comprehensive agricultural support programme...

COMPREHENSIVE AGRICULTURAL SUPPORT PROGRAMME

(CASP), AND

ILIMA/LETSEMA CONDITIONAL GRANTS

(FOCUS ON 2019/20 BUSINESS PLAN)

DEPARTMENT OF AGRICULTURE, FORESTRY AND FISHERIES

PRESENTATION TO THE PORTFOLIO COMMITTEE ON AGRICULTURE,

LAND REFORM AND RURAL DEVELOPMENT

3 SEPTEMBER 2019

Presentation Outline

• Acronyms

• Why CASP?

o CASP objectives

o CASP pillars and targeted beneficiaries

• How CASP fits into the National Development Plan : vision 2030

• Policy imperatives informing investments

• Allocations since inception

• CASP conditional grant framework and 2019/20 Business plan

• Ilima/Letsema conditional grant framework and Business plan

• MTEF Allocations and 2019/20 Allocations

• Disbursement Schedule

• To What extent are set objectives achieved?

• Challenges

• Way Forward

2

Acronyms

• ACB - Agriculture Credit Board

• ARC – Agriculture Research Council

• APP – Annual Performance Plan

• APS - Agricultural Products Standards

• CASP – Comprehensive Agricultural Support Program

• DAFF – Department of Agriculture, Forestry and Fisheries

• DPME - Department of Planning, Monitoring and Evaluation

• EC – Eastern Cape

• GDP - Gross Domestic Product

• FMD - Foot and Mouth Disease

• FS – Free State

• HSRC - Human Sciences Research Council

• ICT - Information and Communication Technologies

• KZN – KwaZulu-Natal

• LB – Land Bank

• LP – Limpopo

3

Acronyms

• MAFISA – Micro Agricultural Financial Institutions of South Africa

• MP - Mpumalanga

• MTEF – Medium Term Expenditure Framework

• NAP – National Assessment Panel

• NC – Northern Cape

• NDP - National Development Plan

• NW – North West

• PDA – Provincial Departments of Agriculture

• PPECB - Perishable Products Export Control Board

• RAAVC - Revitalization of Agriculture and Agro-processing Value Chains

• SAGAP -South African Good Agricultural Practices

• WC – Western Cape

4

Why CASP?

• The Comprehensive Agricultural Support Programme (CASP) was introduced in

2004/5 financial year to respond to the gap that resulted following the closure of

the Agriculture Credit Board (ACB) in 1998, and the broader impacts as related to

the support farmers received from government;

• The closure of the ACB and reduced support to the ARC led to a situation whereby

direct and indirect support to emerging or small holder farmers would shrink and

without other instruments and or institutions it became nearly impossible for the

new beneficiaries of Land reform to access credit and or other means of support

from commercial banks and the Land bank.

• The failure to replace the ACB with a similar type of institution with a specific

mandate to assist the African smallholder farmers meant that the vast investments

made to provide them with land was not fruitful since they were not in a position to

cultivate and bring into production their newly inherited land and assets.

• Also the changes to the marketing environment which had been dominated by

marketing boards and a single channel marketing system meant that the

agricultural cooperatives who were farmer based entities consolidated and

changed from agents of the state to privately held companies.

5

Why CASP?

• Commercial farmers had received and benefited from the infrastructure such as

storage, marketing, input supply and extension services provided by the

cooperatives which had been funded from state coffers. These were now no more

available to service the new emerging black farmers and beneficiaries of Land

Reform;

• Considering the historical context – whereby the African farmer of whatever shape

or form had been denied access to resources and support the growing gap

between them and existing commercial farmers instead of narrowing actually grew.

• The cooperatives were far from the lands and areas where smallholder farmers

were based and by converting from farmer cooperatives into companies – the

African farmers were denied access to their services and support.

