SA agricultural support is below the average
According to a new report by the Organisation for Economic Cooperation and Development (OECD), South Africa is one of the countries where support to agriculture is well below the average. In spite of an ever-increasing food-demand, food prices, market-volatility and resource pressures, the average government agricultural support in OECD member-countries fell in 2010 to 18% of total farm receipts - mostly due to high commodity prices.
Support levels vary enormously among OECD countries, between 2008 and 2010, for example, New Zealand support to farm receipts was only 1% of farm income, while the United States (9%), Israel and Mexico (12%), and Canada (16%) were also below the OECD average. At the other end of the scale, support to farmers remains relatively high in Korea (47%), Iceland (48%), Japan (49%), Switzerland (56%) and Norway (60%).
Farm support in emerging countries is generally well below OECD levels. In South Africa, the report finds, the level of price distortions has been low and in current years domestic prices were almost aligned to world price levels. Most of the budgetary payments, says the report, are related to the implementation of land reform and assistance to emerging farmers - "[t]he black population in rural areas is the target of land redistribution, but adequate supporting infrastructure and human capital formation must also be in place if these new entrepreneurs are to survive."
Read the full article on www.leadershiponline.co.za.
