Threats, challenges and opportunities: youth and agriculture

As the Centre for Development and Enterprise (CDE) has set out in its 5-million jobs document, youth excluded from the labour force for long periods are deprived of on-the-job learning opportunities – and no-one learns as fast as youth.

The International Labour Organisation estimates that between 80 to 100 million youth worldwide are unemployed. Prolonged inactivity and a potential growing distrust of political and economic systems do not augur well for a country.

But there is another cloud on the horizon.

We've known for some time that we have an ageing population on our farms. The average age of farmers (and farm workers) is older than it has ever been. Today on 702 Talk Radio we heard that average age of the commercial farmer globally is 54. In South Africa, it is 62!

Imagine the issues that arise from the prospect of there not being sufficient candidates in the next generation to take over producing our food! Omri van Zyl of Deloitte Agribusiness set some of these out:

• Food shortages
• Poverty index rising in a decade or two
• Agriculture’s contribution to the country’s GDO in jeopardy
• Food price inflation
• Having to import what we currently produce ourselves

But let’s go back to the first cloud and look at three statements:

• High levels of unemployment and lack of skills amongst any country’s youth present a threat to that society.  
• High levels of unemployment and lack of skills amongst any country’s youth present a challenge to that society. 
• High levels of unemployment and lack of skills amongst any country’s youth present an opportunity not to be squandered.

Could the high rate of unemployment amongst the youth be an opportunity for agriculture?

What if African governments placed a higher premium on agriculture? As we have said in the youth chapter of The AgriHandbook, Africa relies heavily on agriculture for its GDP (the average is 35%). It makes sense that African heads of state would sign the Maputo Declaration committing to invest 10% of their annual budgets to agricultural development and research. Very few have reached this target. If they don't take agriculture seriously, what chance the youth? 

The private sector would be sure to follow the lead provided by African governments investing in agriculture. Enabling policies, well-functioning markets and support to commercial and small-scale farmers would encourage success – and job creation. And the more the young see a thriving agricultural sector, the more they will be attracted to it.

SA BANDAID FOR RISING WATER CRISIS

“Water security remains one of the most tangible social, political, and economic challenges faced by communities across the globe today,” states South African Local Government Association (SALGA) councillor, Pinky Moloi. 

Here at home we read about it on a regular basis. Residents in certain areas of Johannesburg were left without water for more than three weeks after a recent water crisis in Gauteng areas, with similar reports in the Eastern Cape and Free State, according to an article published on ENCA. In a related article on ENCA, "SA's water crisis - is it worse than you think?", residents of Tsakane in Brakpan, Ekurhuleni, experienced debilitating effects due to water outages, where children were unable to attend school. Water had to be retrieved in buckets for basic functions like washing and drinking from neighbouring areas.Cases like these have been recurring across the country more and more frequently of late with devastating results brought on by droughts and by poor management of the country's water systems and electricity grid.

According to the CEO of the South African Water Research Commission, Dhasen Naidoo, "we have to concentrate on finding ways to re-use and recycle water, six to seven times if possible. We must learn to be water-wise, particularly in areas such as sanitation.”

How does this affect us, and can we rest assured that these processes will be managed more adequately than the track record to date? What short term water solutions are out there to sustain us until systems have been upgraded by the government?

It may be worth your while knowing about something that might be a short-term solution. A water filter of Swiss origin. LifeStraw®water filters convert contaminated water into clean, safe drinking water. This chemical free, ultra-filtration system has undergone rigorous tests internationally and by the SABS and is proven to instantly convert contaminated water into safe drinking water, removing up to 99.9% of bacteria, viruses and protozoan cysts. It also removes turbidity, volatile organic compounds, chlorine and trace chemicals from the water. Products range from those that filter 1000L of contaminated water, right up to the light-weight community unit with four taps which filters 100 000L of water.

Offering a short to long term solution to the problem, hopefully products like these will buy us some time as we face a looming R180 billion rand water infrastructure crisis. The local contact for the products is Aqua4Life. 

Various role players and products are listed in the general Water chapter of The Agri Handbook for South Africa. Water is part of the context in which the agricultural value chain finds itself.  

This article is based on a press release by Red Carpet Concepts. 

And so say all of us!

South Africa's cumulative trade deficit was R71.4-billion [USD 6.2-billion] in 2013. A year later, according to the South African Revenue Service (Sars), it was R95.3-billion [USD 8.3-billion].

We're going in the wrong direction.

So a slight feeling of relief then at the news that in the month of December 2014 the country recorded a trade surplus of R6.9-billion [exports of R87.5-billion and imports of R80.5-billion].

Agriculture does not only feed us; does not only release the rest of the country's citizen's to pursue other jobs (since they can now buy food at the nearest shop); does not only provide fibre for processing and provide for jobs upstream and downstream; does not only provide stability in rural areas; it is also an important earner of foreign exchange.

