Financial Institutions in Requested to Assist Drought Stricken Farmers

Statement by Cobus Dowry, Minister of Agriculture in the Western Cape

The current drought situation in the Western Cape has a severe impact on the broad agricultural community and more specifically on farmers, commercial and emerging farmers alike.

This is causing hardship and suffering for our farmers. Financial drought assistance from the national government goes a long way to alleviate the plight of farmer. An amount of R18 million has been paid out to farmers in the Western Cape, by the Western Cape Department of Agriculture, It is always difficult to quantify the impact of drought, as there are many factors that have to be taken into account due to the numerous forward and backward multipliers of the agricultural sector.

In the Grain areas, estimates on yields vary from ± 1ton per hectare to ± 3 tons per hectare. In the Rooi Karroo there are 20 000 hectares that will not produce any yield. It is clear that the situation is worsening by the day.

As the provincial Department of Agriculture cannot even consider supporting these farmers from its limited resources, I have invited the major commercial banks, to brief them on the drought situation and to discuss possible assistance.

This afternoon I have met with representatives from ABSA, FNB, Nedbank, Standard Bank and the Landbank. They were briefed by my department and organised agriculture on the areas affected and the influence on the regional economy.

I have requested them, within the context of their commercial operations, to have a thorough look at the impact of the situation, not only on the farmers, but also on the economy as a whole.

I was heartened by the fact that the banks responded with enthusiasm to my invitation to meet and discuss the challenges of the situation and to jointly look for solutions. The outcome of the meeting can be described as positive and that these commercial banks will be sensitive in the approach to struggling farmers.

It is clear that the banks are not the only creditors but that cooperatives and smaller creditors will have to come on board in an effort to deal with every individual case on its own merit. A follow up meeting with these roleplayers will be held in middle November.

It was stressed however, that it is very important that farmers should not wait until the last minute to take their bank into their confidence with regard to their personal circumstances. I therefore call on farmers to make use of this invitation extended to them by these financial institutions to engage with them at an early stage to allow for decent planning and possible assistance. Organised agriculture will through their structures heed the same call.

After this meeting I am positive that there is a common concern for the plight of all our farmers and that there is sympathy and a willingness to listen.

Enquiries:
Alie van Jaarsveld: 084-604-6701