ENVIRONMENTAL IMPACT ASSESSMENT. for the proposed NATIONAL ROAD 3: KEEVERSFONTEIN TO WARDEN (DE BEERS PASS SECTION) DEA ref. no.

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1 ENVIRONMENTAL IMPACT ASSESSMENT for the proposed NATIONAL ROAD 3: KEEVERSFONTEIN TO WARDEN (DE BEERS PASS SECTION) DEA ref. no. 12/12/20/1992 Agricultural Economic Specialist Report Prepared for Cave Klapwijk and Associates PO Box HATFIELD 0028 Prepared by Duncan Pringle (Pty) Ltd P O Box 1534 HILLCREST 3650 On behalf of SOUTH AFRICAN NATIONAL ROADS AGENCY (SOC) LTD. Date 06/06/2014

2 PROPONENT The South African National Roads Agency (SOC) Ltd is the project proponent who has commissioned this EIA. Contact details are as follows. Proponent South African National Roads Agency (SOC) Ltd Contact Person Ms Mpati Makoa or Mr Ron Harmse Physical address 48 Tamboeti Avenue, Val de Grace, Pretoria, 0184 Postal address PO Box 415 Pretoria 0001 Telephone Fax ENVIRONMENTAL ASSESSMENT PRACTITIONER Consultant Contact Person Physical address Postal address PO Box Telephone Fax Cave Klapwijk and Associates Mr Alan Cave 891 Duncan Street, Brooklyn, Pretoria INDEPENDENT AGRICULTURAL ECONOMIC SPECIALIST Consultant Duncan Pringle Contact Person Duncan Pringle Physical address 10 Hillgate, 13 Highland Road, Hillcrest, 3610 Postal address P O Box 1534, Hillcrest, 3650 Telephone dpringle@andisaagri.com (Pty) Ltd i

3 DECLARATION OF INDEPENDENCE I, Duncan James PRINGLE hereby confirm my independence as a specialist and declare that I do not have any interest, be it business, financial, personal or other, in any proposed activity, application or appeal in respect of which I was appointed as agricultural economic specialist in terms of the National Environmental Management Act, 1998 (Act No. 107 of 1998), other than fair remuneration for worked performed, specifically in connection with the agricultural economic specialist study for the N3: Keeversfontein to Warden (De Beers Pass Section) Environmental Impact Assessment. I further declare that I am confident in the results of the studies undertaken and conclusions drawn as a result of it as is described in my attached report. Signed... Date: (Pty) Ltd ii

4 Executive Summary N3 Toll Concession (Pty) Ltd. (N3TC) is the Concessionaire responsible for the Design, Construction, Financing, Operating and Maintenance of the 415 km section of National Route 3 from Cedara in KwaZulu-Natal to the Heidelberg South Interchange in Gauteng. Included in the Concession Contract is the requirement to construct a new route known as the De Beers Pass Route (DBPR), between Keeversfontein and Warden. As advised by N3TC the completion of DBPR is contractually linked to a traffic volume trigger based on the annual average daily traffic (AADT), which on the basis of current projected growth will not be met. However this is a separate issue to the EIA and for planning purposes the earliest possible commencement date (possible mid 2015) wiith a 3.5-year construction period to be operational in The four route alternatives considered in the agricultural economic report are those of the De Beers Pass Route (DBPR), the De Beers Pass Route Deviations (DBPR Deviations, consisting of Deviation 4, Alexpan and Bucklands Down), Alternate A (consisting of a new pass between Keeversfontein and van Reenen and a new alignment between van Reenen and Harrismith with widening of the existing road from there to Warden) and Alternate C, being the upgrade of the existing N3/R103 to highway standards. The DBPR route and the DBPR with deviations (the deviations are possible alignments to avoid environmentally sensitive areas) has been divided into the following section of analysis: Keeversfontein to the KZN border (DBPR section 1) KZN border to Tandjiesberg (DBPR section 2) Tandjiesberg to Lincoln (DBPR section 3) Lincoln to Warden (DBPR section 4) The Alternative A and C routes have been divided into the following section of analysis: Keeversfontein to the van Reenen Van Reenen to Swinburne Swinburne to 42 nd Hill (Harrismith) Harrismith to Warden The study area is located within the uthukela District Municipality located within KwaZulu- Natal (KZN) and Thabo Mofutsanyne District Municipality of the Free State (FS). The Terms of Reference (TOR) for the study are to: Prepare a report that will assess each route (the De Beers Pass Route, the DBPR Deviations, Alternative A and the Alternative C upgrade of the existing N3) and compare the results, keeping the report describing the outcomes as concise and pertinent as possible. Determine the extent of arable and grazing land affected by the routes, link roads and interchanges. Determine the value of the agricultural land to be lost to each route. Indicate the present value of the crop and arable product loss over 30 years. Identify the secondary industries such as the mills, abattoirs etc that are linked to the primary agricultural industry and draw a conclusion on the possible economic effect when land is removed for the road reserve. Identify which route will have the least impact on the local agricultural economy. In addition the request was made to consider the do nothing alternative for purpose of assessment. (Pty) Ltd iii

5 The methodology applied was to identify the areas of direct influence (ADI) and indirect influence (AII) of the route alternatives. The ADI is the footprint area of the proposed route alternatives (i.e. servitude areas as provided by N3TC along the routes and the farming operations directly affected by the route. The AII refers to the agricultural sector within district municipalities of uthukela and Thabo Mofutsanyane respectively. A literature review was undertaken and data was gathered from inter alia: The scan of issues and responses derived from the various consultation meetings held with interested and affected parties (I&AP) consultation. The draft Social Impact Assessment Report (Dr Neville Bews & Associates, 2010). Face-to-face interviews with landowners and Farmer Association (FA) representatives. Viewing Google Earth maps for an assessment of land use patterns. Sourcing of a list of affected properties for each route from GIS mapping specialist. The Viewing of the municipal valuation rolls for Emnambithi and Phumelelo, however adequate Deeds Registry comparative sales data was obtained and so this source was not interrogated further. A one-day route assessment and background briefing field trip was conducted. Deeds searches, to identify recent land sales within the proposed routes, were conducted. These were on the basis that Deed searches can be carried out in terms of deeds office registration divisions, magisterial areas, municipal areas, farm names, portions or subdivisions Consultations were conducted with chairpersons of Farmers Associations and FA representatives to complete a questionnaire for local content verification. AGIS satellite images, Google earth and cadastre information were intersected with the CSIR data set on land use to indicate land use type and farm cadastre (boundaries). Analysis and assessment of data and results including attention to misleading transactions (too high/too low), adaptations or adjustments (zonings, potential, best use), conditions/circumstances of sale (finance or higher/ lower than normal), market changes (chronological order), location and physical characteristics (size, topography, soil quality, shape/orientation, level of improvements). The following procedure was followed for determining comparable land values: - Property descriptions were obtained from the Deeds office and SANRAL databases, - Maps or Municipal Valuation Rolls, where available - Viewing of topocadastral maps, showing subject properties and immediate areas to gain an understanding of geographic aspects and relationship of properties to the alternate proposed transmission routes, - Telephonic interviews with Property Agents. Reports and information from the Department of Agriculture, both Free State and KwaZulu-Natal. Statistics South Africa (StatsSA) reports. Consultation with Vrystaat Koöperasie Bpk (VKB) and a Nestlé representative. Standard EIA assessment criteria were applied to evaluate the impacts of the route alternatives. In terms of estimating the NPV of the loss in use of land, given the purpose, the discount rate applied in the NPV calculations is the percentage return a farmer, with an investment in land, would expect to receive. The best objective, market indicator of this return is the rental value expressed as a percentage of market value for different classes of property (land uses). (Pty) Ltd iv

6 The selection of the route with least agricultural impact is done on the basis of a ranking based on a composite index calculated for each route. The four most significant dimensions of agricultural impact, based on those derived from the TOR, namely NPV, Processing industry impact, farmer numbers and farm infrastructure impact are weighted in terms of importance. This weighting was done on the basis of professional judgment. Given that NPV captures all future loss values a weighting of 60% was applied, the processing sector in cropping and livestock is nominally affected and a weighting of 10% for each is applied. For farm infrastructure a weighting of 15% is applied based on the count of dams and buildings affected. Farm numbers are weighted at 5% as most of the impact is covered in the NPV weighting. The raw scores for each dimension along each route alternative are then converted to an index on the basis of the lowest raw score being assigned a base index of 100. Each raw score is then indexed relative to the base score. Weighting each resultant index for the four dimensions and summing the result then derives the composite index for the route. Albeit a relatively small contributor to GDP (ranging between 2.7% and 4.2% of total GDP in the period ) agriculture, forestry and fisheries remains a strategically important sector in terms of providing the nation with food and fibre. Conservation of land in SA, where there is good agricultural potential, is important given that the country is not overly endowed with high potential natural resources. SA is classified as a semi-arid country where average rainfall of 450 mm compares with a world average of 850 mm. Only some 13 % of the land may be used for crop production, of which only 22% is highpotential arable land. Some 50% of the water resources in SA are used for irrigation of about 1.3 m ha. KZN has a relatively high agricultural potential when compared with the rest of SA. Some 30.3% is suited to dryland cultivation (S Adey, D Kotze and F Rijkenberg, 2004) with 12.7% being of high potential. Some 15.9% is currently under cultivation. Commercial grazing land accounts for 70% of the commercial farming area, which indicates the importance of stock farming. Farm unit numbers have almost halved (41% decline) in the period between 1993 and This is indicative of significant structural adjustments taking place within the agricultural sector in response to a combination of domestic and foreign agricultural trade policies and other policies that impact agriculture such as labour law and land reform. The trend in employment follows that of commercial farming unit numbers. In the period 1993 to 2002 the decline was 38% for full-time employees and 13% for seasonal workers. Klipriver, the magisterial district through which the N3 passes and considered to be the area of indirect influence for purposes of this study, in 2002 had 118 commercial farmers, with a gross Farming income (GFI) of R 74.9 m (R per farm), current expenditure of R 52 m (R m per farm) and capital expenditure of R 5.7 m (R 48,300 per Farm. Farming debt was R 39.5 m (R per farm). These figures are indicative of an extensive agricultural economy that can sustain only a low level of debt. Agriculture in the FS is the dominant form of land use. Field crops account for about 44% of the gross agricultural income with animal products an additional 46%. A mix of maize, sorghum, dry beans, sunflower and wheat are cultivated in the eastern free State with many farmers specialising in seed production (SAInfo reporter, SA Yearbook). (Pty) Ltd v

7 The existing and proposed routes for the N3 between the border of KZN and Warden pass through the Thabo Mofutsanyne District Municipality and specifically the Maluti a Phong and Phumelela Local Municipalities. There were 320 commercial farmers operating in the district in The dominant cropping enterprises, with the percentage of cropped areas in brackets are maize (60%), dry beans (10%), soya (10%) and wheat (20%). From information collected during interview, representative of about 86% of the ADI, the enterprise mix of the affected agricultural cropping economy is dominated by maize at 67% as per the table below. Area of Direct Influence indicative arable cropping profile Area Yield % Maize 7 545,00 5,9 67,7% Soya 460,00 2,3 4,1% Dry Beans 780,00 1,7 7,0% Wheat 900,00 2,3 8,1% Sunflowers 300,00 2,0 2,7% Barley 40,00 2,0 0,4% Silage 40,00 40,0 0,4% Maize Irr 300,00 2,7% Wheat Irr 500,00 4,5% Potatoes Irr 200,00 1,8% Cabbages 5,00 0,0% Green maize 10,00 40,0 0,1% Apples 66,00 0,6% Total Area ,00 The veld area and associated livestock operations are: Area of Direct Influence livestock resource base Veld Carrying capacity (ha/lsu) Pastures (ha) Veld (ha) Min 100,00 2,00 5,00 Max 5 500,00 3,50 300,00 Average 1 351,39 2,65 104,42 Total , ,00 (Pty) Ltd vi

8 Livestock numbers are: Area of Direct Influence reported livestock numbers Beef Herd size Milking herd Sheep herd Min Max Average Total Average employment levels are 40 ha per employment opportunity. The loss in employment as a consequence of the servitude, measured on a very conservative, worst case scenario will probably be: DBPR (servitude 775 ha) = 19 DBPR Deviations (servitude 761 ha) = 19 Alternate A (servitude 958 ha) = 24 Alternative C (servitude 734 ha) = 18 The estimates refer to the impact of the servitude alone and do not take into consideration any additional impacts in the event SANRAL buy out the whole farm. Comparable sales data was obtained from the Deeds office database for the years January 2008 up to March Suitable comparable sales data was found along the entire routes enabling a realistic opinion of current market related trends along the different alignments and sections. A NPV was conducted on various crop and enterprise options to determine the range in losses. Results are sensitive to assumptions on commodity prices and discount factor applied. In addition, to assess an overall impact given that farming practice normally involve crop rotations the common rotations were applied to the results to determine a weighted average loss. Landowners expressed the view that property prices are changing rapidly and that current market prices are: Landowners expectations of land values Veld Drylands Irrigation OH Irrigation Pivot Min 6 000, , ,00 Max , , ,00 Average 6 291, , , ,00 In addition indicated land rental values in R/ha/annum are shown below. Even removing the outlier high R 400/ha quoted has a negligible impact on the percentage of market value: (Pty) Ltd vii

9 Agricultural land rental values: Veld Drylands Irrigation Pivot Min 150,00 250,00 900,00 Max 400,00 600, ,00 Average 223,46 400, ,00 Values as % of indicated market values 3,6% 4,5% 7,3% Based on the estimated loss in land to the servitude and the percentage share by cropping type the losses estimated to the various industries are estimated. Estimated loss to cropping related agri-industry per route alternative Maize Dry Maize Irr Soya Drybeans Wheat Applied yield (t/ha) 5,9 10 2,3 1,7 2,3 The impact on the milling, feed and bean sector is considered insignificant with not much to choose between routes. In terms of the abattoir sector the impact is also not considered significant. In terms of actual livestock numbers the beef figures equate to approximately 45 to 67 LSUs and in terms of sheep numbers to about 240 to 350 sheep per annum. The DBPR has a marginally bigger impact on the livestock industry when compared to the other two routes. A comparison between the routes and the sections within routes is presented below (Pty) Ltd viii

10 Route Area (ha) Farmer #s Market value (R'm) NPV of loss (R'm) Grain Prodn. loss (t) Livestock prodn. loss (kg) Labour loss Farm infrastructure Buildgs # DBPR Summary R4.46 R , Keeversfontein to KZN Border R 0.69 R , KZN border to Tandjiesberg 73 7 R 0.20 R , Tandjiesberg to Lincoln R 1.05 R , Lincoln to Warden R 2.53 R , De Beers Pass Route - Deviations R4.41 R , Keeversfontein to KZN Border R 0.62 R , KZN border to Tandjiesberg 76 7 R 0.21 R , Tandjiesberg to Lincoln R 1.05 R , Lincoln to Warden R 2.53 R , Alt A Summary accounting for existing N R9.52 R ,441 45, sections Keeversfontein to van Reenen R 0.93 R , Van Reenen to Swinburne R 0.38 R , Swinburne to 42nd Hill (Harrismith) R 1.34 R , nd Hill to Warden R 6.87 R ,222 17, Alt C Summary accounting for existing N R5.43 R ,362 31, Keeversfontein to van Reenen 37 4 R 0.23 R , Van Reenen to Swinburne 89 8 R 0.37 R , Swinburne to 42nd Hill (Harrismith) R 0.81 R , nd Hill to Warden R 4.02 R ,222 17, Positive impact of the DBPR An estimate was made on the potential benefit to farmers along the DBPR on the basis of transportation of agricultural produce. Based on the responses to the questionnaire it is estimated that a total production of 41,462 tons of produce and 15,693 beef and sheep would have to be transported to market. On the assumption that all of this produce would move in a north-south direction and make use of the DBPR some 2,115 trips would be made, which would reduce wear and tear on vehicles using the current gravel roads and would likely improve logistic efficiencies for these farmers. Farm Dams # (Pty) Ltd ix

