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expectations were, i.e., a civil servant who has successfully reached the top of his career can
reasonably be expected to achieve the same level of success in farming but is unlikely to
expect more than a safe income as he is probably not an experienced entrepreneur. Therefore,
if his present income is approximately K8,500.00 with subsidized housing and transport, we
would expect him to be able to command a gross income of K100,000.00 which would allow
him a disposable income of K10,000.00 per annum.
Therefore, if we apply our income criteria to the five types of farming we would recommend
landholding as follows:
|
a. |
Ranching |
500 hectares | |
|
b. |
Mixed farming |
300 hectares |
Average net income |
|
c. |
Dairy |
300 hectares |
K10,000.00 |
|
d. |
Horticulture |
100 hectares | |
|
e. |
Small stock |
20 hectares | |
N.B. Holdings smaller than 20 hectares would not normally be planned for Commercial Sector
Farmers.
6. In respect of traditional farmers there is not much of a problem as they only apply for title
deeds when they need to become commercial. Therefore, the size of holding surveyed for title
deeds will be restricted by the present income of the farmer projected back over the last five
years and a professional estimate of the level that he will achieve over the next 10 years based
upon the size of loan he is likely to get.
7. By far the greatest call on the land is from workers wishing to ensure their future. In the case
of large companies applying for land they are usually encouraged to move to the areas where
they will contribute to the reversal of the rural urban migration. Apart from this provincial
policy, the same formula applies, i.e., the amount of money available for investment is
compiled, along with the borrowing from various sources so that a total investment figure is
available and a program may be involved for a five- or ten-year period of investment plus
development leading to an established expectation of income at the end of this period.
It must be mandatory that all such programs be certified as within the financial resources of
the company concerned, by an independent firm of chartered accountants who will be held
professionally responsible if they mislead the settlement committee. All such costs are naturally
borne by the prospective farmer.
8. In any case, all holdings of more than 2500 hectares of arable land, i.e., 4—5000 hectares
gross, will be presented to Provincial Council for public scrutiny and approved before being
finally recommended for title deeds. Therefore, a company wishing to invest K1,000,000.00
in mixed farming will be calculated as follows:
K1,000,000.00 investment = income 250,000.00
Ranching = 2000 hectares, which includes 500 hectare development allowances
Mixed farming = 1000 hectares
Dairy = 100 hectares
Horticulture = 200 hectares
Small stock = 100 hectares
9. In conclusion we should say that land should be granted in:
a. proportion to the investment expected and income anticipated;
b. the level of competence of the lender;
c. the strategic needs of the province;
d. the demographic expectancy of the area in which the land is granted.