Farm prices in SA have plunged by a third since the ANC decided to seek a change to the constitution to make it easier to expropriate land without compensation, and as commodity prices fell due to bumper harvests following a drought. The average price of agricultural land sold in July was R9,318 a hectare compared with R13,700 in December, when the ANC adopted the policy, Johann Bornman, an economist who is the chairman of Agri Development Solutions, said on Monday. Bornman uses data from the country’s Deeds Office, the agency that maintains the property registry. The average price of a hectare of agricultural land is 43% lower than it was in April 2016, when it was at a record, Bornman said. The total value of transactions has dropped 57% since December to R826m, the economist said. The ANC’s move has added to wider emerging-market jitters in knocking SA assets. Erosion of property rights Critics of the plan and investors say the move could lead to a devastating erosion of property...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.