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