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COMPREHENSIVE AGRICULTURAL SUPPORT PROGRAMME
(CASP), AND
ILIMA/LETSEMA CONDITIONAL GRANTS
(FOCUS ON 2019/20 BUSINESS PLAN)
DEPARTMENT OF AGRICULTURE, FORESTRY AND FISHERIES
PRESENTATION TO THE PORTFOLIO COMMITTEE ON AGRICULTURE,
LAND REFORM AND RURAL DEVELOPMENT
3 SEPTEMBER 2019
Presentation Outline
• Acronyms
• Why CASP?
o CASP objectives
o CASP pillars and targeted beneficiaries
• How CASP fits into the National Development Plan : vision 2030
• Policy imperatives informing investments
• Allocations since inception
• CASP conditional grant framework and 2019/20 Business plan
• Ilima/Letsema conditional grant framework and Business plan
• MTEF Allocations and 2019/20 Allocations
• Disbursement Schedule
• To What extent are set objectives achieved?
• Challenges
• Way Forward
2
Acronyms
• ACB - Agriculture Credit Board
• ARC – Agriculture Research Council
• APP – Annual Performance Plan
• APS - Agricultural Products Standards
• CASP – Comprehensive Agricultural Support Program
• DAFF – Department of Agriculture, Forestry and Fisheries
• DPME - Department of Planning, Monitoring and Evaluation
• EC – Eastern Cape
• GDP - Gross Domestic Product
• FMD - Foot and Mouth Disease
• FS – Free State
• HSRC - Human Sciences Research Council
• ICT - Information and Communication Technologies
• KZN – KwaZulu-Natal
• LB – Land Bank
• LP – Limpopo
3
Acronyms
• MAFISA – Micro Agricultural Financial Institutions of South Africa
• MP - Mpumalanga
• MTEF – Medium Term Expenditure Framework
• NAP – National Assessment Panel
• NC – Northern Cape
• NDP - National Development Plan
• NW – North West
• PDA – Provincial Departments of Agriculture
• PPECB - Perishable Products Export Control Board
• RAAVC - Revitalization of Agriculture and Agro-processing Value Chains
• SAGAP -South African Good Agricultural Practices
• WC – Western Cape
4
Why CASP?
• The Comprehensive Agricultural Support Programme (CASP) was introduced in
2004/5 financial year to respond to the gap that resulted following the closure of
the Agriculture Credit Board (ACB) in 1998, and the broader impacts as related to
the support farmers received from government;
• The closure of the ACB and reduced support to the ARC led to a situation whereby
direct and indirect support to emerging or small holder farmers would shrink and
without other instruments and or institutions it became nearly impossible for the
new beneficiaries of Land reform to access credit and or other means of support
from commercial banks and the Land bank.
• The failure to replace the ACB with a similar type of institution with a specific
mandate to assist the African smallholder farmers meant that the vast investments
made to provide them with land was not fruitful since they were not in a position to
cultivate and bring into production their newly inherited land and assets.
• Also the changes to the marketing environment which had been dominated by
marketing boards and a single channel marketing system meant that the
agricultural cooperatives who were farmer based entities consolidated and
changed from agents of the state to privately held companies.
5
Why CASP?
• Commercial farmers had received and benefited from the infrastructure such as
storage, marketing, input supply and extension services provided by the
cooperatives which had been funded from state coffers. These were now no more
available to service the new emerging black farmers and beneficiaries of Land
Reform;
• Considering the historical context – whereby the African farmer of whatever shape
or form had been denied access to resources and support the growing gap
between them and existing commercial farmers instead of narrowing actually grew.
• The cooperatives were far from the lands and areas where smallholder farmers
were based and by converting from farmer cooperatives into companies – the
African farmers were denied access to their services and support.
• The Strauss Commission that had spearheaded the revisions and changes to the
Landbank and the broader financial landscape had made recommendations which
had not been implemented to the full. Hence, following a review of the
recommendations of the Strauss Commission it was clear that the financial
“sunrise” subsidies and the adoption of a “sunrise” package to support the
beneficiaries of the land reform programme requiring finance would require a new
institutional arrangement and framework leading to the implementation of CASP.