Included in South Africa's major agricultural exports is citrus fruit, deciduous fruit, wine, subtropical fruit, wool, corn, sunflower seed and oil and raisins.

A toast to agriculture!

Click on the hyperlinked words above to find the overviews of those sectors in The Agri Handbook.

Out in the streets

This afternoon, whilst I was mid-stream checking updates for the "Forage & pastures" chapter in the next Agri Handbook, the power went off.

Step one in such an event is to go stand outside in the street. If you are the only one out there, then proceed with step 2: check the switchboard on your property. If, on the other hand, the neighbours are also on the street, looking up and down you know it is "load shedding", a euphemism indicating a failure of the country's power agency to keep up with the national electricity demand.

The good news is that we have been assured that the country's power problems will be high on the agenda as the ruling party meet for their bi-annual lekgotla (which means something like "brain-storming session"). The bad news is that the secretary general for the ruling party, after saying that other sources of energy were being looked at, adds: “Why are we slow on shale gas for example?"

No, No. NO!

Why are we so slow in implementing the Renewable Energy Power Producer Procurement Programme -- yes! That is a better question and a very good one. But there is every reason to be slow with shale gas. Scan the Ecowatch newsletters which cover environmental issues in the USA where this technology comes from, the real fears of damage to water resources and occasional earthquakes which just happen to accompany fracking.

You consider Ecowatch fringe or "greenies"? Okay. How about the BBC, a comfortable status quo option, which tonight reports that an "influential committee" are calling for a moratorium on fracking. The Guardian, however, tells us that the UK Prime Minister has rejected this. (Follow the link to read about the debate around what threatens to be a top-down approach that will overrule residents on what happens in their own water catchment areas and below the houses in which they reside).

That's got nothing to do with South Africa? Well, Mr Secretary General, then take a listen to local farm lass Jolynn Minnaar. Her documentary Unearthed has drawn international acclaim. Watch the trailer on Youtube or at www.un-earthed.com.

I hope the lekgotla does indeed look at all the options. Water is a far more immediate need than electricity. I fear that if it turns out wrong there will be lots of people in the streets, and they won't just be looking up and down to ascertain if load shedding is taking place.

Environmental challenges mean sustainable farming practices are non-negotiable

A piece written by Zhann Meyer, Head of Agricultural Commodities – Africa Business, Nedbank Capital

According to the 2014 New Climate Economy Report entitled Better Growth, Better Climate, the rate of climate warming across the vast majority of South Africa's agriculturally important regions has accelerated since 2000. When combined with the pressure on land and water resources due to population growth and urbanisation, and the massive degradation of roughly a quarter of the world's agricultural land, the challenges farmers face around the world are immense.

From a climate risk perspective, while it is obviously impossible to predict the weather, commercial farmers have to start planning for the increased possibility of less-than-ideal climatic conditions – and the only way to do that is by embracing sustainable farming practices. 

In the past, when the country enjoyed more predictable weather patterns, farmers might have been able to get away with investing large sums of capital into planting and then simply hoping that the 'weather gods' would be kind to them. These days, however, such an 'invest and hope' approach is almost certainly a fast track to bankruptcy. Instead, a detailed scientific and calculated approach is essential, not only to maximise yields, but also to limit losses. This will allow farmers to maintain good working relationships with the country's financial institutions, which continue to be vital partners in the success of any commercial farming enterprise. 

While entire books could be written about the many sustainable practices modern South African farmers can adopt to mitigate climate and other risks, there are a few non-negotiable components of lasting farming success.

For starters, it is time that every commercial farmer in South Africa accepts the responsibility that he/she has to embrace technology fully, adopt scientific farming practices and understand optimal price hedging structures and varying opportunities in a dynamic environment.

A more scientific approach is especially important for farmers who recognise the imperative to mitigate against the potential for sustained lower rainfall in the future. In this regard investment into technology that helps analyse soil profiles, check pH levels, map moisture levels and limit wastage as a result of planting in suboptimal soils is vital.

Linear steering technology – where a tractor effectively steers itself using satellite tracking and soil profiling to minimise tilling and maximise planting efficiencies – is a prime example of such investment for the highest possible long-term yield. Of course, this is expensive technology, but forward-thinking banks are becoming increasingly open to financing it, provided farmers are able to demonstrate the levels of sustainable planning that can maximise its effectiveness and returns over time.

Apart from the physical act of farming, sustainable farmers also understand the responsibility they have to optimise their financial matters – most significantly the price they can get for their crops. This is best achieved through the third-third-third pricing approach, which is essentially a good way of ensuring that, when it comes to price optimisation, you are right at least two thirds of the time. The approach is essentially this: For a third of your crop do nothing and expose yourself to the vagaries of the market. For the second third hedge your price on the South African Futures Exchange (SAFEX). And, for the final third, hedge by way of buying put options; giving you the right but not the obligation to deliver in a bear market; thus limiting your downside with no cap on the upside.

