Question NW1184 to the Minister of Agriculture, Land Reform and Rural Development
11 May 2023 - NW1184
Matiase, Mr NS to ask the Minister of Agriculture, Land Reform and Rural Development
In light of the fact that the agricultural sector is both labour and technology intensive, what was the cost of (a) labour and (b) machinery and/or technology in the year 2022 and (c) how were the medium and small-scale farmers given relief from the specified cost factors in the specified period?
Reply:
(a)(b) The business analysis and approval of submissions made by prospective producers for assistance are against a standardised measure of guidance as given through computerised budget (commonly called ComBud). Based on economic data generated the enterprise budget per hectare of a commodity under analysis is determined/created to guide an approval process.
The general norm for these two production factors is that labour contributes approximately 15% cost to the total farming cost while machinery contributes approximately 9% cost to the total gross value of the operation. Thus, the Department provides support using such margins as apportioned per data attributed to a commodity per given geographical area.
It should be noted that labour classification includes both seasonal and permanent personnel while the kind of commodity being analysed for support might include a variety of machines (this includes combine harvester, fertilizer equipment, planting equipment, spaying equipment etc.) and all are measured and costed.
(c) DALRRD through producer support programmes like Comprehensive Agricultural Support Programme (CASP), Land Development Support (LDS), Ilima//Letsema, Blended Funding Scheme (BFS), and Farmer Production Support Units (FPSUs) assisted small and medium scale farmers with mechanisation and overhead related costs including labour for the specified period.