The International Monetary Fund (IMF) approves of South Africa’s controversial land reform as long as the highly contentious process is “rules-based” and transparent, according to the fund’s representative in the country.
Montfort Mlachila, the IMF’s senior resident representative in South Africa, said that the regulation must not damage agricultural output and put at risk food supplies for the country’s citizens.
“We are in full support of the need to undertake land reforms in order to address the issues of inequality,” Mlachila said while preaching the global-communist line in an interview with Reuters.
“There is need to have a transparent, rules-based, and constitutional process that leads to desirable outcomes. It is particularly important not to undermine agricultural production and food security.”
The widely debated land reform was proposed by the country’s ruling African National Congress (ANC) in 2015, and received full support of the newly elected President Cyril Ramaphosa. The proposed measure will allow the South African government to expropriate land belonging to the country’s white farmers without compensation.
A major part of South African farmlands is still owned by the country’s white minority. The current president vowed to change the South African constitution to grant some of the land to the landless black majority.
The draft reform, which reportedly provoked violent attacks and even murders of white farmers, triggered a great uproar internationally. Last week, US President Donald Trump ordered Secretary of State Mike Pompeo to closely study the issue. Earlier this year, the Australian government started issuing emergency visas for farmers facing violence in South Africa.
Last week, the ANC announced the withdrawal of the disputed draft by the Portfolio Committee on Public Works for further study. According to the committee’s chairperson, Humphrey Mmemezi, the bill was referred to parliament on procedural grounds, but they couldn’t duplicate a separate parliamentary process. Afterwards, the ANC announced their commitment to push the land reform through.
A white South African farmer, Spurgeon Flemington, recently took to Facebook to describe what will be the net result of South African Communists steal his family farm.
I have no doubt that the ANC Govt has given a lot of thought to the topic of Expropriation Without Compensation (EWC) however I think they might not have fully comprehended the consequences of such a policy.
As a farmer I thought it might be useful to enlighten them as to the course of action I would take once my farm is targeted for EWC.
Before I continue I would like to emphasize that this is not a threat nor delivered with the mindset of a saboteur, it is merely a description of the sequence of events that would unfold in the event of such a policy being enforced.
I would immediately identify all the moveable assets on my farm and start selling them or placing them in a suitable storage facility. I list these below simply to demonstrate to non-farmers what makes a farm functional and profitable.
The first to go would be all the livestock followed by all the machinery including tractors, pumps, silos, centre pivots, electrical transformers, irrigation equipment, water troughs, implements and piping.
I would strip the dairy and sell the bulk tanks, milking machines etc. I would take down all internal fencing on the farm and recoup what I could. All sheds would be disassembled and all houses and other buildings would be stripped of anything sellable, including their roofs.
I would disconnect/cancel the 5 Eskom points on the farm and obtain refunds on the deposits I’ve paid on them.
I would re-trench all my staff and pay them off in accordance with the Labour Act. I would then strip all the staff accommodation on the farm and sell what I could.
With the sale of all my livestock and cessation of the farming operation I would immediately default on the R5.5m I owe FNB but I wouldn’t worry as the farm is the loan’s security and I don’t really own anything else.
When the day came to leave the farm I would hand the ‘keys’ over to the new ‘owners’ but I’m not quite sure what they would do as there’d be no roof on the farm house and there would be nothing to ‘farm’ on the farm. It would just be a piece of land, but that’s ok because the ANC says owning land makes you wealthy.
When you take the sequence of events described above and multiply it on a national scale you see another sequence of events unfolding.
The new ‘farmers’ arrive on the farm but there is no livestock, machinery or working capital to continue the operation.
They go to the banks to borrow money (A good farming habit) but the banks are sitting on a R160 Billion defaulted debt book from the ‘old’ farmers and won’t lend a cent to agriculture. They’re fighting for their own survival now.
The Govt doesn’t have the money, which would be far more than the R160 Billion mentioned above, to re-capitalise and finance all the farms so most of the farms either fall derelict or are farmed at a subsistence level.
There is a massive but short-term surplus of Beef, Sheep and Poultry products due to the sell-off by the previous farmers.
This brings prices down drastically in the short term but eventually the meat runs out and there is nothing to replace it.
Meat prices skyrocket.
Dairy products cease almost immediately after the livestock cull/sell-off and within weeks there is a critical shortage of all dairy products. Importing is impossible due to the Govt’s actions which have decimated the value of the Rand.
Maize lasts quite a bit longer and with careful rationing will endure until the next season but there is no crop in the ground for next year due to the new ‘farmers’ lack of machinery, experience and access to credit.
All agricultural Co-Ops and suppliers very quickly cease operation and/or go bankrupt and re-trench all their staff. They cannot survive by selling single bags of seed and fertilizer to subsistence farmers.
All processors of agricultural products such as meat, dairy and maize cease operation due to lack of product and re-trench all their staff.
Rural Municipalities start to feel the pinch as there are no longer any farmers paying rates and the agricultural businesses in the towns have also sold up and left.
Smaller rural towns that depended on agriculture eventually collapse and rural communities are forced to travel long distances to major centres to find ever dwindling supplies.
Ironically the EWC movement creates more Urbanisation as the rural folk flee the agricultural desert that has been created.
All food dependent enterprises such as fast food chains and restaurants either disappear or are greatly reduced…along with all their staff.
With all the unemployed farmworkers, as well as those who have lost their jobs from other sectors, there is an unsustainable demand on the UIF system and it soon collapses.
The Social Grant system teeters as the ripple effect from the agricultural collapse enters all sectors and the tax-base is shredded.
Food riots become common and genuine hunger and poverty widespread.
Unlike Zimbabwe the South African population has nowhere to run.
With the White Farmer no longer an available target and the true ‘value’ of land revealed in all its fallacy the masses turn on the only target they have left. The ANC.
James E Windsor, Overpasses News Desk
August 31st, 2018