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Land cap is grim reaper stalking SA’s farm sector

Author: Thekiso Anthony Lefifi

Agriculture still contributes about R84-billion (about 3%) to gross domestic product. If one adds in the entire food value chain, this figure soars to more than half a trillion rand, according to Roelof Botha, a joint managing director of consultancy Gopa Group.

Unlike banking , money spent in farming does much for the country, thanks to the multiplier effect of the relatively high number of people employed in the sector, says consulting group PwC.

The mood this week at the Standard Bank agriculture conference held in Johannesburg was sombre.

Dark clouds of gloom were evident everywhere, from the farmers and consultants to the bankers that lend to the sector.

It’s no surprise why. A few weeks ago, President Jacob Zuma said that the government would cap land ownership at 12000ha and that farmers would be forbidden from owning more than two farms.

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