Uncertainty about land reform is hugely worrying for indebted farmers who need financing
Land expropriation without compensation comes at the worst possible time for drought-stricken farmers already battling to access bank financing‚ Western Cape MEC for economic opportunities Alan Winde said on Thursday.Farmers were already swimming in debt and now had to convince banks to finance new investment in a climate of uncertainty around land reform‚ he said. Parliament’s resolution this week to back land expropriation without compensation lacked clarity, he said. "It adds to the risk in the financing space. It concerns me immensely‚" said Winde at a briefing on the drought. "There will be big discussions going forward around the risk in financing [agriculture] investment."Winde said organised agriculture was already deep in discussion with banks regarding financial problems and possible "soft loans" to address the drought.Figures presented at the briefing showed an average 20% decline in agricultural production in the Western Cape due to the drought‚ amounting to a gross valu...
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