Question NW569 to the Minister of Agriculture, Land Reform and Rural Development

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22 April 2022 - NW569

Profile picture: Montwedi, Mr Mk

Montwedi, Mr Mk to ask the Minister of Agriculture, Land Reform and Rural Development

(a) What are the reasons that no rental fee is collected on some farms leased by her department and (b) how has the failure to collect rentals affected her department financially?

Reply:

a) Despite the efforts of the Department of Agriculture, Land Reform and Rural Development (DALRRD) to collect rent in terms of lease contracts concluded in line with the State Land Lease and Disposal Policy; including providing discounts and farmer support programmes, the rental collection still remains very low. DALRRD is currently reviewing its policies and processes to ensure that a credible lease management system is in place. The reasons that no rental fee is collected on some farms leased by DALRRD include the following:

  • Some farms are not productive and unable to generate the necessary revenue to meet farm operational costs and lease rental;
  • Poor infrastructure to support agricultural activities;
  • Deliberate refusal by farmers to pay lease rental including those that received the necessary development support;
  • Some of the farms are abandoned or vandalized by the lessees and neighbouring communities; and
  • Sub-letting of properties by farmers and they don’t pay lease rental.

b) The failure by DALRRD to collect rentals resulted in an increase in the historical debt and the portfolio not generating the desired revenue.

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