Question NW2815 to the Minister of Agriculture, Land Reform and Rural Development
29 September 2023 - NW2815
Masipa, Mr NP to ask the Minister of Agriculture, Land Reform and Rural Development
(1)Noting that at a recent presidential imbizo in Paarl, the Deputy Minister of Agriculture, Land Reform and Rural DevelopmentError! Bookmark not defined., Mr Mcebisi Skwatsha, claimed that farmers in the Western Cape are artificially inflating the prices of their farms once they learn that their farms have been targeted for land reform (details furnished), what (a) are the full, relevant details regarding the claims made by the Deputy Minister that farmers in the Western Cape artificially inflate the prices of their farms, (b) is the list of farms of which the prices were inflated and (c) are the relevant details regarding (i) the locations of the farms in the Western Cape and (ii)(aa) their market value according to her department and (bb) the total amount by which each farm was inflated; (2) whether she and/or her department has taken any steps to address the situation with the farmers; if not, what are the reasons that no steps were taken; if so, what steps were and/or will be taken? NW3230E
Reply:
1. (a) The Department of Agriculture, Land Reform and Rural Development is not at liberty to disclose identifying information about owners who offered their assets to the Department. The Department can however illustrate through the list of farms below where the prices were inflated.
(b),(c)(i),(ii)(aa)-(bb) List of farms where the prices were inflated (names withheld).
|
Farm Name |
(c)(i) farm locations Western Cape |
Offer to Sell |
(c)(ii) (aa) their Market Value |
Final Offer |
Status |
(c)(bb) the total amount by which each farm was inflated |
|
Farm A |
Western Cape |
R30 000 000 |
R23 580 000 (land and improvements) |
R13 990 000 |
Final Offer Declined and after negotiations asking price of R27 million |
R3 420 000 (price inflation after final offer) |
|
Farm B |
Western Cape |
R18 604 651 |
R11 032 000 (land and improvements) |
R11 337 000 |
Final Offer Declined and after negotiations asking price of not less that R23 million |
R11 968 000 (price inflation after final offer) |
|
Farm C |
Western Cape |
R2 900 000 |
R3 126 000 (land and improvements) |
R2 282 660 |
Final Offer Declined and after negotiations, asking price of not less than R 3.2 million |
R17 340 (price inflation after final offer) |
|
Farm D |
Western Cape |
R65 000 000 |
R51 400 000 (land and improvements) |
R24 777 479 |
Offer accepted |
R0 (owner accepted reduced offer) |
|
Farm E |
Western Cape |
R10 607 300 |
R 7 016 620 (land and improvements) |
R6 300 000 |
Offer accepted |
R0 (owner accepted reduced offer) |
|
Farm F |
Western Cape |
R65 000 000 |
R67 975 000 (land and improvements) |
R66 452 500 [R50 877 500.00 (land + R15 575 000.00 (movables)] |
Final Offer Declined and after negotiations requested a new asking price which the department did not consider. |
Cannot be determined as the department withdrew from further negotiations. |
2. Yes. The Office of the Valuer General issues the conditional certificate to the property owner to which he/she makes representations within 30 days in terms of the Regulations under the Property Valuation Act No. 17 of 2014, considering the current use value of the property; historical value pertaining to acquisition benefits on the property; market value of the property; and lastly, the direct state investment and subsidies on the property. During this period the Office of the Valuer General in collaboration with the Department of Agriculture, Land Reform and Rural Development enters negotiations with the property owner to reach an agreement on offers made.