A Busy Season for South African Agriculture
This time of year is particularly demanding for South African farmers. Wine and table grape producers are in full harvest, while stone fruit is also in season. The summer grain planting season faced early challenges, but overall estimates remain promising despite persistent drought conditions in some regions. Meanwhile, livestock farmers are grappling with price pressures and subdued demand, although export prospects are improving due to enhanced biosecurity measures and expanded market access.
Despite these challenges, the agricultural sector is projected to grow by at least 3.5% this year, with over half of its produce destined for export markets. Renewed investment in infrastructure—particularly ports, rail, and roads—is further strengthening confidence in the sector. South African agriculture remains one of the country’s fastest-growing industries, consistently outpacing national economic growth.
Addressing Misinformation Around the Expropriation Act
The recent signing of the Expropriation Act on January 23, 2025, has sparked political controversy and unnecessary concerns within the agri-food sector. Misinterpretations of the Act’s intent have created uncertainty, affecting the investment climate in agriculture.
To clarify: no private property has been seized or confiscated, nor has any land been expropriated without compensation. Isolated incidents of land grabs and trespassing have been addressed. Additionally, claims linking farm murders to the signing of the Act are unfounded and irresponsible. Farmers remain committed to their work, ensuring food security and economic stability.
Organised Agriculture’s Role in the Expropriation Act
For years, AgriSA has actively participated in shaping legislation that impacts the agricultural sector. When amendments to the Expropriation Act No. 63 of 1975 were first proposed in the early 2000s to align with the 1996 Constitution, AgriSA played a crucial role in discussions. Leading up to the recent signing of the Bill, we engaged in NEDLAC and parliamentary processes from 2013 to 2020, contributing to the 2015 Expropriation Bill that laid the groundwork for the current legislation.
In 2024, we urged President Cyril Ramaphosa to either return the Bill to the National Assembly for reconsideration or consult the Constitutional Court on its constitutionality. Our appeal included an independent macroeconomic impact assessment by GOPA Group South Africa, reinforcing our stance that private property rights are essential for capital formation, economic growth, and job creation.
AgriSA’s Position on the Expropriation Act
AgriSA recognizes that expropriation in the public interest is a fundamental function of any government. Internationally, this principle is widely accepted, provided it is legally and constitutionally sound and ensures fair compensation. Importantly, the Expropriation Act remains subject to Section 25 of the Constitution, which has not been amended. This section guarantees that compensation must be just and equitable, balancing public interest with the rights of affected property owners.
While the Act allows for nil compensation in specific circumstances, this does not mean expropriation without compensation is inevitable. The principle of just and equitable compensation remains intact, requiring a thorough evaluation of all relevant factors. However, the agricultural sector remains concerned about the definition of expropriation and its implications. AgriSA will monitor cases closely, with guidance from Senior Counsel, to ensure private property rights are upheld under the Constitution.
The Vital Role of Property Rights in Agriculture
Land ownership is not a guarantee of agricultural success, but it is fundamental for securing financing. Farmers use their land as collateral to access loans for expansion and production. Between 2019 and 2023, agricultural debt at commercial banks averaged 52% of the sector’s GDP, highlighting the crucial role of private property in ensuring food security and industry stability.
AgriSA and other agricultural organisations continue to advocate for extending property rights to emerging farmers. The Department of Agriculture, Land Reform, and Rural Development has yet to release 2.5 million hectares of state-owned land acquired through existing land reform programs. Unlocking this land and granting secure title deeds to emerging farmers would significantly improve their ability to access financing and build sustainable businesses.
Expropriation Act vs. Land Reform
The Expropriation Act is often mistakenly equated with land reform, but the two are distinct. The Act does not grant new expropriation powers or replace existing land reform policies. The legal framework for land reform—including the Land Reform (Labour Tenants) Act, the Extension of Security of Tenure Act, and the Restitution of Land Rights Act—remains unchanged.
AgriSA has long supported land reform initiatives aimed at addressing historical injustices and creating a more inclusive agricultural sector. However, the biggest challenges facing new farmers are access to skills, financing, and secure land tenure. Even with proper training and land ownership, the unpredictable nature of farming presents significant obstacles. Nevertheless, the organised agricultural sector remains committed to supporting emerging farmers, with thousands receiving ongoing assistance.
Investment Continues Despite Uncertainty
Between 2018 and 2021, discussions around expropriation without compensation (EWC) led to the establishment of a Constitutional Review Committee to assess potential amendments to Section 25 of the Constitution. The rejection of the Eighteenth Amendment Bill in 2021 was a significant moment in reaffirming property rights within South Africa’s democratic framework.
An analysis of the Agbiz Agribusiness Confidence Index shows that, despite tensions during the EWC debate, farmers and agribusinesses continued to invest in their operations, ensuring national food security.
In my conversations with farmers, one message is clear: they remain steadfast in their commitment to agriculture. Despite political uncertainty, they will continue producing food, supporting rural economies, and driving the sector forward.