11 The Processing Dairy in Harrismith felt that neither route would impact their operations. In terms of the do nothing/no go option in the medium to long term the following negative impacts associated with ever-increasing traffic volumes on the same size of road will result. An increase in the incidence of traffic accidents and increased chances for a higher incidence of chemical spills; Increased risks to equipment, vehicles and staff when crossing or entering the road via current farm road access points; Respondents interviewed raised the following issues: 1. Uncontrolled fires 2. Proposed road cuts through 9 worker houses 3. For a four-month period seasonal workers have to be moved across a national road to get to area of operation 4. Theft and increased crime (especially stock theft) 5. Current N3 is a main source of access to farms along the route, without alternatives 6. Movement of large agricultural machinery across roads and underpasses that are inadequately wide 7. Polluted grazing becomes unpalatable 8. Road dissects irrigation sources and in some cases bisects existing farm dams 9. Difficulty in moving livestock across N3 10. Difficulty in operational control and management when staff and resources have to be moved and operated on lands located across a freeway. A number of the issues can be grouped into farming operations for purposes of rating. The impacts identified and the impact scale for each are presented below: 1. Loss in farmland - medium 2. Impact on farming operations - medium 3. Impact on farm infrastructure - medium 4. Fire and fire control - medium 5. Impact on employment - low 6. Impact on agri-industry - low Agriculture is a strategic industry and all attempts should be made to either avoid negative impacts on high potential arable lands and or mitigate negative impacts wherever possible. NPV Losses to the affected landowners are quantified using an aggregation methodology for the purpose of route comparison but remain an estimate. In calculating an individual s loss in potential earnings each case should be taken on merit as management, enterprise mix and pricing scenarios differ between owners. Applying a weighted average index method across a number of key measures of impact in a matrix results in a preference ranking, from least impact to greatest with score in brackets, of DBPR (149), DBPR Deviations (156), Alternate C (163) and Alt A (163), as per the table below. In addition farmers along the DBPR would benefit in terms of transportation of those goods that are moved in a north-south direction. Note the difference between the DBPR and that with deviations is not significant and is based on slightly more stock watering points being affected and a greater value of NPV loss due to more arable and forest land being affected. The measure does not take account of the 1.5 km shorter route of the DBPR with deviations on the transport logistic benefits to users of the road. Measure Weight DBPR DBPR - Deviations Alt. A Alt C: N3 Upgrade (Pty) Ltd x

12 Index Weighted Index Index Weighted Index Index Weighted Index Index Weighted Index NPV (R) 60% Processing industry - Cropping 10% Livestock 10% Affected farmers 5% Farm infrastructure - Dams 5% Buildings 10% Total 100% DBPR Alt. A Alt C: N3 Upgrade Measure Weighting Index Weighte d Index Index Weighte d Index Index Weighte d Index NPV (R) 60% Processing industry - Cropping 10% Livestock 10% Affected farmers 5% Farm infrastructure - Dams 5% , Buildings 10% Total 100% In terms of the do nothing approach in the longer term, with increased traffic the risks to agriculture will increase with the eventual need at a future date being a greater cost. (Pty) Ltd xi

13 TABLE OF CONTENTS 1. INTRODUCTION 1 2. PROJECT DESCRIPTION Sections of analysis De Beers Pass Route (DBPR) De Beers Pass Route (DBPR) with deviations 1, 2, 3, De Beers Pass Route: Alternative A De Beers Pass Route: Alternative C - N3 Upgrade The Study Area 5 3. TERMS OF REFERENCE 5 4. METHODOLOGY Use of existing information Area of Direct Influence Area of Indirect Influence Data collection Impact assessment Degree of confidence in predictions Methodology for determination of Net Present Value of loss in crop and arable product Methodology for ranking selection of routes measures Legal requirements Study assumptions, limitations and knowledge gaps GENERAL DESCRIPTION OF THE AGRICULTURE OF THE STUDY AREA Context KwaZulu-Natal Provincial agricultural description Free State Provincial agricultural description Area of Indirect Influence: uthukela District Municipality Klipriver Magisterial District 18 (Pty) Ltd xii

14 5.5 Area of Indirect Influence: Thabo Mofutsanyne District Municipality Harrismith Magisterial District Area of Direct Influence: Agricultural and land use along the routes LAND VALUES Comparable sales transactions Income Capitalisation Approach Value of improvements Land value in the affected area from market sales data Land value expectations of affected agricultural landowners NET PRESENT VALUE QUANTIFYING THE LOSS IN LAND USE IMPACT ON AGRI PROCESSING THE DO NOTHING/NO GO OPTION DBPR DEVIATION ASSESSMENT Klip River Wilge River Alex Pan Buckland Downs The Gorge SUMMARY OF AGRICULTURAL LOSS IMPACTS SELECTING THE ROUTE OF LEAST IMPACT LEGAL MATTERS Long Term Wayleave Agreement Short Term Way Leave Agreement Road Reserve Planned Developments Access Roads for Private Usage Severed Land Pending legislation ISSUES RAISED 42 (Pty) Ltd xiii

15 15. AGRICULTURAL ECONOMIC IMPACTS Loss in agricultural land and in future revenue streams Farming operations Farm infrastructure Fire and fire break control Employment Impact on agri business IMPACT ASSESSMENT PER SECTION FOR EACH OF THE ROUTE ALTERNATIVES DBPR Section Section Section Section DBPR with Deviations Section Section Section Section Alternative A Section Section Section Section Alternative C Section Section Section Section 4 67 (Pty) Ltd xiv

16 16.5 Do Nothing Section Section Section Section CONCLUSION BIBLIOGRAPHY ANNEXURE A LOCALITY MAP ANNEXURE B FARM BOUNDARIES 1 (Pty) Ltd xv

17 List of Figures Figure 1: Year on year change in Agriculture, forestry and fisheries annual GDP Figure 2: Locality map showing the proposed route alignments List of Tables Table 1: Summary of route alternatives and sections of analysis Table 2: Impact Criteria Assessment and Rating Scales Table 3: Sector contribution to KZN Provincial Gross Farm Income Table 4: Change in KZN Commercial Farm Numbers ( ) Table 5: Change in KZN Agricultural Employment ( )Table 6: Synopsis of the financial position of KZN commercial farmers Table 6: Synopsis of the financial position of KZN commercial farmers Table 7: Financial performance KZN commercial agriculture ( ) Table 8: Synopsis of the financial position of Free State commercial farmers Table 9: Financial performance Free State commercial agriculture ( ) Table 10: Sectoral contribution to Free State provincial Gross Farm income Table 11: Change in Free State commercial farm numbers ( ) Table 12: Change in Free State agricultural employment ( ) Table 13: Area of Direct Influence indicative arable cropping profile Table 14: Area of Direct Influence livestock resource base Table 15: Area of Direct Influence reported livestock numbers Table 16: Area of Direct Influence reported employment levels (Pty) Ltd xvi

18 Table 17: DBPR Keeversfontein to KZN Border Keeversfontein to KZN Border R/ha Ha Boschfontein 2, Doornkraal 5, Average 3,725 1,132 Table 18: DBPR - KZN Border to Tandjiesberg KZN Border to Tandjiesberg R/ha Ha Bloemhoek 1,760 1,477 Brakwal 4, Average R/ha 2,700 2,170 Table 19: DBPR / DBPR Deviations - Tandjiesberg to Lincoln Table 20: DBPR / DBPR Deviations - Lincoln to Warden Table 21: Route Alternate A & C - Keeversfontein to van Reenen Table 22: Route Alternate A & C - van Reenen to Swinburne Table 23: Route Alternate A & C Swinburne to 42 nd HillTable 24: Route Alternate A & C 42 nd Hill to Warden Table 24: Route Alternate A & C 42 nd Hill to Warden Table 25: Summary of comparison of value of land take Table 26: Landowners expectations of land values Table 27: Agricultural land rental values Table 28: NPV of loss for differing enterprise types under appropriate commodity price regimes Table 29: NPV of loss for typical summer/winter cropping regime under different commodity price regimes Table 30: NPV of loss of typical summer crop rotation system Table 31: Weighted average NPV of loss based on sub-regional cropping mix Table 32: Average NPV loss for arable land based on the survey results for the Area of Direct Influence Table 33: Average NPV loss for veld based on cattle and sheep as dominant enterprises from the survey results for the Area of Direct Influence Table 34: Estimated loss to cropping related agri-industry per route alternative Table 35: Estimated loss to livestock agri-industry per route alternative (Pty) Ltd xvii

19 Table 36: Summary of DBPR servitude value of agricultural land take per section land use Table 37: Summary of DBPR Deviation servitude value of agricultural land take per section land use Table 38: Summary of Route Alternate A servitude value of agricultural land take per land use without considering the existing N3 i.e. considered like for like as a new road Table 39: Summary of Route Alternate C servitude value of agricultural land take per land use taking account of the existing N3 Table 40: Summary of agricultural impacts across all routes and sections (Pty) Ltd xviii

20 Table 41: Raw scores and indexes for route comparison that with the greatest negative agricultural impact. Table 42: Assessment of least impact route from an agricultural economic perspective (Pty) Ltd xix

21 Acronyms AADT Annual average daily traffic ADI Area of direct influence AGIS Agricultural Geo-referencing Information System AII Area of indirect influence AU Animal Unit equivalent to an animal of 450kg BID Background information document BRG Bioresource Group a grouping of Bioresource Units (an area where environmental, soil and terrain conditions are sufficiently similar to allow for uniform recommendations on land use and farm practice) into ecological units based primarily on climate and vegetation. CKA Cave, Klapwijk and Associates CSIR Council for Scientific and Industrial Research DAE&RD KwaZulu-Natal Department of Agriculture, Environment and Rural Development DBPR De Beers Pass Route DC19 Thabo Mofutsanyane District Municipality DC23 uthukela District Municipality DEA Department of Environmental Affairs DM District Municipality ECDC Eastern Cape Development Corporation EIA Environmental Impact Assessment FS Free State FS194 Maluti a Phofong Local Municipality FS195 Phumelela Local Municipality GDP Gross Domestic Product GDPR Regional (Provincial) Gross Domestic Product GFI Gross Farm Income ha Hectare 10,000 m 2, about equivalent to 2 soccer fields I&AP Interested and Affected Party IDP Integrated Development Plan IFAD International Fund For Agricultural Development kg Kilogram KZN KwaZulu-Natal KZN232 Emnambithi-Ladysmith Local Municipality LM Local Municipality m Million masl Metres above sea level mm Millimetre NPBT Net profit before tax N3 National Road 3 N3TC NS Toll Concession (Pty) Ltd NPV Net Present Value RLI Route location initiative ROD Record of Decision SA South Africa SANRAL South African National Roads Agency Limited SA South Africa TOR Terms of Reference VKB Vrystaat Koöperasie Beperk (Pty) Ltd xx

22 Consultant Contact Person Physical Address Details and Experience of independent Consultant (Pty) Ltd Duncan Pringle 10 Hillgate, 13 Highland Road, HILLCREST, 3610 Postal Address P O Box 1534, HILLCREST, 3650 Telephone Mobile Fax Website dpringle@andisaagri.com Duncan Pringle has extensive experience as an agricultural economist and is experienced in agricultural development planning, land reform, agricultural finance, micro finance and financial products, agricultural economic and environmental assessments, project planning, business strategy and financial modelling of business operations and value chain analysis. His career includes appointments within the South African Development Finance sector and has completed many assignments in Southern Africa. Assignments in the field of EIA agricultural economic studies include the Dube TradePort King Shaka International Airport, the KSIA AgriZone, the 180 km Venus-Sigma-Hector- Ariadne Eskom Transmission line and for the 15,000 ha Makhathini Sugar Cane Project. He has also conducted a peer review of the specialist report on the land potential and economic impact assessment for the 178 km Ariadne-Eros Eskom Transmission line. He has undertaken assignments in Zimbabwe, South Africa, Swaziland, Tanzania and Zambia, with study tours to Zambia and Malawi. Clients include, IFAD, Mondi Business Paper, Tongaat Hulett Developments, Institute for Natural Resources, ECDC/Magwa Tea, CDE, National Department of Agriculture, KwaZulu- Natal Departments of Agriculture, Economic Development and Trade and Investments KZN, Eskom and ACER Africa Environmental Consultants. Duncan Pringle was assisted in the field by Danie Jordaan and Matt Williams: Danie Jordaan is an agricultural economist with particular expertise in agribusiness, market analysis, feasibility assessments, business modeling and supply chain analysis. He has held assignments with an international agribusiness development company, operating across ten countries in Africa, as expert witness for a number of attorneys and as researcher for universities and private companies. Matt Williams is an experienced agriculturalist and agricultural property agent with additional experience in EIA processes. He holds a National Diploma in Agriculture, is a registered Estate Agent and is currently qualifying in property valuation. He is experienced in EIA assignments, having undertaken training in the field and worked with SASA in land use planning and wetland delineation. In addition he has conducted many feasibility assessments in the agribusiness environment. (Pty) Ltd xxi

23 Declaration of Consultant s Independence Messers D J Pringle, D D Jordaan and M A Williams of are independent consultants to the N3 Toll Concession (Pty) Ltd and have no business, financial, personal or other interest in the activity, application or appeal in respect of which they have been appointed other than fair remuneration for work performed in connection with the activity, application or appeal. There are no circumstances whatsoever that compromise the objectivity of these specialists performing such work. (Pty) Ltd xxii

24 1. INTRODUCTION Following a public tender process, the South African National Roads Agency Ltd (SANRAL) appointed the N3 Toll Concession (Pty) Ltd. (N3TC) as the Concessionaire responsible for the Design, Construction, Financing, Operating and Maintenance of a portion of National Route 3 from Cedara in KwaZulu-Natal to the Heidelberg South Interchange in Gauteng as a Toll Highway with Developments and Associated Facilities. This 415-kilometre section of the N3 is referred to as the N3 Toll Route. The concession is for a thirty-year period that commenced on 2 November Included in the Concession Contract is the requirement to construct a new De Beers Pass Route (DBPR), between Keeversfontein and Warden. N3TC obtained environmental approval subject to certain conditions, by means of a Record of Decision (ROD), issued on 26 March 1999, authorising the construction and upgrading of the N3 Toll Road System from Heidelberg to Cedara, comprising of the routes, (i) Cedara to Heidelberg (via Van Reenen) and (ii) Keeversfontein to Warden (De Beers Pass Route). In order to comply with the conditions, N3TC embarked on an analysis process to compare alternative alignments with the DBPR. During this process, N3TC established through the use of new road design software, an alternative geometrically compliant route in the vicinity of the existing Van Reenen s Pass, with various alternatives to re-join the DBPR at appropriate positions, in addition to which an alternative route up the escarpment near De Beers Pass, avoiding the need for a tunnel and sensitive areas along the DBPR was also identified. A comparison of environmental impacts is thus required. N3TC initiated the formal EIA process, and to conform to new legislation. In this regard N3TC, on 23 July 2010 submitted an EIA Application to the National Department of Environmental Affairs (DEA) for the construction of the National Road 3: Keeversfontein to Warden (De Beers Pass Section). Subsequently the Scoping Report for the alternatives was submitted and on its approval (circa April 2011), DEA required that the upgrade of the existing N3 be assessed as a third alternative, namely Alternate C. In addition deviations along the DBPR and a significant deviation referred to as Deviation 4 has also been identified. 2. PROJECT DESCRIPTION The route alignment alternatives included in this EIA process are: De Beers Pass Route (DBPR) as the base case Alternative A Another option was added by the authorities at the approval of the Scoping Report (SR), namely the upgrade of the existing N3 route: Alternative C. The final option is the do nothing one. Further to the identification of possible route deviations from the DBPR to avoid sensitive areas as identified by specialists, these deviations have also been assessed and included in the report. These deviations to the DBPR are: Klip river, deviation 1

