Comprehensive Agriculture Support Programme (CASP)

1
CASP

• Comprehensive Agriculture Support Programme
  (CASP)
• Portfolio Committee presentation
• Department of Agriculture
• 2004

2
Part 1

• What is CASP?

3
Aim 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.

4
CASP 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

5
Policy 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

6
Strategies 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)

7
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.

8
CASP model
Agricultural macro- system within consumer
economic environment
Farm Business level activity
Household food security Subsistence
The Hungry Vulnerable
Agriculture support
6 pillars
Technical advisory assistance
Marketing Business Development
Training Capacity building
Information Knowledge management
On off farm infrastructure
Financial assistance
9
CASP beneficiaries
1. The Hungry Vulnerable
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)
10
CASP beneficiaries (cont)
2. Subsistence Household Food Producers
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)
11
CASP beneficiaries (cont)
3. Farmers
Supported through farm level support and include
beneficiaries of the LRAD and other strategic
programmes, e.g. SLAG, Restitution,
Redistribution, Tenure reform. (Block 3)
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CASP beneficiaries (cont)
4. Agricultural macro-system within the consumer
environment
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)
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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

14
Roleplayers

• 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

15
Intergovernmental 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

16
CASP 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

17
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

18
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

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Phasing 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

20
Financing strategy

• Presidents 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

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Part 2

• Where are we?

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Land and Agrarian Reform
Integrated Food Security and Nutrition Programme
Agro processing Industries
Household Food Production Programmes
Comprehensive Agricultural Support Programme
Viable Farming Enterprises
Land Redistribution for Agricultural Development
Where it is agricultural land
Agro Tourism Strategy
Water Resources Strategy
Restitution Programme Tenure Reform Programme
23
Budget

• 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

24
Budget 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
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Work 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

26
The 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

27
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