BRIEFING NOTE TO THE PORTFOLIO COMMITTEE ON NCERA FARMS DDG:PRM

1. BRIEFING NOTE TO THE PORTFOLIO COMMITTEE ON NCERA FARMS DDG:PRM

2. BACKGROUND State purchased the farms in 1983 /84 in order to implement the Ciskei Independence agreement 1991 former Department of Development Aid through its Development Agent South African Development Trust Corporation (SADT / STK) undertook a planning investigation of Whittlesea Farms better known as Released Area 60 (RA 60) with 14 153.0952ha SADT land. Area Breakdown: 9599.2709ha transferred to Imidushane Tribe under Chief Jongilanga. 1707.0811ha utilised by the Needs Camp Community no longer suitable for agricultural purposes; 136.4545ha settling Lillyvale farm dwellers; 856.9142ha additional for Imidushane Tribe 1844.9663ha making portions from Silverdale, Springvale, Wellcome Home, Flintham, hilltop and Liilyvale as well as the farms Rocklands and Yellowoods were de-proclaimed as SADT land and were transferred to DPW State purchased the farms in 1983 /84 in order to implement the Ciskei Independence agreement

3. BACKGROUND Department of Development Aid and SADTC were disbanded during 1992 SADTC/STK phased out during 1994 through proclamation 111,1994 Area suitable for farmer settlement was 2214.2805ha The then National Department of Agriculture took over the Shareholding of Whittlesea Farms (PTY) LTD The National Department of Agriculture appointed an implementation agent ( Agreement signed in1997) State owned farms are: Rocklands, Silverdale, Springvale, Hilltop, Flintham, Welcome Home , Lillyvale and Yellowwood known as Ncera Farms DAFF is the sole shareholder in Ncera Farms (PTY) LTD 3

4. Background Public entity established in 1990�s SADT (South African Development Trust Corporation managed Ncera from 1984 until 1993 Classified as Schedule B in PFMA (Act of 1999) Managed by Ncera Development Corporation (NADC) until March 2008 on consultation basis Setup to manage land purchased by government from commercial farmers Total area 14000 ha Appointment of Board of Directors for Ncera Farms in 1996 Staff of NADC absorbed by Ncera on April 2008 Board consisted of 5 representative plus farmer representative (6) (3) National,(1) Provincial (1) local and (1) farmers All government representatives resigned in January 2009 In 2009 Mr. Andile Hawes and Mr. Moshe Swart appointed as caretakers 4

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6. ACTIVITIES AT NCERA NCERA CENTRE: Used as a service centre The following services are offered to the farmers who have been settled on Ncera land as well as to the neighbouring communities:Agricultural extension services Land preparation, layout and contract ploughing Training and advice on fresh produce production and marketing Preparation of business plans and financial record keeping Cost effective repairs to and maintenance of agricultural machinery and equipment Postal services and administrative advice Animal husbandry and animal improvement schemes The centre also sells fresh milk to the local communities at a minimum price of R3.50 per litre. The workshop also provides a repair and maintenance service to the community tractors and tractors that belong to the centre. 6

7. ACTIVITIES AT NCERA DAIRY At the end of March 2010: 225 dairy animals. (See page 11 paragraph 2) milk production for the year was 215�726 liters: 161 840 Liters were sold and 53 886 liters was fed to calfs. Three bull calves and thirteen cows re sold. The total income for the dairy was R 806�716 (ref. page 26) At present the heard consist of 207 animals of which 167 are females and 40 males at various ages. Thirty-two males and eight old cows were sold during the Last six month. An average of 49 cows was in milk over the past six months producing 77152 liters. Selling price of milk was 1 to 99 liters � R6.00 and 100 liters and more R 3.50 per later. BEEF At the end of March 2010: 110 head of cattle. (ref.page 11 paragraph 1) nothing was sold during the year (ref.page 25) During the past 6 month 5 old cows and 4 tollies were sold at an auction yielding an Income of R22�690. The heard at present consist 99 animals, 74 female 7

8. ACTIVITIES AT NCERA Contract services Mechanization was done at rates acceptable by the local Department of Agriculture and are as follows: Plough - R610 per ha Disc - R400 per ha Plant - R420 per ha Spray - R300 per ha The total income for the year was R30�545. (See page 24) 8

9. ACTIVITIES AT NCERA In 2005 Ncera farms were disposed of to land reform beneficiaries. Thirteen (13) properties with 2214.2205ha were disposed of for the settlement of farmers One property known as Rocklands with 611.9192ha was reserved to be allocated to farm dwellers. The farms are allocated to 10 beneficiaries, 3 females and 7 males. The allocation is in the form of a permission to occupy the properties. A submission has been made to the Department of Public Works for approval to lease these properties. 9

10. DISPOSAL PROCESS FOLLOWED The Ncera farms are administered by the Directorate: Land Settlement, Department of Agriculture, Forestry and Fisheries, Pretoria, in terms of the State Land Disposal Act, Act 48 of 1961. This act makes provision for the disposal of certain State Land and for matters incidental thereto, and to prohibit the acquisition of State Land by prescription. A total of thirteen (13) properties, consisting of nine (9) economic units were advertised on the Daily Dispatch and the Eastern Province Herald on the 4th and 11th of March 2005 respectively. A total of thirteen (13) properties, consisting of nine (9) economic units were advertised on the Daily Dispatch and the Eastern Province Herald on the 4th and 11th of March 2005 respectively. The interview panel consisted of officials from the Department of Agriculture Forestry and Fisheries (DAFF), Eastern Cape Provincial Department of Agriculture, Eastern Cape Provincial Land Reform Office, National Department of Public Works and Food Allied Workers Union (FAWU). 10

11. Farm sizes & farmers 11