25 Wilge river, deviation 2 Alex Pan, deviation 3 Buckland Downs Gorge Deviation (deviation 4) The De Beers Pass Route: Alternative B, originally considered in the Scoping phase has been excluded from the EIA study as motivated in the approved Scoping Report. 2.1 Sections of analysis The DBPR route and the DBPR with deviations has been divided into the following section of analysis: Keeversfontein to the KZN border (DBPR section 1) KZN border to Tandjiesberg (DBPR section 2) Tandjiesberg to Lincoln (DBPR section 3) Lincoln to Warden (DBPR section 4) The Alternative A and C routes have been divided into the following section of analysis: Keeversfontein to the van Reenen Van Reenen to Swinburne Swinburne to 42 nd Hill (Harrismith) Harrismith to Warden Refer to Annexure A: Locality map for the proposed alternative route alignments. A table summarising the alternatives and the route sections for analysis are presented in Table 1 below. Table 1: Summary of route alternatives and sections of analysis Route Alternative DBPR DBPR with Deviations Alternative A Alternative C Do Nothing. (Existing N3) Section 1 Section 2 Section 3 Section 4 Keeversfontein to KZN border Keeversfontein to KZN border (gorge deviation Dev.4 & Klip River Dev 1) Keeversfontein to Van Reenen Keeversfontein to Van Reenen Keeversfontein to Van Reenen KZN border to Tantjiesberg KZN border to Tantjiesberg (Wilge R Dev 2 and Alex Pan Dev 3) Van Reenen to Swinburne Van Reenen to Swinburne Van Reenen to Swinburne Tantjiesberg to Lincoln IC Tantjiesberg to Lincoln IC Swinburne to 42 nd Hill Swinburne to 42 nd Hill Swinburne to 42 nd Hill Lincoln IC to Warden Lincoln IC to Warden (Buckland Downs adjustment) 42 nd Hill to Warden 42 nd Hill to Warden 42 nd Hill to Warden A description of each route alignment is provided below. 2

26 2.2 De Beers Pass Route (DBPR) This proclaimed DBPR runs from Keeversfontein (Tugela Toll Plaza) via the De Beers Pass area to Warden. The route branches off the current N3 just north of the Tugela Toll Plaza. The route reaches the top of the KwaZulu-Natal escarpment where it passes through a tunnel approximately 500m in length and then goes around the top edge of a gorge before entering the Free State. A wetland associated with the Wilge River is crossed and the alignment then runs close to the Wilge River before the road climbs to the more even plateau of the Free State Highveld. The Wilge, Meul and Cornelis Rivers are crossed before the DBPR re-joins the existing N3 just north of Warden, where a Toll Plaza is proposed. The total length of this route as supplied by N3TC is km. There have been some possible deviations, as mitigation to avoid sensitive natural areas, identified for this route, namely: Klip River, deviation 1 Wilge River, deviation 2 Alex Pan, deviation 3 Gorge, deviation 4 Lincoln Pan Buckland Downs The latter two are an alignment to the east to provide additional space and to avoid an oak grove. An assessment was made in May 2012 of the DBPR with these deviations and it was found that there was no significant difference in comparison with the original DBPR The New DBPR (i.e. original route with deviations 1, 2, 3 and Buckland Downs) route remained the least impact followed by Alt. C and Alt. A that with the greatest negative agricultural impact. The servitude width applied to the whole route for purposes of assessment is 80 m. 2.3 De Beers Pass Route (DBPR) with deviations 1, 2, 3, 4 The routing of the Gorge deviation (deviation 4) is such that the route avoids the small Klip River (i.e. the alternative deviation 4 - Gorge route veers to the west of the original proposed DBPR route before deviation 1) and Wilge deviations (i.e. the deviation 4 - Gorge route is located to the west of the Wilge wetland area to avoid it as would the deviation 2) of the original DBPR and hence these two are not included on the deviation 4 Gorge route assessment. Wilge River (deviation 1) There are two alternate deviations proposed, one has an impact of adding km of additional distance to the route and the other km. This is an area of 0.3 ha and 4.7 ha respectively classified as unimproved grassland. Alex Pan (deviation 2) 3

27 The additional length of the deviation to the original route is km, resulting in an additional 0.92 ha of land lost to servitude, all classified as cultivated. Buckland Downs The additional length of the deviation to the original route is km, resulting in an additional 0.92 ha of land lost to servitude, all classified as cultivated. Deviation 4 The reduced length of the deviation to the original route is 1.19 km, resulting in a reduced 15ha land take due to servitudes, all classified as unimproved grassland. 2.4 De Beers Pass Route: Alternative A This route up the escarpment starts just north of the Tugela Toll Plaza (Keeversfontein) and runs for a short distance almost parallel to and east of the existing N3 Van Reenen s Pass. The route then follows the landform ridges and reaches the crest of the escarpment through a saddle immediately south of Van Reenen Village. Just north of Van Reenen village an interchange will connect with the existing N3. The route continues in a northwesterly direction to intersect the N3 in the Swinburne area. The route will then deviate to the north and connects with the existing N3 at an interchange before continuing across the slopes of Platberg Mountain to an interchange north of Harrismith near 42 nd Hill. From this point the the existing N3 route will be widened to Warden, where a Toll Plaza is proposed. The Wilge River is crossed at Swinburne and the Meul and Cornelis Rivers will be crossed at the same points they as the existing N3. The total length of this route as per N3TC is km. The servitude widths for this route are, 80 m servitude from Keeversfontein to the proposed Interchange just north of Harrismith based on 40 m each side of the centre line. From the Interchange at 42 nd Hill to Warden along the existing N3, the servitude is 80 m with the expansion of the existing servitude to the east of the road only. Access road servitudes provided for are 20 m. 2.5 De Beers Pass Route: Alternative C - N3 Upgrade This route up the escarpment starts just north of the Tugela Toll Plaza and runs along the existing N3 up van Reenen s Pass to Harrismith but with considerable widening of the existing servitude to accommodate the re-alignment of the existing route between the Tugela Toll Plaza and Harrismith. This is because the construction will likely involve extensive cut and fill for gradient and curve changes and deviations to accommodate existing traffic and make provision for service roads for agricultural equipment. On the rise just north of Harrismith (42 nd Hill) the road will be cut further into the hillside. From this point the route will follow the existing N3 closely to Warden, where a Toll Plaza is proposed. The Wilge River is crossed at Swinburne and the Meul and Cornelis Rivers will be crossed at the same points they are crossed by the existing N3. The design envisages widening the both sides of the road between Keeversfontein and Harrismith, whilst the section between Harrismith and Warden will be widened to the east. The total length of this route as per N3TC is km. 4

28 The servitude widths used in the study are 400 m (200 m each side of the centre line) between Tugela Toll Plaza (Keeversfontein) and van Reenen and 200 m (100 m each side of the centre line) between van Reenen and Harrismith. However once operational the final road reserve is anticipated to be 80 m 100 m depending on the terrain and the lane accommodation. From just north of Harrismith to a proposed Interchange just north of Harrismith the buffer is 80 m (40 m each side of the centre line) and from the Interchange along the existing N3 80 m with the expansion of the existing servitude to the east of the road only. Access road servitudes provided for are 20 m. 2.6 The Study Area The area affected by the project is divided into a number of District and Local Municipalities: Free State: Thabo Mofutsanyne District Municipality o Phumelela Local Municipality o Maluti a Phong Local Municipality KwaZulu-Natal: UThukela District Municipality o Emnambithi Ladysmith Local Municipality o Okhahlamba Local Municipality o Indaka Local Municipality o Umtshezi Local Municipality o Imbabazane Local Municipality For purposes of the agricultural assessment and use of StatsSA data the two magisterial districts (one each from FS and KZN) that are the areas of indirect influence (AII) are Harrismith and Klipriver respectively. 3. TERMS OF REFERENCE The Terms of Reference (TOR) for the study are to: Prepare a report that will assess each route (the De Beers Pass Route, the DBPR with deviations, the DBPR Alternative A and the Alternative C upgrade of the existing N3) and compare the results, keeping the report describing the outcomes as concise and pertinent as possible. Determine the extent of arable and grazing land affected by the routes, link roads and interchanges. Determine the value of the agricultural land to be lost to each route. Indicate the present value of the crop and arable product loss over 30 years. Identify the secondary industries such as the mills, abattoirs etc that are linked to the primary agricultural industry and draw a conclusion on the possible economic effect when land is removed for the road reserve. 5

29 Identify which route will have the least impact on the local agricultural economy. In addition the request was made to consider the do nothing alternative for purpose of assessment. A comparative route section analysis was included later to compare the four route sections of each of the four routes. 4. METHODOLOGY 4.1 Use of existing information A literature review and desktop study was undertaken of existing information to collate relevant information and assess gaps in knowledge. The reports include the BID, the Final Scoping Report, the Comments and Response Report from the public participation process and the draft Social Impact Assessment. A briefing meeting and site visit took place on the 13 th December 2010 for orientation. The areas of direct influence (ADI) and indirect influence (AII) of the route alternatives were identified. 4.2 Area of Direct Influence The ADI refers to the footprint area of the proposed route alternatives (i.e. the 80 m servitude area for the national road, plus sections of a 400 m servitude up the van Reenen pass and 200 m servitude between van Reenen and Harrismith for Alt C and 20 m servitudes for the indicated access roads) and the farming operations directly affected by the route. 4.3 Area of Indirect Influence The area of indirect influence (AII) covers the district municipalities of uthukela and Thabo Mofutsanyane in the provinces of KwaZulu-Natal (KZN) and Free State (FS) respectively. 4.4 Data collection Data was gathered from inter alia: The scan of issues and responses derived from the various interested and affected party (I&AP) consultation process. The draft Social Impact Assessment Report (Dr Neville Bews & Associates, 2010). Face-to-face interviews with landowners and Farmer Association (FA) representatives. Viewing Google Earth maps for an assessment of land use patterns. Sourcing of a list of affected properties for each route from GIS mapping specialist. Information on the municipal valuation rolls of Emnambithi and Phumelela were sourced but not utilised as the Deeds Registry information on market transactions was deemed more appropriate. A one-day route assessment field trip was conducted to ground truth GIS and map features and land use of the respective routes 6

30 Deeds searches, to identify recent land sales within the proposed routes, were conducted. These were on the basis that Deed searches can be carried out in terms of deeds office registration divisions, magisterial areas, municipal areas, farm names, portions or subdivisions Consultations were conducted with chairpersons of Farmers Associations and FA representatives to complete a questionnaire for local content verification. AGIS satellite images were viewed to indicate land use type and farm cadastre (boundaries). Analysis and assessment of data and results including attention to misleading transactions (too high/too low), adaptations or adjustments (zonings, potential, best use), conditions/circumstances of sale (finance or higher/ lower than normal), market changes (chronological order), location and physical characteristics (size, topography, soil quality, shape/orientation, level of improvements). The following procedure was followed for determining comparable land values: - Property descriptions were obtained from the Deeds office and SANRAL databases, - Maps or Municipal Valuation Rolls, where available, - Viewing of topocadastral maps, showing subject properties and immediate areas to gain an understanding of geographic aspects and relationship of properties to the alternate proposed transmission routes, - Telephonic interviews with Property Agents. Reports and information from the Department of Agriculture, both Free State and KwaZulu-Natal. Statistics South Africa (StatsSA) reports. Consultation with Vrystaat Koöperasie Bpk (VKB) and Nestlé a representative. 4.5 Impact assessment The assessment criteria used to evaluate the impacts of the various route alternatives are provided below. Table 2: Impact Criteria Assessment and Rating Scales Criteria Nature Extent or scale Duration Rating Scales Positive Negative Neutral Low Medium High Low Medium High Notes This is an evaluation of the type of effect the construction, operation and management of the proposed development would have on the affected environment. Site-specific, affects only the development footprint. Local (limited to the site and its immediate surroundings, including the surrounding towns and settlements within a 10 km radius); Regional (beyond a 10 km radius) to national. 0-4 years (i.e. duration of construction phase) years. More than 10 years to permanent. 7

31 Criteria Intensity Potential for impact on irreplaceable resources Consequence (a combination of extent, duration, intensity and the potential for impact on irreplaceable resources). Probability (the likelihood of the impact occurring) Significance (all impacts including potential cumulative impacts) Rating Scales Low Medium High Low Medium High Low Medium High Low Medium High Low Medium High Notes Where the impact affects the environment in such a way that natural, cultural and social functions and processes are minimally affected. Where the affected environment is altered but natural, cultural and social functions and processes continue albeit in a modified way; and valued, important, sensitive or vulnerable systems or communities are negatively affected. Where natural, cultural or social functions and processes are altered to the extent that the impact will temporarily or permanently cease; and valued, important, sensitive or vulnerable systems or communities are substantially affected. No irreplaceable resources will be impacted. Resources that will be impacted can be replaced, with effort. There is no potential for replacing a particular vulnerable resource that will be impacted. A combination of any of the following: - Intensity, duration, extent and impact on irreplaceable resources are all rated low. - Intensity is low and up to two of the other criteria are rated medium. - Intensity is medium and all three other criteria are rated low. Intensity is medium and at least two of the other criteria are rated medium. Intensity and impact on irreplaceable resources are rated high, with any combination of extent and duration. Intensity is rated high, with all of the other criteria being rated medium or higher. It is highly unlikely or less than 50 % likely that an impact will occur. It is between 50 and 70 % certain that the impact will occur. It is more than 75 % certain that the impact will occur or it is definite that the impact will occur. Low consequence and low probability. Low consequence and medium probability. Low consequence and high probability. Medium consequence and low probability. Medium consequence and medium probability. Medium consequence and high probability. High consequence and low probability. High consequence and medium probability. High consequence and high probability. 8

32 4.6 Degree of confidence in predictions In addition to the impact assessment, based on the available information and our level of knowledge and expertise, an indication of the degree of confidence in the predictions, has been made based on the following criteria: High; > 70% sure of impact Medium; Between 35% - 70% sure of impact Low; < 35% sure of impact Note the degree of confidence assigned has not been taken into account in the determination of consequence or probability in terms of DEA guidelines. 4.7 Methodology for determination of Net Present Value of loss in crop and arable product The client specified the use of Net Present Value (NPV) as a method of determining the loss of the crop and arable product to be measured over a 30-year period. The analysis has also included the loss in livestock products as a measure of the loss in use of veld grazing. Used in this manner the result is not recommended for direct application to determine the market value of land. The Income Capitalisation method, discussed in the section on land values is one of the three approaches to land valuation and uses some of the concepts applied in NPV. Note that an investment in land has a cash return component through land use but also an investment return through capital gain derived from holding land over time. NPV is defined as the sum of the present values of the individual incoming and outgoing cash flows (Wikipedia, 2011). Each cash flow is discounted to present value using a discount rate, with the initial investment in the initial year already at its present value. The discount rate is a measure of risk and reward and the determination of the discount rate to be applied is key. The selection of a discount rate is dependent on the use to which it will be put. By way of example, if a business is wanting to assess whether an investment in production capacity will add value, the weighted average cost of capital (WACC) is recommended as the discount rate to be applied, if the business is required to achieve a minimum rate of return, then that rate should be applied to assess if the NPV is positive or not and hence whether the investment is justified. In the current application, given the purpose, the discount rate applied in the NPV calculations is the percentage return a farmer, with an investment in land, would expect to receive. The best objective, market indicator of this return is the rental value expressed as a percentage of market value for different classes of property (land uses), i.e.: - Discount rate = Annual rental / Market value x 100 (i.e. expressed as a percentage) 9

