It is not my usual practice to revisit the subject of a previous column. But in this instance I am compelled to do so because of the fast-changing global agricultural outlook and its implications for prices.
The Land Bank, which is in the throes of a liquidity crisis, slashed lending by about two-thirds in the five months to the end of September, starving farmers of capital ahead of the production season for the food staple maize.
Agriculture, land reform & rural development minister Thoko Didiza’s announcement that 700,000ha of agricultural land will be released for distribution is a positive step for agricultural expansion and inclusive growth.
The sentiment about the 2020/21 global grains and oilseeds production prospects is changing from a once optimistic one to potential downward revisions of the harvest.
About a third of the 700,000ha the government said earlier in October it would make available for land reform is already occupied by communities and black farmers, some of whom now fear they will be forced to vacate the land.
IT’S rather ironic that I started my career in financial journalism more than 35 years ago at The Star newspaper writing and warning about retirement annuities, that were all the rage at the time.
