1 DEPARTMENT OF AGRICULTURE RURAL DEVELOPMENT 201819 STATE

1 DEPARTMENT OF AGRICULTURE & RURAL DEVELOPMENT 2018/19 STATE OF READINESS 04 SEPTEMBER 2018

AGRICULTURAL SECTOR IN THE PROVINCE 2 4 Districts, 19 Municipalities, 1 Metro with 79 Towns • Free State stats survey 2016 • Agriculture dominates the Free State landscape • Total FS population 2, 86 m (2016) with • Area - 129 480 square miles or 12. 9458 m ha 5. 1% of National Population with an • The arable land appr. 3. 2 m ha, whilst natural veld and grazing cover appr 8. 7 m ha increase of approximately 160 000 (2011) • • 58, 3% are male and 41, 7%are female • Free State is second smallest province in country in terms of population size. Northern Cape is smallest • • Households increased from 823 316 in 2011 to 946 639 in 2016 • Ave hse hold size decreased from 3, 3 m (2011) to 3, 0 m (2016) • Mangaung Metro (255 938) and Thabo Mofutsanyana (246 171) have the highest number of households • Poverty head count remains at 5, 5% • • 220 863 Households had run out of money in the last 12 months • 15, 7% Households have missed a meal • The province, with more than 30, 000 farms, produces over 70% of the country's grain. Field crops yield almost two-thirds of the gross agricultural income of the province. Free State Province is situated in the centre of the country, sharing borders with 7 other provinces and internationally with Lesotho (N 8 Corridor Competitive, Trade and Investment Advantage); thus referred to as the “Heart of the Country”; It’s also referred to as the “Bread -Basket of the Country”; The sector’s contribution over the past year has been hovering between just under 2. 4% and just over 3% Agro-ecologically, it is generally on average

WATER MANAGEMENT AREA • • 3 The Free State is encircled by three of the province’s main rivers, namely: the Orange, Vaal and Caledon Rivers. Water from the Vaal River is mainly supplied for commercial & domestic use. The agricultural sector is the main consumer of water from the Orange and Caledon Rivers. The Free State has 12 state dams and other rivers making the province the most water-rich province in South Africa. Two main water catchment areas, namely the Vaal and the Orange, are within the Free State.

Average Annual Rainfall and Rainfall Class 4

5 PURPOSE • To provide update on the Fetsa Tlala implementation state of readiness, focusing on Massification of food production (Grains, mechanisation and food security projects).

6 OBJECTIVES • To measure readiness against time frames • To strengthen collaboration • To increase production and number of hectares planted • To achieve value for money

AGRICULTURAL POTENTIAL 7

AGRICULTURAL POTENTIAL • Comparative advantage in terms of agricultural commodities per district DISTRICTS Xhariep Mangaung Metro Lejweleputswa 8 MAIN PROJECTS / PROGRAMMES RESOURCES Livestock / game (incl. processing) Irrigation, Fodder & Vegetable production (3000 Ha of Water Allocated to the Free State) FISH HUB: Fish production (incl. processing) Small Stock (Sheep farming) Piggery Ostriches (RSA No 1 at 70 % international-markets), Wool, (23%) 10 million kg. Mega Agri Park (SPRINGFONTEIN): Springbok route Mining (Diamond) Eco-Tourism (Xhariep Dam) Population (2016): 125 884 Number of farming units: 7 880 Number of Owners: 2 799 Average Annual Rainfall: 250 -450 (3000 ha new irrigation development for new farmers) Agricultural land potential: Low to moderate potential grazing land LIVESTOCK: HUB value chain (incl. processing) Agro processing-Vegetables, wool and beef. Poultry (Broilers) Mega Agri Park (THABA NCHU): Cheetah route Population (2016): 787 803 Number of farming units: 7 105 Number of Owners: 3 067 Average Annual Rainfall: 450 -550 Agricultural land potential: Marginal to moderate potential arable land POULTRY HUB (incl. processing)-Layers and Broilers. Piggery Grain HUB, Groundnuts, Pecan Nuts Mega Agri Park (WESSELSBRON) Sorghum /Mabele (Bio-fuel /Bio-ethanol in Bothaville) Mining Flamingo route Population (2016): 646 920 Number of farming units: 12 096 Number of Owners: 4 945 Average Annual Rainfall: 550 -700 Agricultural land potential: Marginal to moderate potential land

