Fanie Brink, Independent Agricultural Economist
“The reason why the ANC government's policy has now become a problem for Agri SA and Agbiz as ‘farmers' access to credit or financing will be much more difficult in the future’ and ‘the lack of financing for thousands of farmers could threaten food security’ if they fully support the destructive ideology of the government as members of Business Unity South Africa (BUSA), is incomprehensible," said Fanie Brink, an independent agricultural economist.
While Agri SA and Agbiz can see clearly before their own eyes how the economy collapses and the country further degenerates into a totally failed state with a corrupt and bankrupt government!
Brink referred to the article "“Landbank se besluit benadeel duisende boere” which appeared in the Rapport today.
"Why would the organised agriculture and agriculture businesses now be concerned about the 'Landbank's financial crisis' that would mean higher interest rates for farmers?"
READ MORE - South Africa-ECONOMIC GROWTH - THIRD QUARTER 2020 Fanie Brink, Independent Agricultural Economist
The "commercial banks must now help farmers under the government's loan guarantee scheme of R200 billion for businesses that got into trouble during Covid-19" of which no commercial farming business will see a cent. The loan guarantee scheme was also never intended only for agricultural enterprises, but for all business enterprises in the economy that deliver R2,96 trillion to economic growth.
"If the agricultural industry's average contribution to economic growth of 2,3% is used to allocate a portion of the R200 billion to the industry, it would not even be enough to finance a third of just the hectares of maize that producers intend to plant this current production season."
At the same time, the ANC government is continuing at full steam to expropriate commercial farmers' land without compensation, while plunging thousands of small subsistence farmers, who can only make a very small contribution to food security, into poverty that will become permanently dependent on the government for their financial survival.
"A purely political decision without any economic merit that can make no contribution to economic growth by the agricultural industry. Instead of establishing and supporting more black commercial farmers, but which will mean fewer votes in the local government election next year,” says Brink.