33 When using the NPV technique for purposes of determining whether an investment will yield a positive return it is usual to include the initial investment required (in the case of assessing an investment in land it would be the purchase price of the land) as a net outflow in year 0 (the initial year). In this case the value of land is excluded on the basis that the purpose is to determine the loss in future revenue at current values and not for purposes of assessment of the merit in investment in land. 4.8 Methodology for ranking selection of routes The selection of the route with least agricultural impact is done on the basis of a ranking based on a composite index calculated for each route. The four most significant dimensions of agricultural impact, based on those derived from the TOR, namely NPV, Processing industry impact, farmer numbers and farm infrastructure impact are weighted in terms of importance. This weighting was done on the basis of professional judgment based on a subjective assessment of relative importance. Given that NPV captures all future loss values a weighting of 60% was applied. The processing sector in cropping and livestock is nominally affected and a weighting of 10% for each is applied. For farm infrastructure a weighting of 15% is applied based on the count of dams and buildings affected. Farm numbers are weighted at 5% as most of the impact is covered in the NPV weighting. The raw scores for each dimension along each route alternative are then converted to an index on the basis of the lowest raw score being assigned a base index of 100. Each raw score is then indexed relative to the base score. Weighting each resultant index for the four dimensions and summing the result then derives the composite index for the route. 4.9 measures measures have been identified to reduce the consequence or probability of an impact, or to reduce both consequence and probability. The significance of impacts has been assessed both with mitigation and without mitigation Legal requirements The key laws, policies, guidelines and planning documents that pertain to the agricultural economic assessment together with an explanation of the relevant implications and requirements for the project are provided. The relevant permit requirements pertaining to the development proposals have been listed where relevant. Where appropriate reference has been provided to the procedures required to obtain permits and a description provided as to whether the development proposals have the potential to trigger applicable licensing or permit requirements Study assumptions, limitations and knowledge gaps The study has the following limitations and knowledge gaps: - 10

34 The study includes information on property transactions and rental values historically and currently (2011) applied in the study area for the purpose of making an assessment of the impact of the routes and for comparison between route alternatives. The information therefore has limitations in applicability in determining property specific valuations and in all such cases where a property valuation is required appropriate property valuation methodologies should apply, especially if there is a passage of time in resolving which route is preferred and any resolution on compensation for land take. In determining NPV of potential losses the information has the following limitations. Average yields and productivity levels; assessed from a variety of credible sources have been applied across reasonably homogenous areas. By the nature of agricultural production, with variability in the natural resource potential, management expertise, capital and farm systems, results will be different at individual farm level. The model developed is considered sufficiently robust for purposes of overall agricultural economic impact and route comparison but may not be sufficiently accurate at farm level for purposes of individual compensation negotiation. In addition the relative relationship between revenue and costs has a large influence on the NPV. As such two scenarios for the major commodities were followed in terms of pricing. One was to apply the VKB budget prices and the other the SAFEX price as at 25 March In reality due to fluctuations in the relationship between commodity prices (both product and inputs) and the long-term outlook NPV values calculated in different periods will provide differing results. Information from the Deeds Registry was secured to determine the general values of properties transacted in recent years within the study area. Deeds office records make provision for the transaction value but in a number of transactions and especially those where the state is the title deed holder the values have not been recorded. In addition the use of the values provided is useful for indicating general levels of property values for route comparison purposes but again not for determining value for an individual property, as they may not be directly comparable. Andisa are not legal experts and information provided on legal matters are provided as is based on information sourced and without any warranty and any party should consult their own legal advisors where required. On the Alt. A and Alt. C routes, there are a small number of cadastre information gaps on a number of properties. However these appear to be in the main the smaller urban properties or small servitudes that are in the process of being transferred into SANRAL s name, which should not have any impact on the findings on the agricultural economic issues. The information from StatsSA has certain limitations in that the most recent data is 2007, with some data on district level farm numbers only being available in The farmers in the Swinburne and van Reenen area were reluctant to provide responses to the questionnaire on the basis of their unhappiness with the repeated information requests they have received of late from various public sector institutions looking to route services and infrastructure through the area. Reliance was placed on the AGIS and CSIR information sources for evidence of land use. 11

35 The consultant has applied the normal care and diligence associated with such assessments in the compilation of the information in this report. All conclusions contained herein are believed by the author to be as accurate as the data and methodologies will allow. However, because of the possibilities of human and mechanical error, as well as other factors such as unforeseen and unforeseeable changes in political, economic and social circumstances beyond the author s control, the information herein is provided "as is" without warranty of any kind and has not been independently verified by the consultant or any other person. 5. GENERAL DESCRIPTION OF THE AGRICULTURE OF THE STUDY AREA 5.1 Context Albeit a relatively small contributor to GDP (ranging between 2.7% and 4.2% of total GDP in the period ) agriculture, forestry and fisheries remains a strategically important sector in terms of providing the nation with food and fibre. A country not able to achieve a position of being able to feed and clothe its people is vulnerable to social instability in the event of international shocks in the world economy and to disruptions in international food reserves, resulting in either a sharp increase in food prices and/or shortages in food. Conservation of land in SA, where there is good agricultural potential, is important given that the country is not overly endowed with high potential natural resources. SA is classified as a semi-arid country where average rainfall of 450 mm compares with a world average of 850 mm. Only some 13 % of the land may be used for crop production, of which only 22% is highpotential arable land. Some 50% of the water resources in SA are used for irrigation of about 1.3 m ha. It is therefore testimony to the productivity of the agricultural sector that SA enjoys the position of being among the top five exporters of avocados, grapefruit, tangerines, plums, pears, viticulture and ostrich products. The largest export commodities are wine, citrus, sugar, grapes, maize, fruit juice, wool and deciduous fruit. (SAInform). In response to changes in agricultural policy both locally and internationally, international competition and the economics of farming, the sector is undergoing structural adjustments. These adjustments are resulting in a reduction in farm numbers and employment as scale economies are pursued. In addition the business environment is extremely variable due to variability in climatic conditions and fluctuations in commodity prices. This is shown in the graph below, illustrating the fluctuation in percentage change in GDP for the agriculture, sector. At the extreme the sector has experienced a fluctuation in two consecutive years of a negative 20% followed by a positive 24%. 12

36 Percentage change in GDP at constant 2005 prices N3: De Beers Pass Section Agricultural Economic Specialist Study June 2014 FINAL REPORT Agriculture, forestry and fishing Year Agriculture, forestry and fishing Figure 1: Year on year change in Agriculture, forestry and fisheries annual GDP 5.2 KwaZulu-Natal Provincial agricultural description The total area of KZN is m ha of which 4.09 m ha is classified as commercial agricultural. KZN has a relatively high agricultural potential when compared with the rest of SA. Some 30.3% is suited to dryland cultivation (S Adey, D Kotze and F Rijkenberg, 2004) with 12.7% being of high potential. Some 15.9% is currently under cultivation. As per DAE&RD of the total of 7.2 m ha of land classified as farmland, 57% is commercial (4.09 m ha) and the balance (3.09 m ha) under communal tenure (DAE&RD, 2010). Commercial grazing land accounts for 70% of the commercial farming area, which indicates the importance of stock farming. As a consequence of extremes in altitude (from sea level to 3,000 masl) and climate (rainfall variation from about 500 mm to 2,000 mm) (Camp, 1997) the province is endowed with a large diversity in natural vegetation. This varies from coastal sub-tropical to montane veld. Soils also vary, from deep sands along the northern coastal belt to well-drained soils in the midlands and poorly drained duplex soils to upland areas (Adey et al, 2004). The diversity in climate creates the opportunity for a range of enterprises. The major agricultural enterprises are sugar cane, timber, citrus and sub-tropical fruit, dairy, beef, poultry, maize, soya, wheat and a range of horticultural crops such as flowers and vegetables. The various sectors make the following percentage contribution to GFI. 13

37 Table 3: Sector contribution to KZN Provincial Gross Farm Income % GFI by Enterprise Category KZN DESCRIPTION % Field Crops 32,2 43,1 31,3 Horticulture 8,5 9,6 9,6 Livestock & Livestock products 45,6 40,7 56,0 Other 13,7 6,6 3,1 This mix shows the importance of livestock and related products to total farm income. Agriculture forestry and fishing is an important contributor to economic growth and employment in the province and has contributed from 4.0% to 5.7% GDPR measured at market prices over the 2000 to 2009 period (C Coetzee, 2009, StatsSA, 2010). The importance of the KZN agricultural economy to the SA agricultural economy is illustrated by the 26% contribution KZN makes to the total SA agricultural GDP A summary of the trend in commercial farming unit numbers is shown below. These have almost halved (41% decline) in the period between 1993 and As mentioned this is indicative of significant structural adjustments taking place within the agricultural sector in response to a variety of policy and economic forces. The consequent pursuit of scale economies has seen an expansion in operations to cover added fixed costs and risk of reduced margins. Table 4: Change in KZN Commercial Farm Numbers ( ) Description Farm numbers 6,080 4,038 3,560 Source, StatsSA, 2002 The trend in employment follows that of commercial farming unit numbers. In the period 1993 to 2002 the decline was 38% for full-time employees and 13% for seasonal workers. There is a strong correlation between the number of farming units and the numbers of full-time employees. On average in 1993 there were 20 employees per farm and in 2002 there were 19. The conclusion is that as operations become larger they retain the same number of employees without adding to employment. This is likely to be through improved efficiencies and per unit productivity. In terms of management plus full time and seasonal workers, employment has declined from 117,155 (equivalent to an effective 35 ha per employment opportunity) to 103,327 (equivalent to an effective 40 ha per employment opportunity) (DAE&RD. 2010, StatsSA, 2007). 14

38 Table 5: Change in KZN Agricultural Employment ( ) EMPLOYMENT Owners and family ,259 - Permanent employees Casual/Seasonal Source, StatsSA, 2002, 2007 A synopsis of the key financial position of commercial agriculture in KZN for the periods 2001/02 and 2006/07 is depicted in the following table. Table 6: Synopsis of the financial position of KZN commercial farmers DESCRIPTION CONSOLIDATED INCOME STATEMENT R'm Gross income Gross Farm income Other Income 267 Current expenditure (excl tax) Direct Indirect Remuneration NPBT Tax (estimate for 2002) NPAT Interest 310,7 266,0 CAPITAL STRUCTURE Assets Land & fixed improvements Movables Liabilities Capital Table 7: Financial performance KZN commercial agriculture ( ) EFFICIENCY MEASUREMENTS % ROI 9,1 14,9 Effective Tax % 1,1 1,1 WACC 9,9 6,9 After tax WACC 9,8 6,8 Source: DAE&RD, 2010, StatsSA,

39 From the above agriculture in KZN experienced strong growth in the 2002 to 2007 period. However what must be pointed out is that a number of price shocks have been experienced in the 2008 to 2010 period. These include the fertilizer and fuel price spike in The deduction, given an overall shrinkage in GDP of 3% for SA agriculture in 2009, is that the current financial position may not be as rosy. What is of significance in the weighted average cost of capital (WACC) has come down from 9.9% to 6.8%, in line with reducing interest rates. The average tax rate based on the actual taxes recorded as paid is 1.1% of net profit before tax (NPBT). 5.3 Free State Provincial agricultural description The free State province covers an area of m ha. As recorded by SAInform reporter agriculture is the dominant form of land use and as per StatsSA agricultural land is 11.3 m ha (StatsSA, 2009). The cultivated land area is about 3.2 m ha (and the natural veld area used for grazing an additional 8.1 m ha. Field crops account for about 44% of the gross agricultural income with animal products an additional 46%. A mix of maize, sorghum, dry beans, sunflower and wheat are cultivated in the eastern free State with many farmers specialising in seed production (SAInfo reporter, SA Yearbook). Horticulture is expanding, accounting in 2002 for nearly 7% in 2007, 8% of GFI. The main crops are potato, asparagus and cherries and export 1.2 m tons of cut flowers annually (SAInfo reporter, StatsSA, 2009) Dairy across the south eastern Free State is of a moderate intensity in terms of production, with an average production level of litres/km 2, compared with more intensive production areas, where output is above 50 litres/ km 2 and as high as 350 litres/km 2 in areas such as the KZN midlands and Tsitsikama (MPO, 2010). Nestlé have a factory in Harrismith but have expressed an opinion the road will not affect their milk collection activities (Krause, pers. comm.). A synopsis of the FS agricultural sector follows. 16

40 Table 8: Synopsis of the financial position of Free State commercial farmers DESCRIPTION CONSOLIDATED INCOME STATEMENT R'm Gross income Current expenditure (excl tax) Direct Indirect Remuneration NPBT Tax (estimate for 2002) 8 24 NPAT Interest 540,3 496,0 CAPITAL STRUCTURE Assets Land & fixed improvements Movables Liabilities Capital Table 9: Financial performance Free State commercial agriculture ( ) EFFICIENCY MEASUREMENTS % ROI 9,0 13,8 Effective Tax % 0,7 0,7 WACC 10,7 7,4 After tax WACC 10,6 7,4 Source: DAE&RD, 2010, StatsSA, 2007 Table 10: Sectoral contribution to Free State provincial Gross Farm income % GFI by Enterprise Category Free State DESCRIPTION % Field Crops 55,7 44,1 Horticulture 6,8 7,8 Livestock & Livestock products 37,4 45,6 Other 0,1 2,5 Agriculture, fisheries and forestry GDP as a percentage of the provincial economy ranges between 3.6% and 8.4% with an average of 5.3% over the 2002 to 2009 period, measured at current prices (StatsSA, 2010). This is nearly twice the percentage share to that of the country as a whole, which is indicative of a relatively greater importance of agriculture to the provincial economy. In terms of the national agricultural economy Free State agriculture contributes 11% to the SA agricultural GDP. 17

41 The key agricultural indicators are presented below. Table 11: Change in Free State commercial farm numbers ( ) FARMING UNITS & AREAS Commercial farm number Farm areas ('000 ha) n/a Source, StatsSA, 2002, 2007 Table 12: Change in Free State agricultural employment ( ) EMPLOYMENT Owners and family n/a - Permanent employees Casual/Seasonal Employment/ha (full-time equivalents) The lower employment generating capacity of the Free State compared to KZN (135 ha per employment opportunity versus 40 ha per employment opportunity) is a reflection of the more extensive nature of agricultural production in the FS as a whole when compared to KZN. Whilst the average area per employment opportunity for the province is 135 ha per employment unit it is noteworthy the I&AP survey indicated an average of 40 ha per employment opportunity for the ADI indicating the higher agricultural potential and more intensive production systems of the area when compared to the rest of the province. 5.4 Area of Indirect Influence: uthukela District Municipality Klipriver Magisterial District In 2003, Klipriver, the magisterial district through which the N3 passes and considered to be the Area of Indirect Influence (AII) for purposes of this study had 118 commercial farmers, with a combined Gross Farming Income (GFI) of R 74.9 m (R m per farm), current expenditure of R 52 m (R m per farm) and capital expenditure of R 5.7 m (R 48,300 per farm). Total farming debt was R 39.5 m (R0.335 m per farm). These figures are indicative of an extensive agricultural economy that can sustain only a low level of debt. The Bioresource Groups (BRG s) that occur in the Klipriver district are those of the Dry Tall Grassveld near the Thukela Toll and Moist Transitional Tall Grassveld along the N3 towards van Reenen s Pass and on the proposed new DBPR route (K Camp, DAE&RD). Moist Highland Sourveld is found on the scarp along the border with FS on both routes. The agricultural potential of these BRGs follows: 18

