Farmers sound alarm over profit risks in South Africa’s new agriculture strategy
Farmers and policymakers clash as the government leans harder on transformation goals over economic outcomes.
SOUTH AFRICA – The ANC Study Group on Agriculture has backed the Department of Agriculture’s new Annual Performance Plans, which place transformation at the centre of policy.
But this move has triggered a sharp response from key players in the farming sector, who warn that a strong focus on transformation may endanger the country’s food production and long-term economic health.
The ANC Study Group believes that empowering black farmers and professionals is vital for both justice and progress in the sector. Their recent position paper argues that transformation is not only about righting past wrongs but also about improving food security for all.
“True transformation in agriculture will not only empower black farmers and professionals but also enhance productivity and sustainability by drawing on the talents of all South Africans,” the group stated.
They have also praised the Department’s effort to merge its Food Price Monitor and Input Cost Monitor into one report. This new tool, now known as the Food and Input Cost Report, is aimed at tracking food prices more effectively.
“Ensuring affordable, available food is not only a moral imperative but also foundational for a healthy, productive nation,” the group emphasised.
Other steps, such as opening more markets for black farmers and building a second veterinary faculty, have been welcomed by the group as signs that the Department is serious about making the sector more inclusive.
They stress that even with tight budgets, critical agricultural work such as research, food security, and farmer support must continue.
Farmers worry about business impact
However, leading farmer groups are raising alarm bells. Dr Theo de Jager of the Southern African Agri Initiative (Saai) says the Department’s plans miss key issues that matter to farmers running commercial operations.
“The transformation agenda is mentioned 92 times in the master plan, but profitability on farms, competitive value chains, sustainability and efficiency not once,” De Jager said.
He believes the plans may scare away private investors and lower South Africa’s standing in global markets.
Others, like TLU SA and suppliers’ groups, have not signed the Agriculture and Agro-Processing Master Plan. Their refusal signals deep concern about the policy direction.
Bennie van Zyl from TLU SA criticises how transformation is being carried out. “In many cases, extension workers cannot even help themselves,” he said, referring to the decline of state advisory services. He added that continued support for black economic empowerment and cadre deployment has hurt public service quality in farming.
A need for balance
Wandile Sihlobo from the Agricultural Business Chamber (Agbiz) says the country needs to think more clearly about what’s really causing food insecurity.
“The food insecurity is not due to a lack of nutritious, high-quality food… Access to food, especially for households without a regular income, appears to be the biggest problem,” he explained.
Sihlobo supports inclusion but warns that weakening the sector’s economic base would be short-sighted.
Meanwhile, in a recent announcement, Minister of Agriculture Thoko Didiza confirmed that the Department will launch a new funding facility for small-scale producers in early 2026.
It will be supported by both public and private lenders and will prioritise blended finance options. This marks a shift towards more structured support, especially for black-owned farms.
The Department also confirmed plans to upgrade biosecurity systems and fast-track land tenure reform, two long-standing concerns raised by both commercial and small-scale farmers.
As the debate continues, the challenge for South Africa will be to avoid forcing a trade-off between fairness and growth. The country’s future may depend on how well it can bring both goals into one working plan.
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