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Farm Equity Schemes Moratorium Lifted

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The moratorium on farm equity schemes has been lifted subject to specific conditions being met.

In a joint statement on Saturday, the Department of Rural Development and Land Reform, Farm worker Equity Shareholders and commercial farmers said that following a Farm Equity Schemes (FES) review workshop comprising of government, commercial farmers as well as farm workers on Friday the moratorium was lifted.

The moratorium was placed by the department in June 2009. Lack of empowerment of beneficiaries, a lack of tenure security for resident farm workers and poor working relations between the managers and the shareholders; among other things led to the moratorium being invoked.

Following a November 2010 workshop a task team was set up comprising of representatives from farm worker share equity scheme partners and commercial farmers was formed. This then led to Friday’s workshop which got feedback from the district, provincial and national councils of stakeholders, as mandated, regarding whether or not the moratorium should be lifted.

Clear criteria for project and beneficiary selection, the training in both technical and personal management skills as a joint effort between  government and farmers should be undertaken are some of the recommendations put forward for the moratorium’s lifting.

Funding and the role of the state should be clarified within a partnership arrangement with the Land Bank, IDC and the Land Reform Credit Facility (Khula) and others and that benefits derived from the farming business to be distributed proportionally amongst all shareholders in relation to inputs are some of the recommendations.

Last year, Minister Gugile Nkwinti said the moratorium would be lifted this year. Since the inception of FES in 2006 government has invested R500 million. FES is a business arrangement that allows farm workers to obtain shares in agricultural operating companies or farms.

“I believe that these conditions will achieve our principles of the deracialisation of the rural economy, equitable allocation and use of land across gender, race and class, and production discipline for national food security. The department has therefore agreed to lift the moratorium Farm Equity Schemes subject to the conditions mentioned,” said the department’s spokesperson Eddie Mohoebi. – BuaNews

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Alan Straton

Chief Cook, Bottle Washer and Broom Mechanic at MyPE
Passionate about Port Elizabeth and definitely NOT packing for Perth. Alan's ethos is epitomised in the words of Nelson Mandela; "I have fought against white domination and I have fought against black domination. I have cherished the idea of a democratic and free society. If need be, it is an ideal for which I am prepared to die." See more articles by Alan.