Chairperson, hon Minister and fellow comrades, it is a pity that Mr Van Rensburg has just left. I was going to remind him that, 15 years ago, his party, as the apartheid government, went to my place in Mogopa, bulldozed the churches, bulldozed the people's houses, bulldozed the schools and took away the land of the people at the point of a gun. Today he has the audacity to come and tell us what to do for Zimbabwe. [Interjections.] He was there.
The contribution of agriculture to the national economy is said to be around 6%. However, according to international research the contribution by agriculture could increase substantially if a sustainable small-scale emerging farming community is developed. Since small-scale farmers are an important component of our constituency and constitute a viable instrument for growth in the agricultural sector, in this debate I will raise serious concerns for their promotion and development.
In the previous financial year, R20 million was made available for production loans to previously disadvantaged farmers. How much is currently awarded for this farming sector? Could we have a breakdown according to provinces? Previously about R150 million was made available for emerging farmers by the financial intermediaries. These financial intermediaries administered production loans to beginners and small farmers at an interest rate of 14%. The national Department of Agriculture covered the operational costs, transaction costs and the provisioning fees. Since the repo rate has declined, what is the current rate of interest on loans awarded to small farmers? The loans to small farmers are granted in terms of the Agricultural Credit Act of 1996. Currently what kind of assistance is available to the small emerging farmers?
Production loans for emerging and small food producers have been separated from grants for project assistance. Grants for this special project have been paid into the National Revenue Account. In the past a preliminary maximum amount of R6 million per province was allocated for these projects. What is the current situation with regard to these special grants for the emerging farmers? Do we have the allocation as per province? More importantly, what kind of financial relief was awarded to the emerging and small farmers adversely affected by the recent floods?
The purchasing of land by emerging farmers is most troublesome under certain conditions. The Agricultural Credit Board finances the purchasing of the land. The purchasing of the land is absolutely central to the establishment of this subsector. The reason for the inability to provide loans is, among others, the inadequate capital of applicants and the high market value of agricultural land. The beginner and small farmer find it difficult to bridge the gap between market value and the loan value that the credit board is willing to grant. The present measure of the credit board is therefore not enough to address the problem effectively.
Extensive research has shown that if the state wants to settle farmers in this manner and solve the problem, the Government's total involvement in the purchasing of land for beginner and small farmers must be reviewed. The question is: What measures are being taken by the Department of Agriculture to address this difficult experience by the small farmers?
The trends towards a more liberated economy and greater exposure to market forces in the rest of the world may limit the Government's ability and potential to intervene in the marketing of agricultural products. What steps or measures have been taken to ensure that the output of the emerging farming communities receives an adequate share of the export market in spite of the global trend? Moreover, what share of the small farmer output is exported to the Southern Africa Development Community and the European Community? [Applause.]