Farmers line up to sell family lands

Barry haynes via Wikimedia Commons

Over the last year, the number of farms on sale has shot up by 45% and, according to the latest available figures, more than 800 Eastern Cape farms are on the market. Nationally, more than 20,000 farms are for sale.

Financial pressure

Agri Eastern Cape president Doug Stern said about 858 farms were for sale in the province "upwards of 200 (23.5%) more than at the same time last year" and this was very concerning. According to Stern, financial pressure on farmers is playing a major role, as persisting drought in certain regions has limited their income.

Cash flow is decreasing while loans and debt are bleeding farmers dry. There is also a growing tendency for younger generations to move away from family farms to focus on other business interests.

Other provinces paint an even bleaker picture than the Eastern Cape. In Gauteng and the Western Cape, 5,623 and 3,585 farms respectively are on the market, while the North West, with 2,864, and Limpopo, with 2,275, are also concerning.

Agriculture will survive

But Agri Development Solutions expert Johann Bornman said markets tended to fluctuate, and while things were not looking great right now, there was sure to be an upturn in the market soon. "Agriculture will survive. It always does," Bornman said.

While certain sectors in agriculture were struggling, others were thriving. "At the moment, wool and mohair farmers, the majority of whom are in the Eastern Cape, are doing really well," Bornman said. "Other areas should keep in mind that droughts come in cycles, and when this drought breaks, agriculture is set to enter a very prosperous period."

Both Bornman and Stern said political factors and uncertainty among farmers regarding land reform policies were also contributing to farms going onto the market, but this played a lesser role than economic factors.

Land prices

Estate agents focused on selling farms and smallholdings believe land prices are high at the moment. Eastern Cape Agri-Land agent Riaan van Tonder said: "At this stage, many farmers want to sell their farms, but they are not desperate enough to drop their prices to the point where they will sell easily."

Also, Van Tonder said, state departments had implemented stricter criteria for developing farmers applying for government help to acquire land, meaning that even the government had slowed its buying of available farms.

Source: Herald