42 Moist Highland Sourveld: This BRG occurs at an altitude between 1,400 masl 1,800 masl and occurs just below the Montane Veld BRG (occurring on the border with Lesotho). Much of it is mountainous making it suitable for extensive farming only (Camp, 1997). Mean annual rainfall is between 800 mm 1,265 mm, with 80% falling in summer. Winters are cold with occasional snow. Vegetation is characterized as fire maintained grassland. Veld in good condition is dominated by Themeda triandra with overgrazed veld dominated by Eragrostis curvula South facing slopes have generally deeper soils and better grass cover. Prevailing conditions make it difficult to farm. Winter-feed has to be available for stock. An annual mass gain of 120 kg per AU is obtainable for beef. Veld in good to reasonable condition will have a carrying capacity of 2 ha/au. It is recommended to carry 6 sheep for every beef AU for optimal veld use. Moist Transitional Tall Grassveld: This is a transitional zone between the Dry Tall Grassveld and the Moist Highland Sourveld. Altitude ranges from 900 masl 1,400 masl with severe frosts possible. Mean annual rainfall is between 800 mm 1,116 mm. Veld in good condition is dominated by Themeda-Hyparrhenia. If terrain permits the area does have a high agricultural potential with a high percentage of arable land able to support a wide range of crops. Dairy and beef tend to be important enterprises with the veld carrying capacity at 2 ha/au. Dry Tall Grassveld: The mean annual rainfall of this BRG ranges from 666 mm 745 mm, with 4 to 5 dry months in a year. Summers are warm to hot with cool to cold winters and occasional severe frosts. Grasslands are dominated by Hyparrhenia hirta (thatch grass) if overgrazed. Acacia karroo dominates the bushlands. Soils are variable and shallow duplex soils are common. Veld in good to reasonable condition is dominated by Themeda triandra. The BRG is fragile and care is needed in enterprise selection and is classified as an extensive area. Carrying capacity is 3.5 ha/au and weight gains are 120 kg 130 kg/au. Agricultural enterprises in the District are therefore mainly extensive with the focus on Beef. Other livestock are some Dairy. There is limited cropping of maize and other summer grains. Isolated pockets of high value orchards such as pecan do occur. 5.5 Area of Indirect Influence: Thabo Mofutsanyne District Municipality Harrismith Magisterial District The existing and proposed routes for the N3 between the border of KZN and Warden pass through the Thabo Mofutsanyne District Municipality and specifically the Maluti a Phong and Phumelela Local Municipalities, the former in the south east covering the Maluti and Drakensberg side of the FS and the latter in the east of the DM. The Thabo Mofutsanyane DM covers what is also known as the Eastern Free State and the Magisterial District for statistical reporting purposes is the Harrismith District. Indications are there are about 320 commercial farmers in the district (StatsSA, 2002). Rainfall in Harrismith district is on average mm per annum with 79% falling in the period October to March. (StatsSA, 2005) 19

43 The dominant cropping enterprises, with the percentage of cropped areas in brackets are maize (60%), dry beans (10%), soya (10%) and wheat (20%). If a summer/winter crop rotation is practiced this will usually involve wheat in the first season followed by a fallow year and then in the subsequent years soya or dry beans and then maize. The usual summer cropping rotation is two years of maize followed by a year of either soya or dry beans (J Heckroodt, pers. comm.). 5.6 Area of Direct Influence: Agricultural and land use along the routes Farmers in the affected environment participated in information sessions to provide background information on their operations. Some were reluctant to participate especially in the Swinburne / Van Reenen area mostly affected by a number of utility infrastructure projects such as roads, pipelines and electricity. Some 20 responses were received, representing 38,914 ha. Farm sizes varied from a minimum of 200 ha to a maximum of 8,000 ha, with an average of 1,853 ha for the questionnaire respondents. Given that average land sizes for private landowners along the DBPR is 882 ha and for Alt. A, 310 ha and Alt. C, 203 ha this indicates a higher proportion of responses from the larger landowners. Note some of the landowners were located along the Alt. B route, which has not been included in this study but nonetheless still regarded as I&APs. The total Area of Direct influence (the road reserve footprint plus the area of the landowners directly affected by land having to be given up as a consequence of the road) along each of the three routes are; DBPR = 30,083 ha, Alt. A = 23,318 ha and Alt. C = 14,857 ha. Note that many of the landowners along routes A and C are the same and the public sector (SANRAL, Local Municipality and Transnet own significant proportions of the land along the three routes (DBPR 3,629 ha, Alt. A 5,355 ha, Alt. C 6,112 ha). Therefore indicated private agricultural landowner area (with farmer numbers in brackets) are DBPR 26,453 ha (30), Alt. A 17,963 ha (58), Alt. C 8,745 ha (43). From information collected during interviews the enterprise mix of the affected agricultural cropping economy is shown below. Table 13: Area of Direct Influence indicative arable cropping profile 20 Area (ha) Yield (t/ha) % Maize 7 545,00 5,9 67,7% Soya 460,00 2,3 4,1% Dry Beans 780,00 1,7 7,0% Wheat 900,00 2,3 8,1% Sunflowers 300,00 2,0 2,7% Barley 40,00 2,0 0,4% Silage 40,00 40,0 0,4% Maize Irr 300,00 2,7% Wheat Irr 500,00 4,5% Potatoes Irr 200,00 1,8% Cabbages 5,00 0,0% Green maize 10,00 40,0 0,1%

44 Apples 66,00 0,6% Total Area ,00 The veld area and associated livestock operations and numbers reported are: Table 14: Area of Direct Influence livestock resource base Veld (ha) Veld Carrying capacity (ha/lsu) Pastures (ha) Min 100,00 2,00 5,00 Max 5 500,00 3,50 300,00 Average 1 351,39 2,65 104,42 Total , ,00 Table 15: Area of Direct Influence reported livestock numbers Beef Herd size Milking herd Sheep herd Min Max Average Total Employment levels are shown below and average 40 ha per employment opportunity, much the same as for the KZN average, based on the StatsSA records. Table 16: Area of Direct Influence reported employment levels Management Permanent Seasonal Min Max Average Total The loss in employment as a consequence of the servitude on a very conservative, worst case basis, given average farm sizes and average servitude take per farm but applying the average area per employment opportunity will therefore be: Route Total Private owner ADI Area (ha) Farm number (#) Average take/farm (ha) Total Servitude take (ha) DBPR DBPR Deviations Alt A Alt C Employment loss (#) 21

45 The estimates refer to the impact of the servitude alone and do not take into consideration any additional impacts in the event SANRAL buy out the whole farm. 6. LAND VALUES There are three generally accepted methods of property valuation, discussed below. In valuations a term of market value is often applied and for purposes of clarification the present-day South African definition used in legislation reads as: "The amount which the property would have realised if sold on the date of valuation in the open market by a willing seller to a willing buyer." 6.1 Comparable sales transactions There are certain key requirements when applying the comparative sales approach. Zonings for the subject properties under assessment must agree. Any differences between the sold properties, for which a market value exists and the one to be valued must be kept to a minimum to allow an opinion to be expressed that the properties can be considered similar. The definition of market value must be valid, i.e. the parties must act as "willing" sellers and buyers in the "open market". Conditions of sale must not be out of the ordinary. The data on the subject properties must be both accurate and reliable. Some of the challenges in applying the comparable land value approach are the occurrence of misleading transactions captured in the Deeds Registry, which is generally the most appropriate source of information for market transactions. Recognition does need to be given to the fact that transactions entered into the records at the Deeds Office can be misleading for various reasons of prices being too low as a consequence of seller and/or buyer being not well informed, over-eagerness to either buy or sell, deliberate misrepresentation for tax evasion etc. In conclusion, in order to be of value the comparable sale(s) must be normal bona fide (arm's-length) transactions. 6.2 Income Capitalisation Approach The income capitalisation approach (not to be confused with the NPV approach to determine losses in agricultural production), sometimes referred to as the earnings or income approach is not appropriate in determining the value of agricultural property when management and the co-ordination of other capital resources are more responsible for the income than is the land, where buildings constitute a large share of the property asset value, where rapid changes in farming methods occurs or where specialist enterprises (vegetables, poultry etc) account for most of the income, where farms are subsistence, residential and part-time and little or no farm produce is sold, where commercial farms are scattered amongst marginal farms and where agricultural opportunities are declining and demand for property for residential, commercial, and industrial use is increasing (Behmann, 1999). 22

46 6.3 Value of improvements The improvements to a property should never be viewed in isolation, but should be seen as a component contributing to the total value of the whole. It is, for this reason, incorrect to refer to the market value of buildings, as they form an integral part of the land and cannot exist on their own or be owned separately. The following methods can be used to estimate the building costs. Quantity surveying comprises the determination of the exact quantity of labour and material required to erect the improvements, costed per item and totaled together with all other direct and indirect costs to be incurred as well as provision for contractor's profit, if not already included. Unit method (element analysis): applies if no market information is available. The direct and indirect costs are combined to represent the total cost to provide the individual structural elements of the building. The quantity of each structural element is determined and element value determined by applying the total cost rate applicable to each particular element. Square metre factor method is by far the most widely used method for estimating building costs. It entails the determination of the gross areas of the different types of improvements involved, which are then multiplied by the rand-per-square-metre-factor applicable to each building type to arrive at the total building costs. These factors are obtained from actual costs of recently completed buildings of similar form, size and quality. It is important for the unit rates to be market related and for the market to be a competitive one. Cubic metre factor method is similar to the square metre factor method except the valuator works in cubic metres i.e. volume, instead of floor areas. To obtain the unit rate per cubic metre the volume of the typical building would be divided into the known cost. This method is normally used where there are marked differences in the floor to ceiling heights or where this height is relevant to the optimum usage, as in the case of warehouses and factories, and where the square metre approach would not cater for such differences. Depreciation using the straight-line method is generally applied, as the depreciation factor is easily calculated and understood. The limitation of this is that the method is so easy to apply that an inaccurate result can just as easily be obtained. Depreciation is classified in three categories, namely: (a) Physical depreciation (b) Functional obsolescence, and (c) Economic obsolescence. 23

47 6.4 Land value in the affected area from market sales data Comparable sales data was obtained from the Deeds office database for Registration Division GS (KZN area) and Registration Division Harrismith (Free State area). These Registration Divisions cover the whole route alignment area in both provinces. Comparable sales data was obtained for the years January 2008 up to March 2011 and therefore cover the period before and after the recent recession. Suitable comparable sales data was found along the entire routes enabling a realistic opinion of current market related trends along the different alignments and sections. For purpose of analysis land values within the specified four sections of each route were estimated based on the available property sales data occurring within the section or near to it. Maps of the farms in the vicinity of the sections also showing the arable lands are presented in Annexure B: DBPR and DBPR Deviations Table 17: DBPR Keeversfontein to KZN Border Keeversfontein to KZN Border R/ha Ha Boschfontein 2, Doornkraal 5, Average 3,725 1,132 Table 18: DBPR - KZN Border to Tandjiesberg KZN Border to Tandjiesberg R/ha Ha Bloemhoek 1,760 1,477 Brakwal 4, Average R/ha 2,700 2,170 Table 19: DBPR / DBPR Deviations - Tandjiesberg to Lincoln Tandjiesberg - Lincoln R/ha Ha Brakwal 4,703 2,727 De Hoek - part of Brakwal Doris - part of Brakwal Klaris - part of Brakwal Rose Cottage - part of Brakwal Morgenlicht - part of Brakwal Effort - part of Brakwal Average R/ha 4,703 2,727 24

48 Table 20: DBPR / DBPR Deviations - Lincoln to Warden Lincoln to Warden R/ha Ha Apex 100, Afgunst 5, Eindelyk 5,632 n/a Cyprus 6, Bankies 8, Bruwershoek 7, Farwar n/a n/a Marais Rust n/a n/a Average R/ha 8,605 1,584 Alternate A and Alternate C Routes: Table 21: Route Alternate A & C - Keeversfontein to van Reenen Keeversfontaein - van Reenen R/ha Pooteneas Spruit 4,116 Kirk Vale 4,073 Ons Deel 6,595 Danse Kraal 6,316 Average 5,275 Table 22: Route Alternate A & C - van Reenen to Swinburne Van Reenen to Swinburne R/ha Ha Appin 11, Besterswens 3, Average 4, Table 23: Route Alternate A & C Swinburne to 42 nd Hill Swinburne to 42nd Hill (Harrismith) R/ha Albertina 3,746 Alsace 7,890 Bloemhof 3,672 Bloemhof 3,540 Harrismith Dorpsgronden 29 7, ,862 Average R/ha 6,297 Table 24: Route Alternate A & C 42 nd Hill to Warden 42nd Hill to Warden R/ha Ha Besterslaagte 3, Middelpunt 7,782 n/a Christina 19, Diepspruit 3,044 n/a Diepspruit 7,452 n/a Gryskop 5,

49 Brakwater 4, Average R/ha 8,829 1,642 The total area of land take along a section is made up of different land use types and the approximate areas of each is provided in the tables below, with the aggregate market value of the section based on the area of take multiplied by the proxy market value of land as per the tables above. In the case of the route along the DBPR proposal the servitude is required for a new road and so the take is based on a servitude on each side of the proposed route but in the case of the Alternate A and C routes there is an existing road on much of the proposed route/s and so the take is only the additional servitude areas required for the main road (either to the east of the existing road or the west) and the access roads. The summary of the comparison of the value of agricultural land take between the DBPR, DBPR Deviations, Alternate A and Alternate C in terms of market value and NPV of loss in use is shown below. Note no value has been ascribed to urban properties as this report deals with agricultural impacts. Table 25: Summary of comparison of value of land take Route Area (ha) Farmers # Market value (R) DBPR R DBPR Deviations R Alt. A R Alt C R Average Market Value (R/ha) 6.5 Land value expectations of affected agricultural landowners Landowners expressed the view that property prices are changing rapidly and that current market prices are: Table 26: Landowners expectations of land values Veld Drylands Irrigation OH Irrigation Pivot Min Max Average 6 291, In addition indicated land rental values in R/ha/annum are shown below. Removing the one outlying value of R 400/ha, has a 0.1% impact on the rental values as percentage of market values and therefore the average has been retained for purposes of NPV calculations: 26