6
CASP - Objectives
CASP sets out to deliver a wide range of economic, social and environmental
benefits.
On the economic front :
It is expected to produce higher levels of productive efficiency, create on-farm and
off-farm jobs, increase income and wealth in the rural economy;
As the positive impacts of CASP on the agricultural sector gain momentum,
significant amounts of domestic and foreign investment will be attracted to
complement the initial capital injections through the programme;
Leading to reversal of the inequities in farmland access and use rights inherited
from the apartheid era.
7
In terms of Social Benefits:
Its contributions to household and national food security
should significantly add to poverty reduction and improve
rural living standards; reduce crime, violence and socio-
political instability resulting from conflict over limited
agricultural resources.
In terms of Environmental Benefits:
Pertaining to environment security, CASP supposedly
promotes ecologically sustainable farming activities.
8
CASP – Objectives (2)
CASP – pillars and targeted beneficiaries
• The programme is delivered through six priority pillars which are:
1. On and off farm infrastructure support;
2. Knowledge and information management;
3. Technical and advisory services;
4. Training and capacity building;
5. Market and business development support; and
6. Financial services (branded MAFISA).
• Target Population
o The Hungry
o Previously disadvantaged subsistence, smallholder and commercial farmers
o Entrepreneurs
o Youth, women and people with disabilities
9
How CASP fits into the NDP: Vision 2030
Chapter 6: Advocates for an integrated and inclusive rural economy
• Grow the economy and increase jobs by expanding irrigated agriculture,
focusing on: Water use efficiency and New irrigation schemes;
• Pick and support those industries and regions with the highest growth and job
potential;
• Focus on value chains and agro – processing (create jobs and grow the rural
economy)
• Focus on Land Reform
o Develop strategies that give new entrants access to value chains
o Find creative combinations between opportunities, e.g.
− Support successful communal farmers – security of tenure
− Collaboration between commercial and land reform beneficiaries
10
Policy imperatives informing investments
1. Potential to Create 1 million jobs by 2030 (National Development Plan)
2. Expand commercial agriculture to achieve 250 000 direct jobs and 130 000 indirect jobs by 2030 (support 450 black commercial farmers)
3. Put 1 million hectares of unutilised land under production by 2019 (Fetsa Tlala)
4. Support 300 000 smallholder producers by 2019 (New Growth Path)
5. Expand 1.5 million hectares under irrigation by 500 000 (NDP: 2030 Vision)
6. Ensure food security for all (Act 108 of 1996, Constitutional Mandate)
7. Ensure sustainable use of natural resources
8. Grow agricultural contribution to the GDP - driven by the Revitalization of Agriculture
and Agro-processing Value Chains (RAAVC – 9 point plan) – through
operationalization of the Agriculture Policy Action Plan.
11
Allocations since inception
12
The impact study on CASP for a period
2007/08 – 2011/12 was conducted by DAFF
and DPME in 2014/15.
