These farmers need an income of R15, 874 million a month to keep their farming operations running and, for instance, buy diesel, pay wages and pay electricity bills. Altogether 66% of the farmers currently need financing for 2016. According to the statistics, more than 11,500 people (2,773 families) are dependent on these 600 farmers for an income.
These farmers will have to spend an additional amount of R2, 984 billion on feed until their grazing has recovered and a new season starts. These funds will thus not be spent on goods and services in rural economies. Losses on input costs that farmers have already spent for crop fields are at R443 million. The drought thus results in a loss of R3,427 billion for the Free State's rural economy.
Only nine of the respondents received help from the government while 34 were assisted by other organisations. Up until now FSA's structures have facilitated assistance for more than 250 farmers/farming operations. A total of 1,630 bales of feed, 38 tons of protein feed and 2,877 bags of pellets were distributed to 17 of the most affected agricultural associations, delivered over a total of 19,899km.
FSA receives a lot of positive feedback with regards to cooperation between communities to assist one another. One example is excellent cooperation between the entire community of Seneka, the Setsoto local municipality and the Thabo Mafutsanyane district municipality with regards to the water crisis in town. Farmers from the community say good cooperation exists between all role players, with everyone doing their best to try and manage the crisis to the best of their ability. About 15 farmers deliver some 350,000 litres of water to the town's people daily.
In the meantime, FSA is working on a local, provincial and national level to facilitate all possible help to farmers. "We want to thank members of the public from the bottom of our hearts for their cooperation to try and assist those in need. The solution for farmers now lies with financing. Financing for farmers at low interest rates to carry them through this time and ensure that South Africa does not end up with food shortages that could lead to riots," says Henk Vermeulen, CEO of FSA.
According to the Department of Water Affairs' December 2015 operational analyses report on the Orange River System, more water restrictions have been proposed for the Free State. It is indicated in the report that more than 303 million m³ of water have been lost out of the Gariep and Vanderkloof dams due to Eskom's crisis hydropower generation until the end of December 2015. The report suggests that these crisis releases of water for Eskom's purposes must be prohibited to ensure future water supply.
Water restrictions of 20%, which were already suggested in June 2015 for the greater Bloemfontein water system, must be published in the Government Gazette and implemented as soon as possible according to the report. These restrictions will impact towns along the Welbedacht pipeline (like Wepener, Dewetsdorp, Reddersburg and Edenburg) as well as towns along the Caledon River.
Vermeulen says although FSA understands the challenges government experience with parastatals such as Eskom, the correct prioritisation of water is very important, "because water shortages will lead to food shortages, and that will affect everyone every day."
An excerpt of the report is available on Free State Agriculture, under press releases.