50 Table 27: Agricultural land rental values Veld Drylands Irrigation Pivot Min 150,00 250,00 900,00 Max 400,00 600, ,00 Average 223,46 400, ,00 Values as % of indicated market values 3,6% 4,5% 7,3% 7. NET PRESENT VALUE QUANTIFYING THE LOSS IN LAND USE A NPV was conducted on various crop and enterprise options to determine the range in losses and the summary results are shown below. Results are sensitive to assumptions on commodity prices and discount factor applied. For commodity prices a low and high scenario has been calculated on the basis of current local budgets and based on SAFEX prices. Where the results are the same a single entry is made. As discussed in the methodology, the discount rate applied is the current land lease values expressed as percentage of landowner expectations of land value. In addition, to assess an overall impact given that farming practice normally involve crop rotations the common rotations where applied to the results to determine a weighted average loss and the results follow. Table 28: NPV of loss for differing enterprise types under appropriate commodity price regimes Minimum Maximum R/ha Dryland maize , ,37 Irrigated maize 1 816, ,76 Soya dryland 5 731, ,99 Drybeans dryland ,62 Wheat dryland , ,81 Sheep 4 709,30 Cattle 3 564,01 27

51 Table 29: NPV of loss for typical summer/winter cropping regime under different commodity price regimes Table 30: NPV of loss of typical summer crop rotation system Table 31: Weighted average NPV of loss based on sub-regional cropping mix Applying an average loss (that is between the low and high scenarios based on pricing regime) to the percentage mix in enterprise types as per the farmer interviews and questionnaires the following average loss per arable and veld use results. Table 32: Average NPV loss for arable land based on the survey results for the Area of Direct Influence Arable land Enterprise Maize Dry Maize Irr Soya Drybeans Wheat Percentage of area 71,90% 0,03% 4,40% 7,40% 13,40% Average NPV loss R R R9 136 R R Weighted average arable loss R

52 Table 33: Average NPV loss for veld based on cattle and sheep as dominant enterprises from the survey results for the Area of Direct Influence Veld Enterprise Cattle Sheep Percentage of area 69% 31% Average NPV loss R3 564 R4 709 Weighted average production loss R3 919 From the above the weighted average across the routes has been calculated, excluding forestry. Note the forestry NPV loss is a function of the timber genera cultivated and the management objective of the timber. In addition there are areas of natural forest that have been included in the Forest and Plantation areas. It was not possible based on the information at hand to identify with any certainty the genera of timber affected. Suffice to say that based on recent work undertaken by Andisa the range in value of standing timber can be between R 55,000 to R 65,000 per ha for wattle and from R 145,000 to R 175,000 for softwoods (pines with long rotations of above 25 years). For purpose of the analysis wattle has been assumed as the dominant forestry type. 8. IMPACT ON AGRI PROCESSING The industries that could be impacted based on the general production system are: 1. Grain milling and animal feeds 2. Abattoirs 3. Dairies Based on the estimated loss in land to the servitude and the percentage share by cropping type the losses estimated to the various industries above are estimated applying the results of the survey amongst farmers in terms o average area to each crop by the indicated yield level to the areas of takebelow. Table 34: Estimated loss to cropping related agri-industry per route alternative Enterprise Maize Dry Maize Irr Soya Drybeans Wheat Percentage of area 71,90% 0,03% 4,40% 7,40% 13,40% Applied yield (t/ha) 5,9 10 2,3 1,7 2,3 The impact on the milling, feed and bean sector given the large volumes produced in the area is considered insignificant. There is also not much to choose between routes A and C, with the DBPR and DBPR deviations routes having the least impact (due to its lower arable potential. In terms of the abattoir sector the impact calculations are based on the information secured during the survey amongst farmers as shown below and also not considered significant. 29

53 Table 35: Estimated loss to livestock agri-industry per route alternative Enterprise Cattle Sheep Percentage of area 69% 31% Production (kg/ha) The dairy in Harrismith felt that neither route would impact their operations. 9. THE DO NOTHING/NO GO OPTION In the short term the do nothing/no go option will leave the current status quo in the agricultural sector in the short term. In the medium to long term the following negative impacts associated with ever-increasing traffic volumes on the same size of road will result. An increase in the incidence of traffic accidents and increased chances for a higher incidence of chemical spills; Increased risks to equipment, vehicles and staff when crossing or entering the road via current farm road access points with heavier traffic. Over the long term the risks posed by increased traffic volumes to agricultural users of the existing N3 will increase and the inevitable need for a new or upgraded road at a future date will be at a greater cost and therefore the do nothing option is not desirable. 10. DBPR DEVIATION ASSESSMENT There are a number of deviations proposed along the DBPR as discussed 10.1 Klip River The additional distance of the deviation to the original alignment is 0,048 km, resulting in an additional 0.4 ha of servitude. This area is categorised as unimproved grassland and falls within the Keeversfontein to KZN border for purposes of land value assessment Wilge River There are two alternate deviations proposed, one has an impact of adding km of additional distance to the route and the other km. This is an area of 0.3 ha and 4.7 ha respectively classified as unimproved grassland and falls within the KZN border to Tandjiesberg section for land value assessment. 30

54 For purposes of impact assessment on the basis of the biggest impact the larger area is assumed. If there is no significant difference between the deviations, on the basis of other environmental considerations, it would be appropriate to negotiate with the land owner (Mr Roland Henderson on the deviation with the least impact for his farming operation in terms of fragmentation and ease of development of crossing points for farm operations Alex Pan The additional length of the deviation to the original route is km, resulting in an additional 0.92 ha of land lost to servitude, all classified as cultivated and falls within the KZN border to Tandjiesberg section for purposes of the land value assessment Buckland Downs The additional length of the deviation to the original route is 0.05 km, resulting in an additional 0.4 ha of land lost to servitude, all classified as unimproved grassland and falls within the Lincoln to Warden section for purposes of the land value assessment The Gorge The reduced length of the deviation compared to the original route is 1.5 km, resulting in a reduced 15 ha of land lost to servitude. 11. SUMMARY OF AGRICULTURAL LOSS IMPACTS Summaries of the agricultural impacts, per route and per section based on the afore-going discussion, are presented in the tables below. The first set of tables ( Table 36 to Table 39) present the areas of take for the different land use and the associated indicative market and NPV losses. 31

55 Table 36: Summary of DBPR servitude value of agricultural land take per section land use De Beers Pass Route Section Description Unit Total Affected land use Cultivated ha R18,870 NPV (R'm) Dongas & eroded ha R0 NPV (R'm) Forest & plantations ha R55,000 NPV (R'm) Thicket & Bush ha R3,919 NPV (R'm) Grassland ha R3,919 NPV (R'm) Summary of NPV and Market values Area of farmland ha Market value R/ha R3,725 R2,700 R4,703 R8,605 R5,761 Market value R 'm Productive value (NPV) NPV (R'm)

56 Table 37: Summary of DBPR Deviation servitude value of agricultural land take per section land use De Beers Pass Route - Deviations Section Description Unit Total Affected land use Cultivated ha R18,870 NPV (R) Dongas & eroded ha R0 NPV (R) Forest & plantations ha R55,000 NPV (R) Thicket & Bush ha R3,919 NPV (R) Grassland ha R3,919 NPV (R m) Summary of NPV and Market values Area of farmland ha Market value R/ha R3,725 R2,700 R4,703 R8,605 R5,794 Market value (R m) Productive value (NPV) (R m)

57 Table 38: Summary of Route Alternate A servitude value of agricultural land take per land use without considering the existing N3 i.e. considered like for like as a new road Alt A Summary accounting for existing N3 sections Section Description Unit Total Affected land use Cultivated ha R18,870 NPV (R) Dongas & eroded ha R0 NPV (R) Forest & plantations ha R55,000 NPV (R) Thicket & Bush ha R3,919 NPV (R) Grassland ha R3,919 NPV (R) Summary of NPV and Market values Area of farmland ha Market value R/ha R5,275 R4,150 R6,297 R8,829 R7,168 Market value R Productive value (NPV) R

58 Table 39: Summary of Route Alternate C servitude value of agricultural land take per land use taking account of the existing N3 Alt C Summary accounting for existing N3 Section Description Unit Total Affected land use Cultivated ha R18,870 NPV (R) Dongas & eroded ha R0 NPV (R) Forest & plantations ha R55,000 NPV (R) Thicket & Bush ha R3,919 NPV (R) Grassland ha R3,919 NPV (R) Summary of NPV and Market values Area of farmland ha Market value R/ha R6,056 R4,150 R6,297 R8,412 R7,402 Market value R Productive value (NPV) R The summary impact per route and per section, are presented in Table 40. The impacts are reflected across the parameters of farmland area, numbers of farmers, market value and productive value of land, grain (tons), livestock production (kgs) and farm infrastructure (numbers of buildings and farm/stock watering dams). 35

59 Route Table 40: Summary of agricultural impacts across all routes and sections 36 Area (ha) Farmer #s Market value (R'm) NPV of loss (R'm) Grain Prodn. loss (t) Livestock prodn. loss (kg) Labour loss Farm infrastructure Bldgs # DBPR Summary R4.46 R , Keeversfontein to KZN Border R 0.69 R , KZN border to Tandjiesberg 73 7 R 0.20 R , Tandjiesberg to Lincoln R 1.05 R , Lincoln to Warden R 2.53 R , De Beers Pass Route - Deviations R4.41 R , Keeversfontein to KZN Border R 0.62 R , KZN border to Tandjiesberg 76 7 R 0.21 R , Tandjiesberg to Lincoln R 1.05 R , Lincoln to Warden R 2.53 R , Alt A Summary accounting for existing R9.52 R ,441 45, N3 sections Keeversfontein to van Reenen R 0.93 R , Van Reenen to Swinburne R 0.38 R , Farm Dams #

60 Swinburne to 42nd Hill (Harrismith) R 1.34 R , nd Hill to Warden R 6.87 R ,222 17, Alt C Summary accounting for existing R5.43 R ,362 31, N3 Keeversfontein to van Reenen 37 4 R 0.23 R , Van Reenen to Swinburne 89 8 R 0.37 R , Swinburne to 42nd Hill (Harrismith) R 0.81 R , nd Hill to Warden R 4.02 R ,222 17, SELECTING THE ROUTE OF LEAST IMPACT In determining the route of least impact an assessment matrix has been developed. The matrix used the measures of: NPV of loss in use this serves as a proxy for the loss in different classes of land use. Processing industry impact this is the potential loss to the direct value adding industries Affected number of farmers this serves as a proxy for the loss in direct road access Numbers of farm infrastructure (dams and buildinsg) affected this is an indicator of the non-land production infrastrucutre loss. Raw scores for each measure were converted to a rating index in relation to the lowest raw score, which was assigned an index of 100. Each of the resultant scores were weighted out of a 100 and summed to provide an overall score, the lowest indicating the route of least impact from an agricultural economic perspective. The weighting per measure was done on the basis of professional judgment. Given that NPV captures all future loss values a weighting of 60% was applied, The processing sector in cropping and livestock is nominally affected and a weighting of 10% for each is applied. For farm infrastructure a weighting of 15% is applied based on the count of dams and buildings affected. Farm numbers are weighted at 5% as most of the impact is covered in the NPV weighting The raw score and index for each measure is shown in Table 41. Table 41: Raw scores and indexes for route comparison Measure Weighting DBPR Raw score 37 Index DBPR - Deviations Alt. A Alt C: N3 Upgrade Raw Raw Raw score Index score Index score Index

61 NPV (R'm) 60% Processing industry - Cropping (t) 10% , , Livestock (kg) 10% 49, , , , Affected farmers (#) 5% Farm infrastructure - Dams (#) 5% Buildings (#) 10% From these indexes the weighted average per measure and for the route overall is calculated as per Table 42. The DBPR route is the least impact followed by DBPR Deviation 4, Alt. C and Alt. A, that with the greatest negative agricultural impact. Table 42: Assessment of least impact route from an agricultural economic perspective Measure Weight DBPR DBPR - Deviations Alt. A Alt C: N3 Upgrade Index Weighted Index Index Weighted Index Index Weighted Index Index Weighted Index NPV (R) 60% Processing industry - Cropping 10% Livestock 10% Affected farmers 5% Farm infrastructure - Dams 5% Buildings 10% Total 100% In addition to the overall least impact ranking for the DBPR from the above, farmers along the DBPR will also gain the benefit of access to a national road that will provide improved market access for their produce. There are 31 private landowners with average farm sizes of about 854 ha farming on a total of 26,453 ha. The average arable land use percentage across all respondents is 38%. Given the more extensive nature of farming along the DBPR a split of 25% arable area and 75% veld grazing was applied and the enterprise mix as supplied by respondent is applied to the arable area to derive a rough indication of enterprise size and possible production volumes along this route. This is then reflected as numbers of vehicle trips based on 22 t loads for arable crops and load sizes for beef of 18 animals per trip and for sheep 120 animals per trip. As per the following calculations in total as much as 2,115 transport trips of agricultural produce could benefit from the DBPR on the assumption the market for the produce is on a linear north-south route along the road and not transverse or east-west to the DBPR. 38

62 Table 43: Agricultural road use Estimated production crops - (t) / livestock (#) Road trips Maize , Soya 610,06 28 Dry Beans 766,25 35 Wheat 2 077,73 94 Sunflowers 353,66 16 Barley 47,15 2 Silage 943,08 43 Potatoes 7 073, Cabbages 117,89 5 Green maize 235,77 11 Apples 1 584,00 72 Sub-total arable produce road trips Beef Sheep Sub-total livestock road trips 231 Total road trip numbers In total as much as 2,115 transport trips of agricultural produce could benefit from the DBPR on the assumption the market for the produce is on a linear north-south route along the road and not transverse or east-west to the DBPR. 13. LEGAL MATTERS SANRAL require the following for construction and operational purposes: 39

63 Road reserves Access roads (Short & Long Term Wayleave Agreements) Borrow pits & quarries Stockpiles and temporary deviations As such the following rights are required Long Term Wayleave Agreement The right to use land on a permanent basis for the purposes of access roads, are acquired by way of entering into Long Term Wayleave Agreements with the owners of all affected properties. The termination date of such Agreements shall be the date on which a Notarial Servitude of Right-of-way is registered over the affected property or a road is formally declared, or an existing declaration of a road is amended in terms of existing legislation in such a manner that the affected land becomes part of a declared road network. Typical examples of access roads that will be acquired in this manner are: Collector/feeder roads required as part of an access management plan to reduce a large number of direct accesses onto the national road; Land required for the realignment of existing provincial/ municipal roads; Land required for the provision of revised access to a property (Property A) over another property (Property B). In such instances a Notarial Servitude of Right-ofway in favour of Property A, will be registered against the Title Deed of Property B. It serves that in these cases SANRAL will remain responsible for the maintenance on these access roads until such time that either a Notarial Servitude of Right-of-way is registered, or such access road is declared as a provincial / municipal road Short Term Way Leave Agreement The right to use land on a temporary basis for the purposes of access roads, are acquired by way of entering into Short Term Wayleave Agreements with the owners of all affected properties. Both the start and termination date to be included in such Agreements, shall be specified. Typical examples of access roads that will be acquired in this manner, are: Temporary deviations; Access roads to Borrow Pits, Spoil Areas, Contractor s Camp Sites, etc; Access roads to be compensated for in terms of Section 53 of the SANRAL Act (i.e. loss payments only). 40