 This pricing approach is not dissimilar to the widely accepted equity investment approach of diversifying a portfolio. Not only does it afford the farmer the highest, risk-controlled potential for maximum returns, but it also offers real protection against the otherwise financially devastating impact of volatile and unpredictable markets.

The final non-negotiable component of truly sustainable farming is undoubtedly insurance. While it would be unrealistic to recommend that every farmer should hold expensive multi-peril insurance, using the cost of insurance cover for hail as an excuse for not taking out any insurance is a very dangerous approach, particularly given the unpredictable and fast-changing weather patterns that now exist across the country as a result of climate change.

Given the myriad challenges today's farmers face, arguably the most valuable piece of advice about sustainable farming any farmer can take to heart is not to attempt to be the master of all things. It's easy to fall into the trap of trying to be a meteorologist, an agronomist, an HR consultant, a mechanical engineer, a treasurer and everything else your farming operation needs. When you try to juggle so many balls at once, you are bound to drop at least one of them. Rather be prepared to outsource some of these functions to the relevant experts so that you can focus on the core objective of your farming operation, which is, when you come right down to it, to consistently grow the best quality crops with the highest possible yields in the most sustainable manner.

The reader may wish to refer to the following chapters in The Agri Handbook: heading 7 in Climate Change where James Benin some ten years ago researched how farmers were adapting to changing weather patterns; Precision Farming, Conservation Agriculture and Commodity trading. 

Doing it on a tractor

As an 11-year old I would get back from school, wolf down lunch and head out to "the lands" when my father's fleet of tractors was ploughing. It was a delight to the senses: the smell and feel of freshly turned soil; the birds following in the tractors' wake; and once on it, the noise, smell and motion of the tractor.

The trek to the other side of the field lasted an eternity but was a type of nirvana or dream where the only thing that existed was the feel of the wheel in my hands and the day up until that point faded away like an irrelevance.

Perhaps Tractor Girl, Manon Ossevoort, had similar memories and decided to take them to new heights. In one of those follow-your-dream stories, she set out to drive a Massey Ferguson MF 5610 "all the way to the geographical South Pole".

Above : Manon Ossevoort and her team. The photo is from the expedition's website.

 Ossevoort, who hails from the Netherlands, and her back-up team travelled the tough 2 500 km and arrived at their destination last week. They are currently engaged in the return journey. Get updates and more on the expedition at the website http://www.antarcticatwo.com.

Find the Tractors, combines and balers chapter in The Agri Handbook here. Updated statistics on national sales can be found on the South African Agricultural Machinery Association (SAAMA) website.

Farmers, bankers, conservationists (part 3)

Upon arrival at Treetops Farm, we had refreshments and the first of the presentations.

Some of the labour practices on the farm are commendably pragmatic. For example, when a very hot day is forecaste, work begins earlier than normal, and once the assigned tasks are completed the staff go home (this in the late morning!) to avoid the heat.

 A waste management/recycling programme is run with spinoffs for the labour force (a funeral had been paid for from these funds a few days earlier). 

When used, agrochemicals are applied manually for targeted and effective application. Spraying from the air (by airplane or helicopter) can have unintended consequences on beneficial insects like bees and spiders. In addition to sugarcane, Treetops runs a beekeeping operation.

 We heard about various other aspects of operations at the farm, and files showing the paperwork behind the operation were made available to us – training, fertilizer, diesel and so on.

Jessica Cockburn (left) and extension officer Paul Botha introduced SUSFARMS, the Sustainable Sugarcane Farm Management System designed by the South African Sugarcane Research Institute (SASRI) and funded by the WWF. This simple but thorough user guide takes the farmer through a check list of better management practices (BMPs). A farmer using SUSFARMS will find he has complied with legislation whilst maintaining high social, economic and environmental standards.

We set off in convoy to witness some of the features of this farm operation that had won it the Nedbank Sustainable Farm Award in 2014. 

Roy McGladdery (left) demonstrated how vegetated waterways look after the soil. Trees are also being planted in the waterways to provide shelter from the sun and to encourage birdlife.

The 12 checks for waterways in SUSFARMS include: they are not used as roads or paths; they allow the free flow of surface water; they are sited at the lowest point of selected natural depressions, and; they have been planted with a creeping grass suitable to the area.

After one or two more stops on the farm, I looked around and noticed that the magic and inspiration of it all had cast a glow over everyone. One of the Nedbank staff, doing studies in ethics, spoke jubilantly about how she had found a subject for a thesis - to do with labour relations on this farm. McGladdery doesn't look the type who smiles gratuitously but by this time he was all smiles, basking in the joy of sharing with us a farming operation which simply makes such common sense!

There was no immediate rush when all was over, even though there were flights to be caught. People gathered in twos and threes, or in larger groups around McGladdery or the team leaders, content to wait for a while longer before the trips home to Cape Town, Johannesburg, Pretoria - wherever - began.