• The Strauss Commission that had spearheaded the revisions and changes to the

Landbank and the broader financial landscape had made recommendations which

had not been implemented to the full. Hence, following a review of the

recommendations of the Strauss Commission it was clear that the financial

“sunrise” subsidies and the adoption of a “sunrise” package to support the

beneficiaries of the land reform programme requiring finance would require a new

institutional arrangement and framework leading to the implementation of CASP.

6

CASP - Objectives

CASP sets out to deliver a wide range of economic, social and environmental

benefits.

On the economic front :

It is expected to produce higher levels of productive efficiency, create on-farm and

off-farm jobs, increase income and wealth in the rural economy;

As the positive impacts of CASP on the agricultural sector gain momentum,

significant amounts of domestic and foreign investment will be attracted to

complement the initial capital injections through the programme;

Leading to reversal of the inequities in farmland access and use rights inherited

from the apartheid era.

7

In terms of Social Benefits:

Its contributions to household and national food security

should significantly add to poverty reduction and improve

rural living standards; reduce crime, violence and socio-

political instability resulting from conflict over limited

agricultural resources.

In terms of Environmental Benefits:

Pertaining to environment security, CASP supposedly

promotes ecologically sustainable farming activities.

8

CASP – Objectives (2)

CASP – pillars and targeted beneficiaries

• The programme is delivered through six priority pillars which are:

1. On and off farm infrastructure support;

2. Knowledge and information management;

3. Technical and advisory services;

4. Training and capacity building;

5. Market and business development support; and

6. Financial services (branded MAFISA).

• Target Population

o The Hungry

o Previously disadvantaged subsistence, smallholder and commercial farmers

o Entrepreneurs

o Youth, women and people with disabilities

9

How CASP fits into the NDP: Vision 2030

Chapter 6: Advocates for an integrated and inclusive rural economy

• Grow the economy and increase jobs by expanding irrigated agriculture,

focusing on: Water use efficiency and New irrigation schemes;

• Pick and support those industries and regions with the highest growth and job

potential;

• Focus on value chains and agro – processing (create jobs and grow the rural

economy)

• Focus on Land Reform

o Develop strategies that give new entrants access to value chains

o Find creative combinations between opportunities, e.g.

− Support successful communal farmers – security of tenure

− Collaboration between commercial and land reform beneficiaries

10

Policy imperatives informing investments

1. Potential to Create 1 million jobs by 2030 (National Development Plan)

2. Expand commercial agriculture to achieve 250 000 direct jobs and 130 000 indirect jobs by 2030 (support 450 black commercial farmers)

3. Put 1 million hectares of unutilised land under production by 2019 (Fetsa Tlala)

4. Support 300 000 smallholder producers by 2019 (New Growth Path)

5. Expand 1.5 million hectares under irrigation by 500 000 (NDP: 2030 Vision)

6. Ensure food security for all (Act 108 of 1996, Constitutional Mandate)

7. Ensure sustainable use of natural resources

8. Grow agricultural contribution to the GDP - driven by the Revitalization of Agriculture

and Agro-processing Value Chains (RAAVC – 9 point plan) – through

operationalization of the Agriculture Policy Action Plan.

11

Allocations since inception

12

The impact study on CASP for a period

2007/08 – 2011/12 was conducted by DAFF

and DPME in 2014/15.

