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Successful land
restitution farms
– a lesson for new entrants into commercial agriculture
T
he Bakwena ba Mohlabetse Commercial Properties Asso-
ciation, from Groblersdal in the Limpopo Province, is one
of many farming communities that have benefitted from
the South African government’s land restitution programme.
The group recently received 3 000 ha of land with an outstanding
6 000 ha still to be settled from their original claim of 9 000 ha. As
new entrants into the large-scale commercial farming sector, such
farmers generally face a number of challenges including: Lack of
farming skills and experience, limited access to operational fund-
ing, and limited or no infrastructure.
Another great challenge that has to be faced by these land claims
farms is the social dynamics of communal resource management.
Me Liana Stroebel, a grain producer development co-ordinator
(Grain SA), facilitated cross-over visits during March this year. As
part of the technical support provided to different farming com-
munities, the ARC-Smalholder Agricultural Development Division
and its partners endeavour to identify, investigate and upscale new
technologies and best practices in the agricultural sector.
Genadeshoop
The wheat fields on our way to Windheuwel farm were waiting
for winter rains, as the five representatives of the Bakwena ba
Mohlabetse Commercial Properties Association study group were
transported by the ARC’s team to visit the Genadeshoop farm, near
Piketberg in the Western Cape.
The purpose of the visit was to learn and get advice from the far-
mers and their mentor on lessons learnt as they walked this road of
turning an emerging farmer into a profitable commercial producer
that contributes to the food security of the country.
The commercial producer, Mr Stephanus Richter, gave 100 ha of
his most arable land and 100 sheep and asked the local community
who will be willing to use it, and those who showed interest,
including Mr Whernit Dirks, stepped up and made a success of it and
soon after registered the Genadeshoop CC.
Richter was again inspired to give them another 300 ha of his
most arable land and later even assisted them in renting their
neighbouring farm of another 300 ha. Richter and Genadeshoop
then registered a Trust that holds all the immovable and movable
assets and deals with all the contracting wages.
With good recordkeeping, disciplined budget adherence and a
viable business plan, the Genadeshoop group was able to qualify
for an insecure loan from Absa, under the mentorship of Richter.
It became apparent to the group that the profits of the arable land
was enough to pay for the rental of the neighbouring farm, the
lesson being: Soil conditions determine yield and in an industry
where the profit margins are very small, investing in conserving
good soil conditions does pay-off.
Genadeshoop farmers then applied for funding and received
R2,5 million over five years, half of which went into input costs and
OLIVIA MANONGA,
ARC-Smallholder Agricultural Development Division
1: Genadeshoop farm visit.
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Augustus 2015
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