Year
CASP
AllocationExpenditure
% SpendingNumber of
projectsBeneficiaries
R‘000 R‘000
2004/2005 200 123 62 510 46 500
2005/2006 250 157 63 1 070 53 200
2006/2007 300 252 84 870 67 400
2007/2008 415 333 80 786 60 300
2008/2009 535 402 75 703 31 039
2009/2010 715 693 97 888 26 266
2010/2011 862 854 99 1 271 27 972
2011/2012 1 029 984 94 814 36 504
2012/2013 1 534 1 260 81 536 59 286
2013/2014 1 600 1 600 100 753 65 075
2014/2015 1 861 1 394 98 804 113 257
2015/2016 1 651 1 630 99.7 1 547 42 869
2016/2017 1 641 1 572 95.4 400 25 958
2017/2018 1 645 1 446 88 468 22 906
2018/2019 1 750 810 1 892 561 90.9
TOTAL 14 238 12 700 86.8 11 420 678 532
Year
Ilima/Let
sema
Allocatio
n
Received
by
Province
Total
Available
Expenditure
Beneficiaries
R'000 R'000 R'000 R'000 %
2008/09 171 000 171 000 171 000 147 000 86 411
2009/10 50 000 50 000 50 000 67 000 134 12 967
2010/11 200 000 192 000 192 000 191 000 99.5 75 207
2011/12 400 000 400 000 400 000 396 000 99 109 197
2012/13 415 000 415 000 415 000 400 000 96.4 162 985
2013/14 438 000 438 000 454 000 424 000 93.4 147 990
2014/15 460 000 460 000 487 521 484 084 99.3 191 396
2015/16 470 768 466 713 466 713 464 269 99.5 173 019
2016/17 491 363 491 363 491 363 481 435 98 170 776
2017/18 522 139 522 139 522 139 487 543 93.3 186 243
2018/19552 423 552 423 552 423 524 939 91.1
TOTAL 4 170 693 4 158 638 4 202 159 4 067 270 96.8
CASP Conditional Grant Framework
Grant Goal
To create a favourable and supportive agricultural services environment for the
farming community, in particular subsistence, smallholder and black commercial
farmers within strategically identified grain, livestock and horticulture production areas.
13
Grant Purpose
o To provide effective agricultural support services, promote and facilitate agricultural
development by targeting beneficiaries of land reform, restitution and redistribution, and
other black producers who have acquired land through private means and are engaged
in value-adding enterprises domestically, or involved in export.
o To address damage to infrastructure caused by floods.o To revitalize agricultural colleges into centers of excellence.
CASP Conditional Grant Framework (2)
Outcome statements
o Broadened access to agricultural support for black subsistence, smallholder
and commercial farmers;
o Increased number of sustainable and profitable black producers in
horticulture, grains, livestock, and aquaculture value chains;
o Improved farming efficiency;
o Improved systems required for the maintenance of a Foot and Mouth Disease
(FMD) free status as prescribed by the World Organisation for Animal Health;
o Increased wealth creation, and sustainable employment in rural areas;
o Increased access to markets by beneficiaries of CASP;
o Improved household and national food security;
o Reliable and accurate agricultural information available for management
decision making.
14
CASP 2019/20 Business Plan
Grant Outcome Broadened access to agricultural support for black
subsistence, smallholder and commercial farmers
Outcome Indicator Number of subsistence farmers
supported with production inputs and
mechanisation
1 433
Number of smallholder farmers
supported with production inputs and
mechanisation
6 111
Number of black commercial farmers
supported with production inputs154
Number of projects supported 437
15
CASP 2019/20 Business Plan
Grant Outcome Improved farming efficiency
Outcome Indicator Number of farmers trained 26 806
Number of farmers mentored 642
Number of Extension Officers
recruited144
Number of extension personnel
provided with resources (e.g ICT
infrastructure)
3 268
Number of colleges revitalised 10
16
CASP 2019/20 Business Plan
Grant
Outcome
Maximize Job Opportunity
Outcome
Indicator
Number of jobs created
Province EC FS GP KZN LP MP NC NW WC
Jobs 1 343 210 92 1 924 986 404 390 648 1 159
Total jobs 7 156
17
SAGAP Certification programme
• DAFF in partnership with PPECB and Provinces are implementing the
South African Good Agricultural Practices (SAGAP) certification
programme for smallholder producers of fresh produce since January
2014.
• In the initial stages of implementation DAFF (Marketing and
Smallholder Directorates) with PPECB carried the costs for the
programme; and CASP only addressed non-conformances relating to
infrastructure.
• In 2018/19 provinces were requested to enter into agreements with
PPECB and carry all the costs of the programme through CASP,
addressing both soft and hard non-compliances (i.e. pre-audits,
training/workshops and infrastructure development); as outlined in
Regulation 707 of 2005 under the Agricultural Products Standards
(APS) Act of 1990.