64 The right to use land that is acquired in this manner relates primarily to cases where (for example) an access to a national road has to be relocated for one reason or the other and the internal road reticulation on the farm need to be re-aligned in order to link the internal road network with the new access position. It is important to note that whilst the cost for the actual construction of the internal roads can be covered as part of the construction cost on the project, the landowner is still legally entitled to a direct financial loss as a result of the loss of land suffered and as a result of the re-alignment of such internal roads. It thus serves that a design for such internal roads, needs to be provided in order to assess and determine the direct financial loss of this realignment Road Reserve The areas required for additional road reserve purposes, constitute permanent land acquisitions and will ultimately be sub-divided from the parent properties and will be formally transferred into the name of SANRAL. It follows that any improvements, services, infrastructure, development and registered or unregistered rights within the said areas, will (either temporarily or permanently) have to be re-instated, relocated or compensated for Planned Developments Virtually every landowner has either planned or may start planning to develop in one way or the other, the land that has to be acquired. The potential and best use of required land must be identified and hence, compensated for. This principle is subject to the provisos that the potential and best use are: Financially feasible; Economically feasible; Practically feasible; and Legally feasible. Compensation in respect the potential and best use can only be considered upon satisfaction of the above criteria. Therefore, the landowner has to provide documentation, plans, all applicable statutory approvals, rezoning approvals, etc, before the said compensation can be based thereon. Direct quantifiable costs (such as planning costs and professional fees) will then have to be considered as actual financial losses and landowners will have to be duly reimbursed Access Roads for Private Usage In terms of the provisions of the Land Survey Act, 1997 (Act 8 of 1997) no property may be left without a formal and/or registered access to such property. New access roads are usually required to provide access to properties whose access has been cut off as a result of the construction of a National Road, or if an existing access to a National Road has to be closed and re-located for safety reasons. Full ownership of land required for access road purposes is usually not required. 41

65 However, the only way to safeguard access roads, as well as to safeguard all landowners rights to access, is by way of servitude registration. Therefore, an Agreement whereby the access road is to be formalised and whereby SANRAL is granted authority to register Rightof-way Servitude against the Title Deed of the affected property, has to be entered into between SANRAL and the affected landowner. When existing access roads are closed and the access points are moved as a result of safety issues, the affected landowners are also entitled to compensation for the loss of the land required for the relocation of the access roads and any real financial losses that may be suffered as a result thereof. The quantum of such compensation must also be taken into account during the design phase Severed Land It is inevitable that properties will be severed by road reserves. If a portion of land is severed in such a way that it is rendered useless to the owner and will also not be able to exist as an independent unit. Furthermore, access to the severed land will in most instances not exist. In cases where access is available to the small portion of the property and the larger portion is then severed without access an even greater financial liability is posed if access is not provided. SANRAL or its agents will take care to ensure that access is, as far as possible, always available to those portions of properties that are severed by the road, especially if large portions of land are being severed. In certain cases, the road reserve divides a property in half. Note should be taken of the existing land usage. If it is grazing land, the effect would be less on the owner compared to intensive farming, though careful consideration needs to be given to the need for agricultural under- or over-passes (subways or bridges) in view of the grazing camp rotational scheme commonly implemented in the agricultural sector. Although the provision of such agricultural under or over-passes is costly, it is important to note that SANRAL is legally obliged to put the landowner in the same or in a similar position than that what he/she was in before the construction of the road. This may well require the comparing of the costs related to the provision of an agricultural underpass with the costs associated with the acquisition of the severed portion of land. In particular care needs to be taken in construction of underpasses as they may not be large enough in time to allow the passage of large agricultural machinery, especially contractor land preparation, planting and harvesting equipment. In addition depending on terrain and run-off they can develop into impassable watercourses It also needs to be noted that where severed portions of properties are acquired, they must be subjected to being sub-divided in terms of Act 70 of 1970 (which governs that agricultural land being sub-divided, should be able to function as an independent economically viable unit) in order to facilitate the transfer of the severed land to SANRAL. If the consent required in terms of Act 70 of 1970 cannot be obtained, it may result in SANRAL being obliged to acquire the entire property, irrespective of whether access is available to a large portion thereof Pending legislation 42

66 The Expropriation Bill, tabled in Parliament in April 2008 is intended to replace the Expropriation Act of Note needs to be taken of Chapter 4 of this Bill, which fundamentally changes who is eligible for compensation in cases of expropriation. In the current situation it is the holders of real rights i.e. title deed holders and bondholder. In terms of the new proposed legislation it is incumbent upon the expropriating authority to establish if there are any holders of unregistered rights such as Labour Tenant rights from reasonable sources such as DRD&LR. In addition consideration is needed on issues of land and water related reform to redress the results of past discrimination. In cases where the proposed road not only affects land-owner buildings but also labour housing, the rights of the farm residents and workers will need to be considered and compensated. It is recommended that these issues be considered immediately rather than waiting for the passing of the legislation. 14. ISSUES RAISED Respondents to the questionnaire raised the following issues: Uncontrolled fires Road cuts through 9 worker houses For a four-month period seasonal workers have to be moved across a national road to get to area of operation Theft and increased crime (especially stock theft) Current N3 is a main source of access to farms along the route, without alternatives Movement of large agricultural machinery across roads and underpasses that are inadequately wide Polluted grazing becomes unpalatable Road dissects irrigation source Difficulty in moving livestock across N3 A number of the issues can be grouped into farming operations for purposes of rating. The impacts identified are: Loss in farmland and future revenue stream Impact on farm infrastructure Impact on farming operations Fire and fire control Impact on agri-industry Impact on employment 15. AGRICULTURAL ECONOMIC IMPACTS 15.1 Loss in agricultural land and in future revenue streams 43

67 Description of impact: Agricultural land will be lost to the servitude, which has been quantified with the available data set. Note this does not factor in the loss resultant from situations where SANRAL purchases the complete farm and the land, if not rented out could potentially then go out of production. The loss is measured as a cost in land acquisition at historic market values and the loss in future revenue. The DBPR servitude loss as per the data set of properties available will result in the loss of about 775 ha of agricultural land. The recent market value of this loss is R 4.46 m. The assessed future earnings loss estimate is R 5.5 m. The DBPR deviation servitude loss as per the data set of properties available will result in the loss of about 761 ha of agricultural land. The recent market value of this loss is R 4.41 m. The assessed future earnings loss estimate is R 6.07 m. The Alt. A servitude loss as per the data set of properties available will result in the loss of about 964 ha of agricultural land. The recent market value of this loss is R 9.52 m. The assessed future earnings loss estimate is R m. The Alt. C servitude loss as per the data set of properties available will result in the loss of about 726 ha of agricultural land. The recent market value of this loss is R 5.43 m. The assessed future earnings loss estimate is R m. Table 13-1 Loss in agricultural land and in future revenue stream Construction phase without mitigation Route Nature Extent Duration Intensity Irreplaceability Consequence Probability Significance Confidence DBPR Negative Low Low Medium High Low High Low High DBPR Negative Low Low Medium High Low High Low High Dev. Alt A Negative High Low Medium High Medium High Medium High Alt C Negative Medium Low Low High Medium High Low High Do Nothing Neutral Low Low Low Low Low High Low High Operational phase without mitigation DBPR Negative Medium High Medium High Medium High Medium High Alt A Negative Medium High Medium High Medium High Medium High Alt C Negative Medium High Medium High Medium High Medium High Do Nothing Neutral Low Low Low Low Low High Low High objective: To minimize the loss in high potential arable land. measures: Routes that pass through areas of least arable potential should be followed, within the constraints of best practice road engineering design. 44

68 Assessment of construction phase with mitigation: This would reduce the losses to arable farming and lessen the negative impact Assessment of operational phase with mitigation: This would reduce the losses to arable farming and lessen the negative impact Farming operations Description of impact: A number of different farming operations will be impacted. These include; Management of lands and employees activities on lands now fragmented from the main operation; Access to town for operational business if prevented from accessing the Toll road Crossing for cattle and equipment (noting that some of the farming equipment, such as harvesters is large Cattle passes up the escarpment near van Reenen Dust and pollutants dust affecting the quality of the wool clip, only during the construction period. Concerns have been expressed as to the impact of dust during construction on grass palatability for livestock. A livestock expert consulted (Dr A Patterson pers communication, was of the view this would not be permanent and depended on wind direction and had no knowledge of this being an issue elsewhere). Crime and especially the threat of stock theft of sheep along the DBPR which to date has been isolated and reportedly reasonably isolated from the problem. With an improved N3 road and adequate access/overpasses, safety for farm equipment and staff crossing the road should be enhanced as too, will be the safety for local users of the N3 when transporting farm produce. On balance there is not a significant difference between both the A and C routes in terms of farming operations. Arable area for route A is 301 ha and for route C, 285 ha. The DBPR and DBPR Deviations arable land loss is 142 ha. DBPR may be more affected in terms of increased sheep stock theft than currently. Alternative A will require agreement on the retention of the cattle pass at van Reenen s. Table 13-2 Farming operations Construction phase without mitigation Route Nature Extent Duration Intensity Irreplaceability Consequence Probability Significance DBPR Negative Medium Low Medium Medium Medium High Medium High DBPR Negative Medium Low Medium Medium Medium High Medium High Dev. Alt A Negative Medium Low Medium Medium Medium High Medium High Alt C Negative Medium Low Medium Medium Medium High Medium High Do Neutral Low Low Low Low Low High Low High Nothing Operational phase without mitigation DBPR Negative Medium High low Medium Medium Medium Medium High 45 Confidence

69 DBPR Negative Medium High Medium Medium Medium High Medium High Dev. Alt A Negative Medium High Medium Medium Medium Medium Medium High Alt C Negative Medium High Medium Medium Medium Medium Medium High Do Neutral Low Low Low Low Medium High Low High Nothing objective: To reduce impacts of fragmentation on management of farms. measures: In consultation with farmer associations set up a joint planning committee for positioning of feeder roads, overpasses and underpasses and cattle passes. Set up landowner forums that meet monthly and appoint a liaison officer whose responsibility it will be to interact with all landowners along the route. Use watering system for dust roads during construction. Assessment of construction phase with mitigation: Reduced negative impacts on dust and pollution Assessment of operational phase with mitigation: Reasonable access to fragmented lands and the main road through positioning of access and feeder roads Farm infrastructure Description of impact: The infrastructural impacts relate to farm buildings affected by the servitude, farm houses and farm worker housing, boreholes and water sources for irrigation, cattle grazing camps and on-farm roads. In making a judgment on impacts only farm structures and farm dams were considered Agricultural infrastructure along the routes will be most affected closer to Warden. In total 10 farm dams and 37 farm structures will be affected along the DBPR, 17 farm dams and 36 structures along the DBPR Deviations, and 14 farm dams and 9 farm structures along routes A and 13 farm dams and 7 farm structures along route C. Note that some structures included here are merely close to the servitude but included as an impact). Dams for example that are either directly impacts by the road servitude and those near to the servitude (<100 m) have been included as thses dams would in all probability have served the cattle watering needs of a wider area now cut off by the road. Table 13-3 Farm Infrastructure Construction phase without mitigation Route Nature Extent Duration Intensity Irreplaceability Consequence Probability Significance DBPR Negative Low Low Low Low Low High Low High DBPR Negative Low Low Low Low Low High Low High Dev. Alt A Negative Low Low Low Low Low High Low High Alt C Negative Low Low Low Low Low High Low High Do Neutral Low Low Low Low Low High Low High Nothing 46 Confidence

70 Operational phase without mitigation DBPR Negative Medium High Low Low Low High Low High DBPR Negative Medium High Low Low Low High Low High Dev. Alt A Negative Low High Low Low Low High Low High Alt C Negative Low High Low Low Low High Low High Do Nothing Neutral Low High Low Low Low High Low High objective: To limit negative impacts on farm infrastructure. measures: Consider routing options to avoid affected infrastructure if practical, compensation and/or rehabilitation of affected infrastructure in consultation with farmer representatives. Assessment of construction phase with mitigation: Impacts can be offset in advance of construction Assessment of operational phase with mitigation: Impacts can to some degree be managed, however there may be instances where the impact is so severe on the farming operation, especially if small, it will make it non viable. In such isolated instances SANRAL will have to buy the complete property Fire and fire break control Description of impact: Fire is an existing hazard along the existing N3 route, especially during times of strong wind. Uncontrolled fires can cause devastation over a large area. However a wider N3 may offer a better man-made firebreak to prevent the spread of fire. The biggest risk is fires started by road users, especially in winter, when those who have broken down or who are waiting for lifts may light fires and leave them unattended or still burning when they depart. The agricultural sector along the DBPR will be become affected by these potential causes, whilst those along the new sections of the Alternative A route will also be potentially. Those along the existing N3 used in Alternate A and C will not experience any additional impact over and above the existing experience and threat. Table 13-4 Fire and fire break control Construction phase without mitigation Route Nature Extent Duration Intensity Irreplaceability Consequence Probability Significance Confidence DBPR Negative Medium Low Low Medium Medium Low Low Medium DBPR Negative Medium Low Low Medium Medium Low Low Medium Dev. Alt A Negative Medium Low Low Medium Medium Low Low Medium Alt C Negative Medium Low Low Medium Medium Low Low Medium Do Nothing Negative Medium Low Low Medium Medium Low Low Medium Operational phase without mitigation DBPR Negative Medium High Medium Medium Medium Low Medium Medium 47

71 DBPR Negative Medium High Medium Medium Medium Low Medium Medium Dev. Alt A Neutral Medium High Medium Medium Medium Low Medium Medium Alt C Neutral Medium High Medium Medium Medium Low Medium Medium Do Nothing Negative Medium High Medium Medium Medium Low Medium Medium objective: To reduce the incidence and risk of fires. measures: 1. Education of the travelling public not to throw out cigarettes 2. Signage on the routes to warn of fires 3. Co-ordinated fire-break maintenance with farmers 4. Fire response team to assist farmers fight fires Assessment of construction phase with mitigation: This time should be used as a period to establish protocols and relationships around fire prevention between N3TC and landowners. Assessment of operational phase with mitigation: A managed risk and response situation operating to agreed standards Employment Description of impact: The farming employees will run the risk of job loss. DBPR and DBPR Deviations could result in the loss of about 19 jobs, Alt. A, 24 jobs and Alt. C, 18. Table 13-5 Employment Construction phase without mitigation Route Nature Extent Duration Intensity Irreplaceability Consequence Probability Significance Confidence DBPR Negative Medium Low Medium Medium Medium Low Medium Medium DBPR Negative Medium Low Medium Medium Medium Low Medium Medium Dev. Alt A Negative Medium Low Medium Medium Medium Low Medium Medium Alt C Negative Medium Low Medium Medium Medium Low Medium Medium Do Nothing Neutral Medium Low Medium Medium Medium Low Medium Medium Operational phase without mitigation DBPR Negative Medium High Medium Medium Medium High Medium Medium DBPR Negative Medium High Medium Medium Medium Low Medium Medium Dev. Alt A Negative Medium High Medium Medium Medium High Medium Medium Alt C Negative Medium High Medium Medium Medium High Medium Medium Do Nothing Neutral Medium Low Medium Medium Medium High Medium Medium 48

72 objective: To minimise job losses. measures: Develop a referral system so that farmers forced to retrench can have a point of contact to which they can refer workers to opportunities with construction companies and road maintenance operators. Assessment of construction phase with mitigation: It is possible that during construction more jobs could be created than lost through affected farming operations. Assessment of operational phase with mitigation: Road maintenance opportunities (albeit limited should result Impact on agri business Description of impact: The impact would be reduced supplies of grains to the milling industry (DBPR & DBPR Deviations = 678 t/annum, Alt. A = 1,441 t/annum, Alt. C = 1,362 t/annum). In addition there will be reduced supplies to the meat industry. In terms of beef and sheep estimates are; DBPR = 49,469 kg/annum, DBPR Deviations = 44,227 kg/annum, Alt. A = 45,324 kg/annum, Alt. C = 31,029 kg/annum. DBPR will be more affected in the arena of livestock than grains, when compared to DBPR Deviations, Alternate A and C and less affected in terms of grains than Alt A and Alt. C. Table 13-6 Impact on agri business Construction phase without mitigation Route Nature Extent Duration Intensity Irreplaceability Consequence Probability Significance DBPR Negative Low Low Low Low Low High Low High DBPR Negative Low Low Low Low Low High Low High Dev. Alt A Negative Low Low Low Low Low High Low High Alt C Negative Low Low Low Low Low High Low High Do Neutral Low Low Low Low Low High Low High Nothing Operational phase without mitigation DBPR Negative Medium High Low Low Low High Low High Confidence DBPR Negative Low High Low Low Low High Low High Dev. Alt A Negative Low High Low Low Low High Low High Alt C Negative Low High Low Low Low High Low High Do Nothing Neutral Low High Low Low Low High Low High objective: To increase productivity of non-affected areas. 49