Year

CASP

AllocationExpenditure

% SpendingNumber of

projectsBeneficiaries

R‘000 R‘000

2004/2005 200 123 62 510 46 500

2005/2006 250 157 63 1 070 53 200

2006/2007 300 252 84 870 67 400

2007/2008 415 333 80 786 60 300

2008/2009 535 402 75 703 31 039

2009/2010 715 693 97 888 26 266

2010/2011 862 854 99 1 271 27 972

2011/2012 1 029 984 94 814 36 504

2012/2013 1 534 1 260 81 536 59 286

2013/2014 1 600 1 600 100 753 65 075

2014/2015 1 861 1 394 98 804 113 257

2015/2016 1 651 1 630 99.7 1 547 42 869

2016/2017 1 641 1 572 95.4 400 25 958

2017/2018 1 645 1 446 88 468 22 906

2018/2019 1 750 810 1 892 561 90.9

TOTAL 14 238 12 700 86.8 11 420 678 532

Year

Ilima/Let

sema

Allocatio

n

Received

by

Province

Total

Available

Expenditure

Beneficiaries

R'000 R'000 R'000 R'000 %

2008/09 171 000 171 000 171 000 147 000 86 411

2009/10 50 000 50 000 50 000 67 000 134 12 967

2010/11 200 000 192 000 192 000 191 000 99.5 75 207

2011/12 400 000 400 000 400 000 396 000 99 109 197

2012/13 415 000 415 000 415 000 400 000 96.4 162 985

2013/14 438 000 438 000 454 000 424 000 93.4 147 990

2014/15 460 000 460 000 487 521 484 084 99.3 191 396

2015/16 470 768 466 713 466 713 464 269 99.5 173 019

2016/17 491 363 491 363 491 363 481 435 98 170 776

2017/18 522 139 522 139 522 139 487 543 93.3 186 243

2018/19552 423 552 423 552 423 524 939 91.1

TOTAL 4 170 693 4 158 638 4 202 159 4 067 270 96.8

CASP Conditional Grant Framework

Grant Goal

To create a favourable and supportive agricultural services environment for the

farming community, in particular subsistence, smallholder and black commercial

farmers within strategically identified grain, livestock and horticulture production areas.

13

Grant Purpose

o To provide effective agricultural support services, promote and facilitate agricultural

development by targeting beneficiaries of land reform, restitution and redistribution, and

other black producers who have acquired land through private means and are engaged

in value-adding enterprises domestically, or involved in export.

o To address damage to infrastructure caused by floods.o To revitalize agricultural colleges into centers of excellence.

CASP Conditional Grant Framework (2)

Outcome statements

o Broadened access to agricultural support for black subsistence, smallholder

and commercial farmers;

o Increased number of sustainable and profitable black producers in

horticulture, grains, livestock, and aquaculture value chains;

o Improved farming efficiency;

o Improved systems required for the maintenance of a Foot and Mouth Disease

(FMD) free status as prescribed by the World Organisation for Animal Health;

o Increased wealth creation, and sustainable employment in rural areas;

o Increased access to markets by beneficiaries of CASP;

o Improved household and national food security;

o Reliable and accurate agricultural information available for management

decision making.

14

CASP 2019/20 Business Plan

Grant Outcome Broadened access to agricultural support for black

subsistence, smallholder and commercial farmers

Outcome Indicator Number of subsistence farmers

supported with production inputs and

mechanisation

1 433

Number of smallholder farmers


mechanisation

6 111

Number of black commercial farmers

supported with production inputs154

Number of projects supported 437

15


Grant Outcome Improved farming efficiency

Outcome Indicator Number of farmers trained 26 806

Number of farmers mentored 642

Number of Extension Officers

recruited144

Number of extension personnel

provided with resources (e.g ICT

infrastructure)

3 268

Number of colleges revitalised 10

16


Grant

Outcome

Maximize Job Opportunity

Outcome

Indicator

Number of jobs created

Province EC FS GP KZN LP MP NC NW WC

Jobs 1 343 210 92 1 924 986 404 390 648 1 159

Total jobs 7 156

17

SAGAP Certification programme

• DAFF in partnership with PPECB and Provinces are implementing the

South African Good Agricultural Practices (SAGAP) certification

programme for smallholder producers of fresh produce since January

2014.

• In the initial stages of implementation DAFF (Marketing and

Smallholder Directorates) with PPECB carried the costs for the

programme; and CASP only addressed non-conformances relating to

infrastructure.

• In 2018/19 provinces were requested to enter into agreements with

PPECB and carry all the costs of the programme through CASP,

addressing both soft and hard non-compliances (i.e. pre-audits,

training/workshops and infrastructure development); as outlined in

Regulation 707 of 2005 under the Agricultural Products Standards

(APS) Act of 1990.

