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Mei 2015
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GRAIN SA
The farmers in the project are delighted with the results and want
to continue next season. A large number of other farmers who were
not involved in the initial project have also requested to be included
for next season.
Proposed expansion of the project
(primary production)
The Jobs Fund (a project of the National Treasury) is paying at-
tention to the agricultural sector. Their focus is on job creation, in-
come generation and poverty alleviation.
As Grain SA we have submitted an application to the Jobs Fund
for the expansion of this project. The following is proposed:
An individual farmer is part of the project for four years and
thereafter he/she should continue on his/her own.
The number of farmers increases by 850 per year to a maximum
of 3 400 farmers (in the last year 10 200 ha will be in production).
Each farmer starts with 1 ha and they may increase the area
by 0,5 ha to a maximum of 3 ha each (in this project it must how-
ever be remembered that some farmers will use this opportu-
nity to start real commercial farming on a large-scale as this has
been done by other similar farmers already).
The farmer contribution to the cost of the inputs will increase
each year – year 1 = 25%, 2 = 40%, 3 = 60%, 4 = 80% and from
year 5 onwards the farmer will carry the full cost of production.
The contribution by industry will diminish each year – year 1
= 30%, 2 = 20%, 3 = 10% and 4 = 5% – thereafter the farmers
will pay the full price for the correct inputs as used in the project
(they have seen the benefits of buying the correct inputs).
The mentoring to farmers will be reduced by 25% per year so
that the farmer gradually leans to do all activities on this own,
understanding the impact of his/her actions.
The Jobs Fund will bear the cost of the mentoring, as well as
the shortfall in the production input costs (this contribution de-
creases as the farmer’s contribution increases).
The Jobs Fund works on a basis of 1:1 funding – they will match
the funding from the other partners. In the application to the
Jobs Fund, we have estimated the value of the farmer’s cash
contribution plus the value of the discounts given by industry
as the “own contribution”.
The aspect of “life after the project” is an important one if this
project could be replicated in other areas. Past experience has
shown that the farmers must be assisted for a limited period of
time, and their contribution should increase each year until they are
funding the planting themselves – if this is not the case, the farmers
tend to participate while they get grants and when the grants stop,
the whole effort stops. We do not want this to happen.
Initially the farmers will only contribute 25% of the production costs,
and industry will contribute 30% (in the form of discount) – the bal-
ance for the inputs will be carried by the Jobs Fund. However, the
support will only continue (on the decreasing) basis for four years
– in year five, the farmer will carry all the costs.
Partnership to promote
commercial grain production
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