Question NW2163 to the Minister of Agriculture, Land Reform and Rural Development

Reply:

1. There are no plans to establish a task force to address food shortages. According to the Crop Estimates Committee (as per publications reflected on https://www.dalrrd.gov.za / crop estimates), South Africa is not experiencing any food shortages. South Africa is able to meet food demand both through imports and local production.

Furthermore, the government has established a multi-sectoral and multi-stakeholder institutional structure called the National Food and Nutrition Security Plan comprising of the core social cluster and economic cluster departments such as National Treasury and Small Business Development departments. The structure addresses food and the food system inclusive of the food value chain across the continuum from severly inadequate to self sufficiency. At its core the National Food and Nutrition Security Plan address the pillars on which the policy is based namely access, availability, utilisation and stability.

(2),(3),(4) Falls away.

5. The Department established a Sector Energy Crisis Task Team comprised of government, industry, research institutions and sector entities. The work of the Task Team, engaging with Eskom looked at immediate, short- and long-term contingency plans to protect the sector against the negative impact of load shedding. The interventions will cover the sector at large including all categories of farmers. The interventions are also being aligned to the pronouncements delivered by the Minister of Finance during his budget speech.

The proposed interventions are:

• Customers with dedicated supply infrastructure should apply for load curtailment.
• Customers supplied by the same feeder/ substation can group together and apply for load curtailment.
• Review the schedule (duration and or time) where possible, to accommodate the needs of the majority of customers (the criteria will be based on impact/number of commercial customers).
• Customers in municipal supply areas where switching is done by Eskom and where possible, to exempt/curtail, municipalities to be allowed to do own switching to accommodate customers.
• Reconfigure the network to allow possible isolation where possible.
• Install micro grids, PV’s and battery containers for critical loads especially during critical times such as harvesting, irrigation and refrigeration; this will require customers to identify the essential load.

• As announced during the DALRRD Budget Vote Speech, the Department is establishing the Agro-Energy Fund at the Land Bank. This is a blended finance instrument where the state will provide a grant on a sliding scale per producer category combined with a loan from the Land Bank. The focus of the Agro-Energy Fund is on energy intensive agricultural activities. These include irrigation, intensive agricultural production systems, and on-farm cold chain related activities. The blended thresholds and caps per category of producer are:

• a large-scale producer will receive 30% grant funding to be matched with a 70% loan portion, where the grant amount is capped at a maximum of R1.5 million;
• a medium-scale producer will receive a 50% grant to be matched with a 50% loan portion, where the grant is capped at a maximum of R1 million; and
• a smallholder producer will be supported by a grant portion of 70% to be matched with a 30% loan. For this category, the maximum grant funding is capped at the maximum of R500 000.

Table 1: Grant Limits

Farmer Categorization	Large Scale Farmer	Medium Scale Farmer	Small Scale Farmer
Turnover	>R10m <R50m	>R1m-R10m	>R50k -R1m
% Grant of the Cost (valid Quotation)	30%	50%	70%
Land Bank Loan Component	70%	50%	30%
Grant Caps	R1.5m	R1m	R500 000

• Grant caps will be according to Table 1 above; however, the cost of the infrastructure needed by the farmer will be informed by the farmer’s farm energy requirements assessment based on the kilowatts. The pre-assessment by a competent expert registered with the South African Photovoltaic Industry Association (SAPVIA) will be key so that the correct fit for purpose system is installed.

• The Blended Agro-Energy facility will be used by qualifying producers for the purchase of Capital Equipment and Infrastructure (CAPEX) for alternative energy sources directly linked to energy-intensive farming operations.

Table 2: Common high energy consuming activities at farm level

Dairy Farming	Piggery	Poultry	Field Cropping	Horticulture including (Greenhouse)
Milk cooling machinery	Heating	Lighting	Cold Storage	Cold Storage
Lighting	Ventilation	Feeding machinery	Tilling	Irrigation
Milking machinery	Lighting	Ventilation	Irrigation	Ventilation
Feeding machinery	Feeding machinery	Heating		Lighting

NB: the list is not exhaustive