18
SAGAP Certification - Progress made to date
Province Number Participating
Pre-Audits Final AuditsCertified (Primary Production)
Certified (On farm Packhouse)
Total Certified
Number Maintaining Certification Status
Number Failed re-certification
2019/20 Allocation
Eastern Cape 17 17 0 0 0 0 0 0 1 104
Free State 14 14 0 0 0 0 0 0 300
Gauteng 27 26 7 5 4 9 1 0 1 460
KwaZulu Natal 12 12 1 1 1 2 1 0 3 000
Limpopo 27 27 3 2 1 3 1 0 13 789
Mpumalanga 26 23 11 10 1 11 8 0 1 500
Northern Cape 119 62 65 54 0 54 54 0 250
North West 15 15 1 1 0 1 0 1 3 000
Western Cape 18 14 5 5 1 6 1 0 800
Total 275 210 93 78 8 86 66 1 25 203
% 44% 37% 4% 41% 31% 0%
19
Placement of unemployed graduates in commercial farms
Province
2019/20
No. GraduatesStipend (Year 1)
per graduateTotal Budget
Eastern Cape 120 91 350 10 962 000
Free State 120 91 350 10 962 000
Gauteng 80 87 500 6 960 000
KwaZulu natal 120 91 350 10 440 000
Limpopo 120 91 350 10 962 000
Mpumalanga 120 91 350 10 440 000
Northern Cape 80 87 500 7 000 000
North West 120 91 350 10 962 000
Western Cape 120 91 350 10 962 000
Total 1 000 89 650 000
20
CASP 2019/20 Business Plan
Grant Outcome Improved systems required for the maintenance
of a Foot and Mouth Disease (FMD) free status in
Limpopo, KwaZulu Natal and Mpumalang as
prescribed by the World Organisation for Animal
Health
KZN 600 Vaccinations done in KZN
2 000 (25km fencing)
LP 37 000 Vaccinations done in LP
6 050 (20 Cattle grids, 20 farm gates and 130km
fencing erected).
MP Vaccinations through equitable share.
Total Budget R8 650 000
21
KyD (Kaonafatso ya Diphoofolo)
ProvinceBudget
(R'000)Graduates
Number of
farmers
Number of
Auction
Events
Number of
Farmers Day
EC 3 661 4 800 6 8
FS 3 661 4 800 2 5
GP 3 661 4 800 2 5
KZN 5 593 6 4 000 12 10
LP 4 040 4 2 400 6 8
MP 3 661 4 1 800 6 8
NC 3 661 4 800 2 5
NW 3 661 4 1 800 6 8
WC 2 041 4 500 0 4
Total 33 640 38 13 700 42 61
22
Ilima/Letsema Conditional Grant Framework
Grant GoalTo reduce poverty through increased food production initiatives
23
Grant PurposeTo assist vulnerable South African farming communities to achieve an increase in agricultural
production and invest in infrastructure that unlocks production within strategically identified grain,
livestock, horticulture and aquaculture production areas.
Outcome statements
o Increased production of grains, livestock, horticulture and aquaculture at both household
and national level;
o Improved household and national food security;
o Improved farm income;
o Maximised job opportunities;
o Reduced poverty;
o Rehabilitated and expanded irrigation schemes.
Ilima/Letsema 2019/20 Business Plan
Grant Outcome Increased agricultural production of grains, livestock,
horticulture and aquaculture at both household and
national level
Outcome Indicator Hectares planned 92 802 ha
Yield per unit area (average 3 tons) 278 406 tons
24
EC FS GP KZN LP MP NC NW WC
Ha 35 809 9 511 2 000 5 300 14 339 11 262 1 469,00 12 912 200
0
5 000
10 000
15 000
20 000
25 000
30 000
35 000
40 000
Ha
Ha
Commodities Prioritized (95% grains in 2019/20)
25
Ilima/Letsema 2019/20 Business Plan
Grant Outcome Improved households and national food security
Outcome Indicator Number of households supported
with inputs for vegetable gardens67 612
Number of school gardens supported 16
Number of community gardens
supported1 040
Number of subsistence farmers
supported with production inputs and
mechanisation
31 978
Number of smallholder farmers
supported with production inputs and
mechanisation
7 257
Number of black commercial farmers
supported with production inputs203
Vulnerability Assessment Surveys
Conducted in 9 provincesR45 768
26
Ilima/Letsema 2019/20 Business Plan
Grant
Outcome
Maximize Job Opportunity
Outcome
Indicator
Number of jobs created
Province EC FS GP KZN LP MP NC NW WC
Jobs 1 801 13 333 63 2 600 4 609 146 610 119 99
Total jobs 23 380
27
Ilima/Letsema 2019/20 Business Plan
Grant Outcome Rehabilitated and expanded irrigation schemes.
