A single article is not enough to examine partnership models in detail, but if viewed through the lenses of continued and increasing agricultural investment, tangible benefits to participants, and maintained or improved livelihoods, two projects stand out. For the purposes of distinction, one will be called the 49:51 lease joint venture (JV), and the other the 50:50 state land partnership.
The 49:51 lease joint venture
The 49:51 lease JV was initiated by farming brothers in the early 2000s. They saw the opportunity to include their 60 permanent workers in the farm ownership model. The workers, through the SLAG/LRAD grants system, each received a portion of the money that was put into the pot as a down payment for purchasing the land on which the farm operates. The balance of the purchase cost was raised through debt finance from a commercial bank (the commercial farmers still had to sign surety for this debt).
The property was purchased in a vested trust where each worker had a 1/60th share. Because the project was seen as an economic development initiative, it was envisioned that over time participants would be allowed to buy and/or sell their share, with the farm maintained as a business operation and not a settlement farm.
The debt finance was repaid through a guaranteed long-term, transferable lease to the operating company on the farm. The operating company, previously owned by the farmer partners, donated 49% of the entity to the employee trust that had bought the land, thus they retained operational control but shared dividends and profits through this JV company.
This story is from the July 2021 edition of Stockfarm.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the July 2021 edition of Stockfarm.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Sign In
Shongololo Boer Goat Stud: Only The Best Will Do
South African Boer goats have proven popular worldwide for their ability to improve indigenous goat breeds. In addition, Covid-19 restrictions necessitated the establishment of electronic auctions, making it easier for foreigners to acquire outstanding genetic material exported by agents via established channels.
Feed Additives: A Veterinary Perspective
In an already volatile environment, dairy profit margins vary as milk prices and feed costs shift annually. Feed costs represent the largest input cost (an estimated 35 to 70% of the variable cost) in the production of milk. As a group of feed ingredients, feed additives can cause a desired physiological response in a non-nutrient way, such as pH shift, growth or metabolic modifier, and will usually be cost-beneficial.
Guard Against Lumpy Skin Disease
Most parts of the country received good rains during the rain season and producers are generally very optimistic. Wet seasons unfortunately come with their own set of challenges and veterinarians have cautioned livestock producers to keep an eye out for elevated biting insect loads, which may lead to conditions such as lumpy skin disease (LSD).
Climate-Related Hazards: How Smallholders Can Mitigate Its Consequences
Rainfed crop production remains the main source of food security and livelihoods for rural communities in South Africa but presents the challenge of climate variability due to its high dependence on weather variables such as rainfall and temperature.
Tips for a successful AI programme
The success of an artificial insemination (AI) programme depends on several factors that are largely within the control of the producer. It is interesting that those producers who take a hands-on approach to their cattle and inspect them regularly are also the ones who achieve the greatest success. Before his passing, Stockfarm spoke to Koot Louw, a well-known reproduction technologist from Brandfort in the Free State, about his insights into and advice regarding the AI process.
Pay Attention To Orf In Your Flocks
Some of our readers may have treated or heard of sheep or goats that have been infected with orf (vuilbek).
Sanele Mbele: Where Passion And Skill Meet
Passion for farming runs strong in the Mbele family’s veins. Sanele Mbele, from the farm Rietspruit in the De Jagersdrift area near Dundee, has inherited this passion in huge dollops.
Land Reform: Case Studies In Kwazulu-Natal
Land reform in South Africa is complex. Land reform solutions are equally complex and within partnership and development models, this is no different – but there is hope. KwaZulu-Natal has several types of partnership models and the wide variation in farming systems, as well as their different needs, set each model up for different strengths and weaknesses.
Brahman Breeders In Limpopo Have A Winning Plan
Several breeders from the Bosveld Brahman Club in Limpopo are applying genetic excellence and genotypic correctness to stimulate the demand for their bulls. At several of the last auctions, the minimum standard of bulls was raised to achieve this goal.
A Brahman Dream Comes True
For as long as he can remember, JP Mlangeni wanted to be a farmer. It might have taken a few years, from being a teacher and later a businessman, but his dream finally took shape and today he runs a fully-fledged breeding and commercial Brahman farming enterprise in Mpumalanga.