18

SAGAP Certification - Progress made to date

Province Number Participating

Pre-Audits Final AuditsCertified (Primary Production)

Certified (On farm Packhouse)

Total Certified

Number Maintaining Certification Status

Number Failed re-certification

2019/20 Allocation

Eastern Cape 17 17 0 0 0 0 0 0 1 104

Free State 14 14 0 0 0 0 0 0 300

Gauteng 27 26 7 5 4 9 1 0 1 460

KwaZulu Natal 12 12 1 1 1 2 1 0 3 000

Limpopo 27 27 3 2 1 3 1 0 13 789

Mpumalanga 26 23 11 10 1 11 8 0 1 500

Northern Cape 119 62 65 54 0 54 54 0 250

North West 15 15 1 1 0 1 0 1 3 000

Western Cape 18 14 5 5 1 6 1 0 800

Total 275 210 93 78 8 86 66 1 25 203

% 44% 37% 4% 41% 31% 0%

19

Placement of unemployed graduates in commercial farms

Province

2019/20

No. GraduatesStipend (Year 1)

per graduateTotal Budget

Eastern Cape 120 91 350 10 962 000

Free State 120 91 350 10 962 000

Gauteng 80 87 500 6 960 000

KwaZulu natal 120 91 350 10 440 000

Limpopo 120 91 350 10 962 000

Mpumalanga 120 91 350 10 440 000

Northern Cape 80 87 500 7 000 000

North West 120 91 350 10 962 000

Western Cape 120 91 350 10 962 000

Total 1 000 89 650 000

20


Grant Outcome Improved systems required for the maintenance

of a Foot and Mouth Disease (FMD) free status in

Limpopo, KwaZulu Natal and Mpumalang as

prescribed by the World Organisation for Animal

Health

KZN 600 Vaccinations done in KZN

2 000 (25km fencing)

LP 37 000 Vaccinations done in LP

6 050 (20 Cattle grids, 20 farm gates and 130km

fencing erected).

MP Vaccinations through equitable share.

Total Budget R8 650 000

21

KyD (Kaonafatso ya Diphoofolo)

ProvinceBudget

(R'000)Graduates

Number of

farmers

Number of

Auction

Events

Number of

Farmers Day

EC 3 661 4 800 6 8

FS 3 661 4 800 2 5

GP 3 661 4 800 2 5

KZN 5 593 6 4 000 12 10

LP 4 040 4 2 400 6 8

MP 3 661 4 1 800 6 8

NC 3 661 4 800 2 5

NW 3 661 4 1 800 6 8

WC 2 041 4 500 0 4

Total 33 640 38 13 700 42 61

22

Ilima/Letsema Conditional Grant Framework

Grant GoalTo reduce poverty through increased food production initiatives

23

Grant PurposeTo assist vulnerable South African farming communities to achieve an increase in agricultural

production and invest in infrastructure that unlocks production within strategically identified grain,

livestock, horticulture and aquaculture production areas.

Outcome statements

o Increased production of grains, livestock, horticulture and aquaculture at both household

and national level;

o Improved household and national food security;

o Improved farm income;

o Maximised job opportunities;

o Reduced poverty;

o Rehabilitated and expanded irrigation schemes.

Ilima/Letsema 2019/20 Business Plan

Grant Outcome Increased agricultural production of grains, livestock,

horticulture and aquaculture at both household and

national level

Outcome Indicator Hectares planned 92 802 ha

Yield per unit area (average 3 tons) 278 406 tons

24

EC FS GP KZN LP MP NC NW WC

Ha 35 809 9 511 2 000 5 300 14 339 11 262 1 469,00 12 912 200

0

5 000

10 000

15 000

20 000

25 000

30 000

35 000

40 000

Ha

Ha

Commodities Prioritized (95% grains in 2019/20)

25


Grant Outcome Improved households and national food security

Outcome Indicator Number of households supported

with inputs for vegetable gardens67 612

Number of school gardens supported 16

Number of community gardens

supported1 040

Number of subsistence farmers


mechanisation

31 978

Number of smallholder farmers


mechanisation

7 257

Number of black commercial farmers

supported with production inputs203

Vulnerability Assessment Surveys

Conducted in 9 provincesR45 768

26


Grant

Outcome

Maximize Job Opportunity

Outcome

Indicator

Number of jobs created

Province EC FS GP KZN LP MP NC NW WC

Jobs 1 801 13 333 63 2 600 4 609 146 610 119 99

Total jobs 23 380

27


Grant Outcome Rehabilitated and expanded irrigation schemes.