OVERALL APPROACH – FOCUS AREAS DISTRICTS Thabo Mofutsanyana MAIN PROJECTS / PROGRAMMES DAIRY HUB: – Parlours and Processing Plant/s Livestock value chain (incl. fodder production and processing) Piggery POULTRY HUB: -Layers, broilers and Hatchery Fruit, Grain HUB Mega Agri Park (QWAQW: PHUTHADITJHABATSHIAME): Eagle route GRAIN/Crops & Vegetable Hub POULTRY-BROILER & LAYERS: HUB Milk goats Mega Agri Park (PARYS/Sasolburg): Lion route Fezile Dabi RESOURCES Ø Ø Ø Ø Number of farming units: 12 433 Number of Owners: 4 989 Average Annual Rainfall: 650 -850 Agricultural land potential: marginal to moderate potential arable lands Population (2016): 779 330 Poultry-Broiler, Layers-Eggs, Dairy-Milk, (FS contribute 605 million litres), Red meat & by products (Cattle and livestock), The District contribution in terms of field crops is relatively high for Cherries productivity & markets, Soya-beans and Wheat respectively. Number of farming units: 14 730 Number of Owners: 4 771 Average Annual Rainfall: 650 -850 Agricultural land potential: marginal to moderate potential arable lands Population (2016): 494 777 9

10 PARTNERSHIPS • List partners; state purpose and contribution. • Grain SA-Farmer Training. • VKB-Support Mechanisation-Mentorship-Production Loans (20 Farmers) • Potato SA: To expand potato production (5 Farmers). • Collaboration with ARC (WEMA)-Planting 2 Hectares X 5 DCs. • OVK-Farmer Mentorship and Production loans. • Organised Agriculture (AFASA & FREE STATE AGRICULTURE).

CLIMATE SMART AGRICULTURE (CSA) 11 • Infield Rain Water Harvesting Technique (IRWH) – Small Plots (Homestead gardens) • Application of IRWH (Homestead Gardens) • IRWH – Larger Areas (crop lands & commercially) • Poverty, food insecurity & unemployment is generic • Subsistence farmers- semi-arid region in Southern Africa • Crop yields & RWP are low (Marginal): ü Low & erratic rainfall ü High evaporative demand ü High Runoff losses • High risk of crop failures using conventional production techniques

UNDERSTANDING AND IMPLEMENTING CSA EXPERIENCES MAIZE Water Efficient Maize for Africa (WEMA) Matured WEMA Cob Harvested WEMA Cultivars 12

13 Discussions

14 PLANTING DATES Land Prep. Optimal planting date All East Central West Maize 15 Aug-15 Oct – 15 Nov Sunflowers 15 Aug-15 Oct Not recommended 15 Nov – 25 Dec Crop Cut off planting date East Central West 1 Nov – 16 Dec 30 Nov 20 Dec 25 Dec 15 Nov – 31 Dec 15 Jan 25 Jan Not recommend ed

15 PLANNED HECTARES PER COMMODITIES COMMODITY HACTARES IMPACT (TONS) ON AVERAGE R VEGETABLES 196, 7 - R 15 mil MAIZE 720 2160 (@) R 2, 330/ton R 5, 033 mil SOYABEANS 480 720 (@) R 4, 390/ton R 3, 161 mil BEANS 120 180 R 0. 504 FODDER 50 430 R 1. 075 mil SUNFLOWER 810 1296 (@) R 5, 055/ton R 6, 551 mil 2 377 4786 R 31, 324 mil TOTAL

16 SIGNED APP FETSA TLALA TARGETS (2018/19) PROVINCE FREE STATE: Ilima/Letsema Grant SIGNED OFF APP TARGETS 2 377 QUARTERLY TARGETS Q 1 Q 2 Q 3 Q 4 0 44 2 245 0 0 7 500 0 88 Grain. SA (Not on APP) 7 500 GFADA (Not on APP) 6 149 0 0 6 149 0 3 200 0 2 000 0 21 226 0 44 21 094 88 Mechanisation Coops (Over and above 2 377 Ha) AFASA Total Hectares

