Farms: Taxation on ‘unused land’ and ANC’s transformation agenda


Farms: Taxation on ‘unused land’ and ANC’s transformation agenda
Farms: Taxation on 'unused land' and ANC's transformation agenda

TLU SA takes note of the ANC’s legotla idea of ​​taxation on unused land, to make more land available for its transformation agenda – but at the same time calls on the ANC to explain what it means by unused land.

“Perhaps the ANC is referring to the land that it recognised in terms of its land transfer programmes, 95% of which went out of production? When a farmer rests certain camps in a rotation programme, it is far from unused and scientific sustainability has been built in there,” explains Mr. Henry Geldenhuys, TLU SA President.

“Distributing land is of no value if it does not consider the other factors of production in a particular synergy. Land on its own is not wealth, but if an entrepreneur (farmer) manages it with expertise together with the other factors in a dynamic production process to be profitable, he has the chance to create wealth.”

Mr. Geldenhuys adds: “The ANC must decide whether it wants food security in the country or not. With his policy, he is putting our country’s food production under the wrong kind of pressure. This approach of trying to get hold of land can at best be seen as a way of getting votes. Over the years, TLU SA and others have repeatedly made economically oriented proposals on how new entrants can enter the agricultural environment and have the chance of success, provided of course that they will accept the responsibility it takes to be able to farm.”

Mr. Geldenhuys further asks the question of what still needs to be explained about how the economy works and the only mechanism that determines whether there is economic success or not, namely the market power principles.

“Let’s try again. The entrepreneur or entrepreneur as one of the factors of production is the person who takes the risk of combining with his or her relevant knowledge the other factors of production, namely raw materials, capital, and labour, in a business. With the rapid development of technology and mechanisation, it could be seen as a fifth factor of production also in the sense that it can replace labour. Something the unions may need to take note of.

“It may be necessary for the ANC to learn how to feed people with an ideology, because with cadre deployment, self-enrichment and almost no economic outcomes, it may be all that will be left over in time to feed people with,” warns Mr. Geldenhuys.

Read the original article in Afrikaans on TLU SA