department: agriculture comprehensive agriculture support programme (casp) portfolio committee...

DEPARTMENT: AGRICULTURE

Comprehensive Agriculture Support Programme (CASP)

Portfolio Committee presentation

Department of Agriculture

2004

CASPCASP


What is CASP?

Part 1


Aim of CASPAim of CASP

To enhance the provision of support services to

promote and facilitate agricultural development

targeting beneficiaries of the Land Reform and

Agrarian Reforms programmes.


CASP and Policy ReformCASP and Policy Reform

Policy documents providing the policy framework for

CASP:

The White Paper on Agriculture (1995)

The White Paper on Land Reform (1995)

The Reconstruction and Development programme

The BATAT Strategy (1995)

The Strauss Commission Report (1996)

The Land and Agriculture Development Programme

(1998)

Skills Development Act

National Skills Development Strategy


Policy ReformsPolicy Reforms

Deregulation of the agricultural product marketing

Changes in fiscal treatment of Agriculture

Abolition of certain tax concessions

Reduction in the direct budgetary expenditure on the

sector

The land reform, restitution and redistribution

Trade policy reforms and general liberalisation of agric

trade

Institutional reforms, esp. the three tiers of Gov involved in

Agriculture

Changes in the mandate of the Land bank

Repeal of the Agricultural Credit Act


Strategies to put policy reforms into practiceStrategies to put policy reforms into practice

Integrated Sustainable Rural Development Strategy

(ISRDS)

The Land Redistribution for Agricultural Development

sub-programme (LRAD)

Integrated Food Security and Nutrition (IFSNP)

The National Landcare programme

Agriculture Sector Strategy

Comprehensive African Agriculture Development

Programme (CAADP)

Knowledge and Information systems (KIMS)


The need for CASP The need for CASP

Inspite of strategies and policies, agricultural support

services have been inadequate, hence CASP

CASP flows from the recommendations of the Strauss

Commission report, which recommended:

• The financial “sunrise” subsidies to establish financing

mechanisms

• The adoption of a “sunrise” package of enabling

conditions for the beneficiaries of land reform to

streamline and align service delivery within the three

tiers of government

• Identified as a priority within the intergovernmental

fiscal review process focusing on service delivery.

CASP modelCASP model

The Hungry &

Vulnerable

Household food

security &

Subsistence

Farm & Business

level activity

Agricultural macro-

system within

consumer economic

environment

Agriculture supportAgriculture support

Info

rmat

ion

&

Kn

ow

led

ge

man

agem

ent

Info

rmat

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&

Kn

ow

led

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man

agem

ent

Tec

hn

ical

&

advi

sory

ass

ista

nce

Tec

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ass

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Fin

a nc i

al

ass

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Fin

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Tra

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Cap

aci

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bu

ild

ing

Tra

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g &

Cap

aci

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bu

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Mar

keti

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&

Bu

sin

ess

Dev

elo

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Mar

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Bu

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On

& o

ff f

arm

infr

astr

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On

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arm

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6 pillars6 pillars


CASP beneficiaries CASP beneficiaries

Though this group is primarily the responsibility of the

Department of Social Development, they are

supported by the DoA and PDAs through advice and

during food emergencies and crises through the

agricultural food packs and for those families who are

ready, the introduction of agriculture starter pack

(Block 1)

1. The Hungry & Vulnerable


CASP beneficiaries (cont…) CASP beneficiaries (cont…)

Supported through food production and include the

beneficiaries of the Special Programme on Food

Security (SPFS) and the Integrated Food Nutrition

Programme (IFSNP) where the provision of the

agriculture starter pack is made.

(Block 2)

2. Subsistence & Household Food Producers


CASP beneficiaries (cont…)CASP beneficiaries (cont…)

Supported through farm level support and include

beneficiaries of the LRAD and other strategic

programmes, e.g. SLAG, Restitution, Redistribution,

Tenure reform.

(Block 3)

3. Farmers


CASP beneficiaries (cont…) CASP beneficiaries (cont…)

This category includes the agri-business and

entrepreneurs to ensure that business and regulatory

environment is conducive to support agricultural

development and food safety.