STATE OF READINES PRODUCTION INPUTS COMODITY PROCUREMENT PROCESS STATUS ORDER STATUS DUE DATE Diesel RT 70 92000 L Ordered, 107000 L to be ordered Done 17 Sept 2018 Seeds BAC Bid Adjudication 20 Sept 2018 Committee (BAC) to be done by 14 Sept 2018, orders be generated by 20 Sept 2018 Fertilizers BAC to be done by 20 Sept 2018 14 Sept 2018, orders be generated by 20 Sept 2018 17

STATE OF READINES PRODUCTION INPUTS COMMODITY PROCUREMENT ORDER STATUS PROCESS STATUS Agro-chemicals BAC DUE DATE BAC to be done by 20 Sept 2018 14 Sept 2018, orders be generated by 20 Sept 2018 18

STATE OF READINESS-PRE PLANTING PHASE Beneficiary Selection Project Approval SCM processes Farmer Readiness Average Readiness Rating 100% 50% 65% 84% 19

SUMMARY OF THE STATE OF READINESS (FREE STATE PROVINCE) 2018/2019 Districts Mangaung metro Targeted Benefi. Hectares ciaries 160 4 2 7 Seeds Fertilizers Ordered (Tons) 0, 9 0 Mechanization Units (Tractors) 20 Overall Readiness Rating Pesticides (Litres) 3 240 John Deere, 2 offset, 2 maize planter and 2 rippers. The farm is close to Woodbridge scheme therefore mechanizations can be sourced in 65% 640 160 0 2 290 Kw tractor. X 1 , 18 Disc offset + Mechanisation Coop 55% 16 4 0 55% 44 11 0 35% 4 1 0 Mangaung metro 11 5 0 0 290 Kw tractor. X 1 , 18 Disc offset + Mechanisation Coop Mangaung metro 1 3 0 0 n/a Business Difference Plan in Ha Hectares

SUMMARY OF THE STATE OF READINESS (FREE STATE 21 PROVINCE) 2018/2019 Districts Targeted Benefi- Seeds Fertilizers Mechanization Units Hectares ciaries Ordered (Tractors) (Tons) TM 150 1 4, 25 42, 5 TM 100 1 0, 75 15 Own mechanization: 3 xtractors ( 60 kw), 4 rows planter (maize and beans); ripper, boom sprayer; 1 x 18 Hydraulic disc offset x 1 combine harvester Own mechanization: 1 xnew Holland big, 4 rows planter (maize and beans); ripper The farmer has a long term working relationship with Mr. Magnus Jacobs, a neighbouring farmer who will assist him with mechanization Using Tsebelisano mechanization scheme 1 x MF 470 Kw, planter, off set and boom sprayer Overall Readiness Rating Pesticides (Litres) Business Differe Plan nce in Hectares Ha 65% 600 150 0 65% 400 100 0 TM 100 1 0, 75 15 Own Mechanization: 1 x 103 KW tractor; 1 x big off set planter. The farmer engaged a contractor as well to compliment with mechanization and skills TM 8 1 n/a 4 1 x MF 280, ripper and disc 65% 32 8 0 35 2 x John Deere ( 266 Kw); 2 x rippers; 2 x 8 row planter; tresh field harrow disc 65% 400 100 0 TM 100 1 1, 275