Outcome Indicator Number of Irrigation schemes
revitalised7
PROVINCE IRRIGATION SCHEME R’000
EC
Keiskammahoek 6 549
Eerde Koning (lower Keiskammahoek) 2 000
Qamata 8 299
KZN Makhathini 31 500
Pongola 2 976
NW Taung 7 101
NC Vaalharts 15 000
Total 73 425
28
Summary Business Plans for 2019/20 Financial Year
• Total allocation R1, 538 325 billion
• 1433 Subsistence farmers supported
• 6111 Smallholder farmers supported
• 13 700 Smallholder farmers participating in KYD
• 154 Commercial farmers supported
• 437 projects supported
• 26 806 Farmers trained, 642 farmers mentored
• 7 156 jobs targeted
• 10 Colleges of Agriculture revitalized (ongoing)
• Smallholder farmers SAGAP Certified and linked to
markets
• Farmers affected by flood disasters supported in
Limpopo, Mpumalanga and Western Cape
• R 368 million allocated for Extension Recovery
Plan (Training, Resources, Salaries)
• Revitalize Taung, Vaalhaarts, Makhathini, Pongola,
Keiskammahoek, Eerde Koning and Qamata
irrigation schemes
• Improve systems towards FMD free status in
Limpopo, Mpumalanga and KwaZulu Natal
• Total allocation R583 million
• 511 projects approved
• 67 612 Vulnerable households supported with
starter packs to produce own food (food gardens)
• Vulnerability Assessment Survey conducted in 9
provinces in partnership with HSRC
• 16 School gardens supported
• 1 040 Community gardens supported
• 31 978 Subsistence farmers supported (1ha)
• 7 257 Smallholder farmers supported
• 203 Commercial farmers supported
• 92 802 ha planted; average yield of 3ton/ha
• 23 380 Jobs created
29
CASP Targets ILIMA/LETSEMA Targets
MTEF Allocations
30
Total MTEF transfer to PDA’s = R6, 879 821 Billion
Total MTEF transfer to LB = R1, 037 300 Billion
Total 2019//20 – 2021/22 MTEF allocation = R7, 917 121 Billion
Conditional Grants 2019/20 2020/21 2021/22
CASP 1 538 325 1 675 989 1 813 718
Ilima/Letsema 583 359 615 444 652 986
Total conditional grant (NAP - PDA) 2 121 684 2 291 433 2 466 704
Blended Funding (LB) 271 469 295 763 320 068
Blended Funding (Smallholder) (LB) 150 000
Total transfer to LB 421 469 295 763 320 068
Total grants 2 543 153 2 587 196 2 786 772
CASP Allocation 2019/20
Province
Total
Allocations Projects ERP Colleges Disaster
R'000 R'000 R'000 R'000 R'000
Eastern Cape 244 101 143 338 84 362 16 401
Free State 168 373 130 192 29 299 8 882
Gauteng 91 306 74 891 16 415 0
KwaZulu-Natal 199 351 138 606 48 440 12 305
Limpopo 246 542 137 492 82 383 18 415 8 252
Mpumalanga 154 076 117 216 28 295 0 8 565
Northern Cape 119 458 90 511 28 947 0
North West 164 857 123 389 26 538 14 930
Western Cape 150 261 77 218 23 879 5 632 43 532
Total 1 538 325 1 032 853 368 558 76 565 60 349
31
Ilima/Letsema allocations
32
Province
2019/20
AllocationsSAVAC Projects
R'000 R'000 R'000
Eastern Cape 75 254 8 627 66 627
Free State 70 586 3 482 67 104
Gauteng 31 974 1 651 30 323
KwaZulu-Natal 75 253 3 451 71 802
Limpopo 75 254 6 151 69 103
Mpumalanga 61 504 5 251 56 253
Northern Cape 64 169 2 777 61 392
North West 70 586 4 577 66 009
Western Cape 58 779 9 301 49 478
Total 583 359 45 268 538 091
Approved Disbursement Schedule
CASP
Province
Q1 Q2 Q3 Q4
17-May-19 30-Aug-19 31-Oct-19 31-Jan-20
EC 21% 37% 29% 13%