(Block 4)

4. Agricultural macro-system within the consumer environment


6 priority areas of CASP 6 priority areas of CASP

Information and Knowledge Management

Technical and Advisory Assistance, and Regulatory

Services

Training and Capacity building

Marketing and Business Development

On-Farm and off-Farm Infrastructure and Production

inputs

Financial assistance


RoleplayersRoleplayers

CASP will be implemented through partnering between:

Department of Agriculture

Provincial Departments of Agriculture

Department of Land Affairs

National Treasury through the Intergovernmental

Fiscal Review

District committee and council

The Beneficiaries

Banking Institutions – The Land Bank

Sector Education and Training Authorities

Other Partners


Intergovernmental Fiscal Review ProcessIntergovernmental Fiscal Review Process

Formation of 10x10 and 4x4

• 4x4: joint technical committee set up to establish

greater coordination on policy development and

budgeting for functions that are a joint responsibility

of national and provincial governments. Reports to

• 10x10: sectoral committee of DoA and National

Treasury

Technical team prioritised CASP

• Identifies spending pressures & cost drivers

• Developed templates to identify targets and budget

for MTEF


CASP Expected OutcomesCASP Expected Outcomes

Increased creation of wealth in agriculture and rural areas

Increased sustainable employment

Increased incomes and increased foreign exchange earnings

Reduced poverty and inequalities in land and enterprise

ownership

Improved farming efficiency

Improved national and household food security

Stable and safe rural communities, reduced levels of crime

and violence, and sustained rural development

Improved investor confidence leading to increased domestic

and foreign investment in agricultural activities and rural

areas

Pride and dignity in agriculture as an occupation and sector


CASP implementation strategy CASP implementation strategy

Three-pronged strategy of :

Aligning support services related to

• Information and knowledge

• Technical and advisory services,

• Training and capacity building,

• Marketing and business development,

Phasing in basic support services related to

• On farm and off farm infrastructure, agricultural inputs,

marketing and business development.

Policy for agricultural financing


Aligning support services Aligning support services

Done through the:

Intergovernmental Fiscal Review

MTEF

Treasury guidelines for measuring service delivery

Setting norms and standards and monitoring systems

Working group has been formed to align extension,

information, advisory services, training


Phasing in basic support servicesPhasing in basic support services

Following priorities have been agreed upon:

Fencing

Water for household food security and food production

Dipping services

Stock handling facilities

Next phase to prioritise production inputs, mechanisation

and marketing and business development


Financing strategyFinancing strategy

President’s SONA announced re-establishment of the ACS; Currently the Department is in the process of examining the

design and will shortly determine a date for public debate; Invite finance team to make presentation


Where are we?

Part 2

Land and Agrarian ReformLand and Agrarian Reform

Comprehensive Agricultural

Support Programme

Land Redistribution for

Agricultural Development

Restitution ProgrammeTenure Reform Programme

Where it is agricultural land

Water ResourcesStrategy

Viable Farming

Enterprises

Agro Tourism Strategy

Agro processing Industries

Household Food Production Programmes

Integrated Food Security and Nutrition Programme


BudgetBudget

An allocation of R 750 million has been made through

the MTEF and implemented through the Division of

Revenue Act (DORA)

R 200 million for 2004

R250 million for 2005

R300 million for 2006


Budget allocation (2004/05) per provinceBudget allocation (2004/05) per province

Province Allocated amount

Eastern Cape R 38 043 000

KwaZulu-Natal R 37 016 000

Limpopo R 33 428 000

North West R 26 875 000

Mpumalanga R 18 903 000

Free State R 16 870 000

Western Cape R 13 765 000

Northern Cape R 10 518 000

Gauteng R 4 582 000


Work in progressWork in progress

Phased in basic support services (fencing, water, dipping

and stock handling)

Finalising guidelines for mechanisation, agricultural

inputs, marketing and business development.

Continue alignment through Intergovernmental Fiscal

Review to populate the template with budget pressure

points as they relate to research & extension services,

training and capacity building information and advisory

services and regulatory services.

Finalise the financing mechanisms for agricultural support

in CASP

Finalise monitoring and reporting systems as per agreed

within DORA


The implementation challengesThe implementation challenges

Working with the provinces – within the context of

concurrency resulted in backlog in implementation of projects

on the ground and utilization;

Limited resources – need to prioritise Restitution

Beneficiaries, LRAD beneficiaries; Communal areas and

resource limited black farmers in general;

Focus in year one – on and off farm infrastructure;

Demand exceeds supply;

Implications of other land reform programmes – sustainability;


Next steps Next steps

Implementation of the Agricultural Research and Extension support services

Alignment of CASP deliverables with other Land and Agrarian Reform Programmes

Alignment of CASP with IFSNP Alignment of CASP with the Financing Strategy Preparing projects for submission for financial year 2005/06

as prioritized by Provinces focused on the other pillars Presented CASP as priority at MTEC and awaiting outcome Community mobilization for ownership of projects

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