SUMMARY OF THE STATE OF READINESS (FREE STATE 22 PROVINCE) 2018/2019 Districts Targeted Hectares Benefi Seeds ciaries Ordered (Tons) Fertilizers Mechanization Units (Tractors) Ordered (Tons) Overall Readin ess Rating Pesti cides (Litre s) Busines Differe s Plan nce in Hectare Ha s 65% 280 70 0 TM 70 1 3, 85 10, 5 Own mechanization: 3 x tractors ( Landini- 88 kw; John Deere 77 kw; MF 290), 1 x 4 skaar plough, 1 x 4 row planter, 2 x boom sprayer, 1 x 32 disc; 2 x LDV bakkie, and a 10 ton truck TM 120 1 1, 35 30 Own 1 x Fiat 65 KW tractor, planter will be hired and the farmer engaged a contractor to assist him with ploughing 65% 480 120 0 TM 100 1 0, 75 15 1 x MF 470, planter x 1 combine harvester 65% 400 100 0 TM 100 1 0, 75 15 Own mechanization: Tractor- MF 91 Kw • Ripper- 7 teeth • Trailer- 10 ton • Planter- 4 row • Disc TM 8 1 n/a 4 1 x MF 280, ripper and disc 65% 32 8 0 TM 100 1 1, 275 35 2 x John Deere ( 266 Kw); 2 x rippers; 2 x 8 row planter; tresh field harrow disc 65% 400 100 0

SUMMARY OF THE STATE OF READINESS (FREE STATE 23 PROVINCE) 2018/2019 Districts Targeted Hectares Beneficiaries Seeds Fertilizers Ordered (Tons) Lejweleputsw a 100 5 1, 75 30 Lejweleputsw a 100 1 0, 63 15 Lejweleputsw a 50 100 4 6 0, 35 0, 63 Mechanization Overall Pesticides Business Difference Units Readiness (Litres) Plan in Ha (Tractors) Rating Hectares 105 kw tractor 1 planter & 1 harvester + Mechanisation Coop 65% 400 100 0 7, 5 105 kw tractor 1 planter & 1 harvester 65% 200 50 0 15 105 kw tractor 1 planter & 1 harvester + Mechanisation Coop 55% 400 100 0

SUMMARY OF THE STATE OF READINESS (FREE STATE 24 PROVINCE) 2018/2019 Districts Target Benef Seeds Fertilize Mechanization Units (Tractors) ed iciarie Ordere rs Hectar s d Ordered es (Tons) Overall Pesticid Busines Differe Readine es s Plan nce in ss (Litres) Hectare Ha Rating s FD 120 2 5 6 Farmer does have machinery including 2 x tractors, a plough, 2 discs and a maize planter the equipment is not enough but farmer will augment with leasing neighbouring farmer Mr. J. P. Kruger @ 082 490 1956 FD 110 3 5, 5 11 Farmer does not have own machinery but will utilize services of neighbouring farmer Mr. K. Muller @ 082 571 3963 65% 1104 110 0 25 The farmer only has a few ageing equipment namely a bailer, disc, plough, slasher and rake , farmer will utilise services of the FD Coop Mr. J. Makate @ 0829044951 55% 1500 100 0 7, 5 The farmer does not have own equipment, but will utilize services of neighbouring farmer Mr. A. Grobelaar @ 0825662693 65% 584 100 0 18, 75 The farmer does not have own equipment but will utilize services of neighbouring farmer Mr. F. Klopper @0825597346 55% 1614 150 0 FD FD FD 100 150 2 2 2 0, 85 5 7, 5 65% 612 120 0

SUPPORT PROVIDED TO THE FARMERS: MECHANIZATION 25 Tractor package allocations to the different Districts derived via criteria established linked to arable land on Land Reform Farms, Commonages, Ilima/Letsema and Communal : Xhariep 07 Mangaung Metro 14 Lejweleputswa 19 Thabo Mafutsanyane 24 Fezile Dabi 08 TOTAL 72 Ø Ø FROM THE 72 TRACTORS 57 TRACTORS ARE IN OPERATION. All co-operatives have formal business plans Bakkies for 3 co-operatives, 1 new tractor, 6 & 10 Ton trailers Accounting package (Quickbooks) installed in all co-operatives’ administrators Computers and training provided Ø Mentorship relationship has been created between the beneficiaries and established farming co-operatives in their respective regions. Ø Challenges: Equipments, Replacement, Ratio of Tractors: farmers, Group Dynamics, other coops not fully functional etc.

Mechanisation strategy 26 Ø The province is in the process of developing a new strategy on mechanisation. Ø The new mechanisation strategy will be based on sub-district, depending on potential inherent of the local areas and agricultural activities.