Outcome Indicator Number of Irrigation schemes

revitalised7

PROVINCE IRRIGATION SCHEME R’000

EC

Keiskammahoek 6 549

Eerde Koning (lower Keiskammahoek) 2 000

Qamata 8 299

KZN Makhathini 31 500

Pongola 2 976

NW Taung 7 101

NC Vaalharts 15 000

Total 73 425

28

Summary Business Plans for 2019/20 Financial Year

• Total allocation R1, 538 325 billion

• 1433 Subsistence farmers supported

• 6111 Smallholder farmers supported

• 13 700 Smallholder farmers participating in KYD

• 154 Commercial farmers supported

• 437 projects supported

• 26 806 Farmers trained, 642 farmers mentored

• 7 156 jobs targeted

• 10 Colleges of Agriculture revitalized (ongoing)

• Smallholder farmers SAGAP Certified and linked to

markets

• Farmers affected by flood disasters supported in

Limpopo, Mpumalanga and Western Cape

• R 368 million allocated for Extension Recovery

Plan (Training, Resources, Salaries)

• Revitalize Taung, Vaalhaarts, Makhathini, Pongola,

Keiskammahoek, Eerde Koning and Qamata

irrigation schemes

• Improve systems towards FMD free status in

Limpopo, Mpumalanga and KwaZulu Natal

• Total allocation R583 million

• 511 projects approved

• 67 612 Vulnerable households supported with

starter packs to produce own food (food gardens)

• Vulnerability Assessment Survey conducted in 9

provinces in partnership with HSRC

• 16 School gardens supported

• 1 040 Community gardens supported

• 31 978 Subsistence farmers supported (1ha)

