THE Commercial Farmers’ Union (CFU) says the failure by the government to bring closure to the land question is blighting efforts by farmers to access critical funding.
Business Reporter
In 2000, the government embarked on a fast-track land reform programme meant to redress the land imbalances, which resulted in sharp decline in agricultural output, forcing the country to rely on imports.
CFU president Charles Taffs last week said the organisation was committed to serving the interests of the country in promoting inclusive and sustainable social and economic development.
The nationalisation and acquisition of some 11,8 million hectares of commercial farm land previously held under free hold title according to Taffs had seen the end to secure property rights and of investor confidence not only in agriculture, but across all sectors.
“Further, government’s inability and failure to pay compensation and bring closure to the acquisition process has crippled the institutional capacity to lend into this sector,” he said.
“National collateral has effectively been undermined and all agricultural land in Zimbabwe is now an impaired economic asset.
“Farmers have weak security of tenure and weak land rights.
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“Lending to the agricultural sector has become excessively constrained and is heavily risk loaded resulting in massive limitations to production.
“The sector is both uncompetitive and non-performing as a result.”
Taffs said local and foreign investors had either lost or were currently insecure in their investment adding that land reform beneficiaries remained inadequately empowered to leverage the potential of the land they were given.
He said it was critical for government in partnership with farmers to ensure the availability of raw materials for industry and to facilitate exports.
The CFU president said a solution that was fair, all inclusive, focused and implementable in the short-term must be found and must re-establish an active land market on the back of which a strong financial industry could be established.
Agriculture sector in turmoil
“With the continued uncertainty of the land 13 years on we are left with an agriculture sector in turmoil,” he added.
“The rural infrastructure is collapsing, thousands of kilometres of fencing have been removed, conservation land laws are being openly disregarded with dire environmental consequences, earthen dam walls are becoming unstable due to little or no maintenance over the period all leading to the well publicised serious agricultural deficits as well as mass migration from rural land to the towns and cities, putting those very towns and cities under increasing infrastructural pressure.”