FS 14% 40% 30% 16%
GP 6% 33% 31% 30%
KZN 10% 20% 40% 30%
LP 17% 31% 30% 22%
MP 10% 19% 51% 20%
NC 10% 25% 40% 25%
NW 15% 35% 40% 10%
WC 20% 40% 30% 10%
Total 14% 31% 36% 20%
PROVINCE
Q1 Q2 Q3 Q4
17-May-19 30-Aug-19 31-Oct-19 31-Jan-20
Eastern Cape 15% 35% 30% 20%
Free State 5% 40% 35% 20%
Gauteng 10% 40% 30% 20%
KwaZulu-Natal 10% 35% 35% 20%
Limpopo 20% 30% 30% 20%
Mpumalanga 15% 35% 30% 20%
Northern Cape 15% 35% 30% 20%
North West 10% 35% 35% 20%
Western Cape 20% 30% 30% 20%
Total 13% 35% 32% 20%
33
To what extent are the set goals achieved?
• Some Findings from the Impact Study conducted in 2014/15:
o The Comprehensive Agricultural Support Program (CASP) has significantly
contributed towards growth and the sustainability of individual smallholder
farming enterprises supported.
Incomes of Project / Farm managers increased after CASP,
Jobs increased and were sustained after CASP,
85% of CASP beneficiaries have access to markets
Average area cultivated increased after CASP.
o The proportion of youth supported was low, 14% of total beneficiaries were youth
o Access to agricultural information increased after CASP and more than 77%
of beneficiaries indicated medium to high satisfaction on information received.
o Farmers were generally satisfied with the quality of Extension Services
o CASP has made a significant contribution to on-farm infrastructure and
livestock in all nine provinces. 34
Weaknesses / Challenges
• Insufficient integration of CASP into the Department of Agriculture,
Forestry and Fisheries.
• Repeated audit findings regarding inadequate monitoring of funded
projects.
• Misalignment in reporting timelines – CASP and Ilima/Letsema is
governed by the Division of Revenue Act – and its reporting timelines
are not the same as the APP reporting timelines.
35
Way Forward
• A process to integrate CASP into the Department has already begun.
All Development Funds will be managed from the office of the Chief
Financial Office, Monitoring and Evaluation of CASP projects will be
done from the Branch : Policy, Planning and Monitoring and
Evaluation and all other Pillars of CASP will be located in the
relevant Units of the Department.
• We have re-assigned within the Department, 18 Assistant Directors to
monitor CASP projects in the Provinces.
• The 1000 unemployed graduates that are placed in the Commodity
Groups will also be used to monitor CASP on a quarterly basis.
• To this effect programmes shall be headed by the relevant Chief
Directors who will regularly interact with the Provinces about the
implementation measures, monitoring and evaluation of projects with
a strong focus in the planning of programmes.
36
Way Forward
• Develop an Integrated Producer Support Model to respond to the
preliminary recommendations from the CASP Impact study that stated:
• “The most effective and efficient way to support farmers in
South Africa is to overhaul and redesign all farmer support
programmes and do away with existing silos of farmer support.
This should entail the establishment of a single programme of farmer
support to replace the numerous programmes which currently exist.”
37
38
THANK YOU
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