• 7 257 Smallholder farmers supported

• 203 Commercial farmers supported

• 92 802 ha planted; average yield of 3ton/ha

• 23 380 Jobs created

29

CASP Targets ILIMA/LETSEMA Targets

MTEF Allocations

30

Total MTEF transfer to PDA’s = R6, 879 821 Billion

Total MTEF transfer to LB = R1, 037 300 Billion

Total 2019//20 – 2021/22 MTEF allocation = R7, 917 121 Billion

Conditional Grants 2019/20 2020/21 2021/22

CASP 1 538 325 1 675 989 1 813 718

Ilima/Letsema 583 359 615 444 652 986

Total conditional grant (NAP - PDA) 2 121 684 2 291 433 2 466 704

Blended Funding (LB) 271 469 295 763 320 068

Blended Funding (Smallholder) (LB) 150 000

Total transfer to LB 421 469 295 763 320 068

Total grants 2 543 153 2 587 196 2 786 772

CASP Allocation 2019/20

Province

Total

Allocations Projects ERP Colleges Disaster

R'000 R'000 R'000 R'000 R'000

Eastern Cape 244 101 143 338 84 362 16 401

Free State 168 373 130 192 29 299 8 882

Gauteng 91 306 74 891 16 415 0

KwaZulu-Natal 199 351 138 606 48 440 12 305

Limpopo 246 542 137 492 82 383 18 415 8 252

Mpumalanga 154 076 117 216 28 295 0 8 565

Northern Cape 119 458 90 511 28 947 0

North West 164 857 123 389 26 538 14 930

Western Cape 150 261 77 218 23 879 5 632 43 532

Total 1 538 325 1 032 853 368 558 76 565 60 349

31

Ilima/Letsema allocations

32

Province

2019/20

AllocationsSAVAC Projects

R'000 R'000 R'000

Eastern Cape 75 254 8 627 66 627

Free State 70 586 3 482 67 104

Gauteng 31 974 1 651 30 323

KwaZulu-Natal 75 253 3 451 71 802

Limpopo 75 254 6 151 69 103

Mpumalanga 61 504 5 251 56 253

Northern Cape 64 169 2 777 61 392

North West 70 586 4 577 66 009

Western Cape 58 779 9 301 49 478

Total 583 359 45 268 538 091

Approved Disbursement Schedule

CASP

Province

Q1 Q2 Q3 Q4

17-May-19 30-Aug-19 31-Oct-19 31-Jan-20

EC 21% 37% 29% 13%

FS 14% 40% 30% 16%

GP 6% 33% 31% 30%

KZN 10% 20% 40% 30%

LP 17% 31% 30% 22%

MP 10% 19% 51% 20%

NC 10% 25% 40% 25%

NW 15% 35% 40% 10%

WC 20% 40% 30% 10%

Total 14% 31% 36% 20%

PROVINCE

Q1 Q2 Q3 Q4

17-May-19 30-Aug-19 31-Oct-19 31-Jan-20

Eastern Cape 15% 35% 30% 20%

Free State 5% 40% 35% 20%

Gauteng 10% 40% 30% 20%

KwaZulu-Natal 10% 35% 35% 20%

Limpopo 20% 30% 30% 20%

Mpumalanga 15% 35% 30% 20%

Northern Cape 15% 35% 30% 20%

North West 10% 35% 35% 20%

Western Cape 20% 30% 30% 20%

Total 13% 35% 32% 20%

33

To what extent are the set goals achieved?

• Some Findings from the Impact Study conducted in 2014/15:

o The Comprehensive Agricultural Support Program (CASP) has significantly

contributed towards growth and the sustainability of individual smallholder

farming enterprises supported.

Incomes of Project / Farm managers increased after CASP,

Jobs increased and were sustained after CASP,

85% of CASP beneficiaries have access to markets

Average area cultivated increased after CASP.

o The proportion of youth supported was low, 14% of total beneficiaries were youth

o Access to agricultural information increased after CASP and more than 77%

of beneficiaries indicated medium to high satisfaction on information received.

o Farmers were generally satisfied with the quality of Extension Services

o CASP has made a significant contribution to on-farm infrastructure and

livestock in all nine provinces. 34

Weaknesses / Challenges

• Insufficient integration of CASP into the Department of Agriculture,

Forestry and Fisheries.

• Repeated audit findings regarding inadequate monitoring of funded

projects.

• Misalignment in reporting timelines – CASP and Ilima/Letsema is

governed by the Division of Revenue Act – and its reporting timelines

are not the same as the APP reporting timelines.

35

Way Forward

• A process to integrate CASP into the Department has already begun.

All Development Funds will be managed from the office of the Chief

Financial Office, Monitoring and Evaluation of CASP projects will be

done from the Branch : Policy, Planning and Monitoring and

Evaluation and all other Pillars of CASP will be located in the

relevant Units of the Department.

• We have re-assigned within the Department, 18 Assistant Directors to

monitor CASP projects in the Provinces.

• The 1000 unemployed graduates that are placed in the Commodity

Groups will also be used to monitor CASP on a quarterly basis.

• To this effect programmes shall be headed by the relevant Chief

Directors who will regularly interact with the Provinces about the

implementation measures, monitoring and evaluation of projects with

a strong focus in the planning of programmes.

36

Way Forward

• Develop an Integrated Producer Support Model to respond to the

preliminary recommendations from the CASP Impact study that stated:

• “The most effective and efficient way to support farmers in

South Africa is to overhaul and redesign all farmer support

programmes and do away with existing silos of farmer support.

This should entail the establishment of a single programme of farmer

support to replace the numerous programmes which currently exist.”

37

38

THANK YOU

comprehensive agricultural support programme...

Documents