27 COSTS INCURRED District Targeted hectares Seeds ordered Tons Costs incurred Fertilizer ordered Tons Costs incurred Mechanisation units (tractors) Repair/main tenance Costs incurred Pesticides (litres) Litres Total costs incurred Costs incurred Mangaung metro 160 0, 9 0 3 0 R 25 000 (Farmer) 0 640 0 0 Mangaung metro 4 0 0 2 0 0 0 16 0 0 Mangaung metro 11 0 0 R 2 000 (Farmer) 0 44 0 0 Mangaung metro 1 0 0 0 4 0 0 FD 120 5 0 6 0 R 23 000 (Farmer) 0 480 0 0 FD 110 5, 5 0 11 0 R 18 000 (Farmer) 0 440 0 0 FD 100 0, 85 0 25 0 R 20 000 (Farmer) 0 400 0 0 FD 100 5 0 7, 5 0 R 18 000 (Farmer) 0 400 0 0 FD 150 7, 5 0 18, 75 0 R 25 000 (Farmer) 0 600 0 0

28 COSTS INCURRED District Targeted hectares Seeds ordered Tons Costs incurred Fertilizer ordered Tons Costs incurred Mechanisation units (tractors) Repair/mai ntenance Costs incurred Pesticides (litres) Litres Total costs incurred Costs incurred TM 150 4, 25 0 42, 5 0 R 25 000 (Farmer) 0 600 0 0 TM 100 0, 75 0 15 0 R 13 000 (Farmer) 0 400 0 0 TM 100 0, 75 0 15 0 R 16 000 (Farmer) 0 400 0 0 TM 100 0, 75 0 15 0 R 15 000 (Farmer) 0 400 0 0 TM 70 3, 85 0 10, 5 0 R 8 000 (Farmer) 0 280 0 0 TM 120 1, 35 0 30 0 R 25 000 (Farmer) 0 480 0 0 TM 100 0, 75 0 15 0 R 15 000 (Farmer) 0 400 0 0 TM 100 0, 75 0 15 0 R 13 000 (Farmer) 0 400 0 0 TM 8 n/a 0 4 0 0 0 32 0 0 TM 100 1, 275 0 35 0 R 20 000 (Farmer) 0 400 0 0

29 COSTS INCURRED District Targeted hectares Seeds ordered Tons Costs incurred Fertilizer ordered Tons Costs incurred Mechanisation units (tractors) Pesticides (litres) Repair/mai ntenance Costs incurred Litres Total costs incurred Costs incurred Lejweleputswa 100 1, 75 0 30 0 0 (Farmer) R 20 000 400 0 0 Lejweleputswa 100 0, 63 0 15 0 0 (Farmer) R 18 000 400 0 0 Lejweleputswa 50 0, 35 0 7, 5 0 0 (Farmer) R 10 000 200 0 0 Lejweleputswa 100 0, 63 0 15 0 0 (Farmer) R 15 000 400 0 0

BACK YARD WATER SAVING TECHNIQUES-MAXIMISE PRODUCTION 30 HLASELA TLALA KA DIRATSWANA

31 JOBS CREATED District Job created Female Male Total Youth Disabled Mangaung Metro (permanent) 3 7 5 0 15 Temporary jobs during peak periods 7 3 3 0 13 Thabo Mofutsanyana (permanent) 16 30 18 0 64 Temporary jobs during peak periods 127 60 75 0 187 Lejweleputswa 2 4 4 0 10 Temporary jobs during peak periods 16 4 3 0 23 6 8 11 3 4 2 0 0 Fezile Dabi Temporary jobs during peak periods Total 21 13

JOBS CREATED District 32 Jobs created Female Male Total Youth Disabled Mangaung Metro Permanent 3 7 5 0 15 Temporary jobs during peak periods 7 3 3 0 13 Permanent 16 30 18 0 64 Temporary jobs during peak periods 127 60 75 0 262 Permanent 2 4 4 0 10 Temporary jobs during peak periods 16 4 3 0 23 6 8 11 3 4 2 0 0 185 122 114 Thabo Mofutsanyana Lejweleputswa Fezile Dabi Permanent Temporary jobs during peak periods 21 13 Total 421

33 I THANK YOU HONOURABLE MEMBERS