73 Nature Extent Duration Intensity Reversibility Impact on Irreplaceable Resources Consequence Probability Significance Confidence N3: De Beers Pass Section Agricultural Economic Specialist Study June 2014 FINAL REPORT measures: Farmers could develop irrigation potential where available and establish pastures to offset lost grazing. Assessment of construction phase with mitigation: These mitigation actions could reduce any negative impacts. Assessment of operational phase with mitigation: The negative impacts will be further reduced. 16. IMPACT ASSESSMENT PER SECTION FOR EACH OF THE ROUTE ALTERNATIVES For purposes of the assessment per section the number of impacts have been reduced from the six different impacts applied to the whole route analysis to one including all the different dimensions so as not to have a myriad of different assessments that would make it impossible to take a view on the agricultural impact per section. The impacts are considered for the construction and operation phases, noting that as national roads are not decommissioned as is the case in mines and some specific industries and as such no assessment is undertaken of a decommissioning phase DBPR Section 1 Construction Phase Impact on agriculture Impact Description: 4 farmers affected with 165 ha of agricultural land lost (111ha of grassland, 67 ha thicket and bush, 7 ha forest and/or plantation) at an NPV of R 1.06 m, 5 employment opportunities and 1 farm dam, 14,137 kg of livestock production potential lost per annum. : Objective is to minimize impacts on high potential agricultural and forestry land by aligning routes away from these areas where feasible.. Rebuild affected farm dam if still in use for cattle watering, educate construction workers on fire dangers and ensure secure areas for cooking fires, co-ordinate firebreak management with affected landowners with fire response team to assist farmers with fire controls. Agree location of underpasses/overpasses required to minimize farm fragmentation. Water construction roads during construction phase to minimize dust Without Negative Low Low Medium Low Medium Low High Low High 50

74 Nature Extent Duration Intensity Reversibility Impact on Irreplaceable Resources Consequence Probability Significance Confidence Nature Extent Duration Intensity Reversibility Impact on Irreplaceable Resources Consequence Probability Significance Confidence N3: De Beers Pass Section Agricultural Economic Specialist Study June 2014 FINAL REPORT With Negative Low Low Low Low Medium Low High Low High Cumulative Impact This is low as it is a new road development and the additional major road through the area will improve farmer access to markets and reduce traffic flow along the existing N3, for ease of use by farmers using and crossing this existing road, therefore having a medium level of positive significance impact Operation Phase Impact on agriculture Impact Description: 4 farmers affected with 165 ha of agricultural land lost (111ha of grassland, 67 ha thicket and bush, 7 ha forest and/or plantation) at an NPV of R 1.06 m, 5 employment opportunities and 1 farm dam, 14,137 kg of livestock production potential lost per annum : Educate the public on fire dangers through billboards, encourage stopping at designated areas, co-ordinate firebreak management with affected landowners with fire response team to assist farmers with fire controls. Without Negative Low High Low Low Medium Low High Low High With Negative Low High Low Low Medium Low High Low High Cumulative Impact This is low as it is a new road development and the additional major road through the area will improve farmer access to markets and reduce traffic flow along the existing N3, for ease of use by farmers using and crossing this existing road, therefore having a medium level of positive significance impact Section 2 Construction Phase Impact on agriculture Impact Description: 7 farmers affected with 73 ha of agricultural land lost (all grassland) at an NPV of R 0.29 m, 2 employment opportunities, 5,809 kg of livestock production potential lost per annum. : Educate construction workers on fire dangers and ensure secure areas for cooking fires, co-ordinate firebreak management with affected landowners with fire response team to assist farmers with fire controls. Agree underpasses/overpasses required to minimize farm fragmentation. Water construction roads during construction phase to minimize dust 51

75 Nature Extent Duration Intensity Reversibility Impact on Irreplaceable Resources Consequence Probability Significance Confidence N3: De Beers Pass Section Agricultural Economic Specialist Study June 2014 FINAL REPORT Without With Negative Low Low Low Low Medium Low High Low High Negative Low Low Low Low Medium Low High Low High Cumulative Impact This is low as it is a new road development and the additional major road through the area will improve farmer access to markets and reduce traffic flow along the existing N3, for ease of use by farmers using and crossing this existing road, therefore having a medium level of positive significance impact Operation Phase Impact on agriculture Impact Description: 7 farmers affected with 73 ha of agricultural land lost (all grassland) at an NPV of R 0.29 m, 2 employment opportunities, 5,809 kg of livestock production potential lost per annum. : Educate the public on fire dangers through billboards, encourage stopping at designated areas, co-ordinate firebreak management with affected landowners with fire response team to assist farmers with fire controls. Without Negative Low High Low Low Medium Low High Low High With Negative Low High Low Low Medium Low High Low High Cumulative Impact This is low as it is a new road development and the additional major road through the area will improve farmer access to markets and reduce traffic flow along the existing N3, for ease of use by farmers using and crossing this existing road, therefore having a medium level of positive significance impact Section 3 Construction Phase Impact on agriculture Impact Description: 5 farmers affected with 223 ha of agricultural land lost (34 ha of cultivated, 185 ha grassland, 1 ha thicket and bush, 3 ha forest and/or plantation) at an NPV of R 1.38 m, 6 employment opportunities, 9 farm structures and 1 farm dam, 163 t of grain and 14,755 kg of livestock production potential lost per annum. : Objective is to minimize impacts on high potential agricultural and forestry land by aligning routes away from these areas where feasible. None appear possible on this section. Rebuild affected farm dam if still in use for cattle watering, compensate for any structures directly affected, educate construction workers on fire dangers and ensure secure areas for cooking fires, co-ordinate firebreak management with affected landowners with fire response team to assist farmers with fire controls. Agree with farmers on underpasses/overpasses required to minimize farm fragmentation. Water construction roads during construction phase to minimize dust 52

76 Nature Extent Duration Intensity Reversibility Impact on Irreplaceable Resources Consequence Probability Significance Confidence Nature Extent Duration Intensity Reversibility Impact on Irreplaceable Resources Consequence Probability Significance Confidence N3: De Beers Pass Section Agricultural Economic Specialist Study June 2014 FINAL REPORT Without Negative Low Low Medium Medium Medium Medium High Medium High With Negative Low Low Low Medium Medium Low High Low High Cumulative Impact This is medium, based on the number of farm structures impacted but it is a new road development and the additional major road through the area will improve farmer access to markets and reduce traffic flow along the existing N3, for ease of use by farmers using and crossing this existing road, therefore having a medium level of positive significance impact Operation Phase Impact on agriculture Impact Description: 5 farmers affected with 223 ha of agricultural land lost (34 ha of cultivated, 185 ha grassland, 1 ha thicket and bush, 3 ha forest and/or plantation) at an NPV of R 1.38 m, 6 employment opportunities, 9 farm structures and 1 farm dam, 163 t of grain and 14,755 kg of livestock production potential lost per annum. : Educate the public on fire dangers through billboards, encourage stopping at designated areas, co-ordinate firebreak management with affected landowners with fire response team to assist farmers with fire controls. Without With Negative Low High Medium Medium Medium Medium High Medium High Negative Low High Low Medium Medium Low High Low High Cumulative Impact This is medium, based on the number of farm structures impacted but it is a new road development and the additional major road through the area will improve farmer access to markets and reduce traffic flow along the existing N3, for ease of use by farmers using and crossing this existing road, therefore having a medium level of positive significance impact Section 4 Construction Phase Impact on agriculture Impact Description: 15 farmers affected with 294 ha of agricultural land lost (108 ha cultivated, 186 ha of grassland) at an NPV of R 2.76 m, 7 employment opportunities 28 farm structures and 8 farm dam, 14,786 kg of livestock production potential lost per annum. : Objective is to minimize impacts on high potential agricultural land by aligning routes away from these areas where feasible. None appear possible on this section. Rebuild affected farm dams if still in use for cattle watering, compensate for directly affected 53

77 Nature Extent Duration Intensity Reversibility Impact on Irreplaceable Resources Consequence Probability Significance Confidence Nature Extent Duration Intensity Reversibility Impact on Irreplaceable Resources Consequence Probability Significance Confidence N3: De Beers Pass Section Agricultural Economic Specialist Study June 2014 FINAL REPORT structures, educate construction workers on fire dangers and ensure secure areas for cooking fires, co-ordinate firebreak management with affected landowners with fire response team to assist farmers with fire controls. Agree underpasses/overpasses required to minimize farm fragmentation. Water construction roads during construction phase to minimize dust Without Negative Medium Low Medium Low Medium Medium High Medium High With Negative Medium Low Medium Low Medium Medium High Medium High Cumulative Impact This is medium, based on the number of farm structures impacted but it is a new road development and the additional major road through the area will improve farmer access to markets and reduce traffic flow along the existing N3, for ease of use by farmers using and crossing this existing road, therefore having a medium level of positive significance impact Operation Phase Impact on agriculture Impact Description: 4 farmers affected with 165 ha of agricultural land lost (111ha of grassland, 67 ha thicket and bush, 7 ha forest and/or plantation) at an NPV of R 1.06 m, 5 employment opportunities and 1 farm dam, 14,137 kg of livestock production potential lost per annum. : Educate the public on fire dangers through billboards, encourage stopping at designated areas, co-ordinate firebreak management with affected landowners with fire response team to assist farmers with fire controls. Without Negative Medium High Medium Low Medium Medium High Medium High With Negative Medium High Medium Low Medium Medium High Medium High Cumulative Impact This is medium, based on the number of farm structures impacted but it is a new road development and the additional major road through the area will improve farmer access to markets and reduce traffic flow along the existing N3, for ease of use by farmers using and crossing this existing road, therefore having a medium level of positive significance impact 54

78 Nature Extent Duration Intensity Reversibility Impact on Irreplaceable Resources Consequence Probability Significance Confidence Nature Extent Duration Intensity Reversibility Impact on Irreplaceable Resources Consequence Probability Significance Confidence N3: De Beers Pass Section Agricultural Economic Specialist Study June 2014 FINAL REPORT 16.2 DBPR with Deviations Section 1 Construction Phase Impact on agriculture Impact Description: 5 farmers affected with 167 ha of agricultural land lost (186 ha of grassland, 44 ha thicket and bush, 16 ha forest and/or plantation) at an NPV of R 1.49 m, 4 employment opportunities, 2 farm structures and 2 farm dams, 11,990 kg of livestock production potential lost per annum. : Objective is to minimize impacts on high potential agricultural and forestry land by aligning routes away from these areas where feasible. None appear possible on this section. Rebuild affected farm dams if still in use for cattle watering, compensate for structures directly affected, educate construction workers on fire dangers and ensure secure areas for cooking fires, co-ordinate firebreak management with affected landowners with fire response team to assist farmers with fire controls. Agree underpasses/overpasses required to minimize farm fragmentation. Water construction roads during construction phase to minimize dust Without With Negative Medium Low Medium Low Medium Medium High Medium High Negative Low Low Low Low Medium Low High Low High Cumulative Impact This is low as it is a new road development and the additional major road through the area will improve farmer access to markets and reduce traffic flow along the existing N3, for ease of use by farmers using and crossing this existing road, therefore having a medium level of positive significance impact Operation Phase Impact on agriculture Impact Description: 5 farmers affected with 167 ha of agricultural land lost (186 ha of grassland, 44 ha thicket and bush, 16 ha forest and/or plantation) at an NPV of R 1.49 m, 4 employment opportunities, 2 farm structures and 2 farm dams, 11,990 kg of livestock production potential lost per annum. : Educate the public on fire dangers through billboards, encourage stopping at designated areas, co-ordinate firebreak management with affected landowners with fire response team to assist farmers with fire controls. 55

79 Nature Extent Duration Intensity Reversibility Impact on Irreplaceable Resources Consequence Probability Significance Confidence Nature Extent Duration Intensity Reversibility Impact on Irreplaceable Resources Consequence Probability Significance Confidence N3: De Beers Pass Section Agricultural Economic Specialist Study June 2014 FINAL REPORT Without With Negative Medium High Medium Low Medium Medium High Medium High Negative Low High Low Low Medium Low High Low High Cumulative Impact This is low to medium due to value of NPV as a result of the forest area values. Farmers in this section already have reasonable access to the existing N Section 2 Construction Phase Impact on agriculture Impact Description: 7 farmers affected with 76 ha of agricultural land lost (all grassland) at an NPV of R 0.30 m, 2 employment opportunities and 1 farm structure, 6,050 kg of livestock production potential lost per annum. : Compensate for any directly affected farm structure, educate construction workers on fire dangers and ensure secure areas for cooking fires, co-ordinate firebreak management with affected landowners with fire response team to assist farmers with fire controls. Agree underpasses/overpasses required to minimize farm fragmentation. Water construction roads during construction phase to minimize dust Without Negative Low Low Low Low Medium Low High Low High With Negative Low Low Low Low Medium Low High Low High Cumulative Impact This is low as it is a new road development and the additional major road through the area will improve farmer access to markets and reduce traffic flow along the existing N3, for ease of use by farmers using and crossing this road. Operation Phase Impact on agriculture Impact Description: 7 farmers affected with 76 ha of agricultural land lost (all grassland) at an NPV of R 0.30 m, 2 employment opportunities and 1 farm structure, 6,050 kg of livestock production potential lost per annum. : Educate the public on fire dangers through billboards, encourage stopping at designated areas, co-ordinate firebreak management with affected landowners with fire response team to assist farmers with fire controls. Without Negative Low High Low Low Medium Low High Low High 56

80 Nature Extent Duration Intensity Reversibility Impact on Irreplaceable Resources Consequence Probability Significance Confidence N3: De Beers Pass Section Agricultural Economic Specialist Study June 2014 FINAL REPORT With Negative Low High Low Low Medium Low High Low High Cumulative Impact This is low as it is a new road development and the additional major road through the area will improve farmer access to markets and reduce traffic flow along the existing N3, for ease of use by farmers using and crossing this existing road, therefore having a medium level of positive significance impact Section 3 Construction Phase Impact on agriculture Impact Description: 5 farmers affected with 223 ha of agricultural land lost (34 ha of cultivated, 185 ha grassland, 1 ha thicket and bush, 3 ha forest and/or plantation) at an NPV of R 1.38 m, 6 employment opportunities, 9 farm structures and 1 farm dam, 163 t of grain and 14,755 kg of livestock production potential lost per annum. : Objective is to minimize impacts on high potential agricultural and forestry land by aligning routes away from these areas where feasible. None appear possible on this section. Rebuild affected farm dam if still in use for cattle watering, compensate for any structures directly affected, educate construction workers on fire dangers and ensure secure areas for cooking fires, co-ordinate firebreak management with affected landowners with fire response team to assist farmers with fire controls. Agree with farmers on underpasses/overpasses required to minimize farm fragmentation. Water construction roads during construction phase to minimize dust Without With Negative Low Low Medium Medium Medium Medium High Medium High Negative Low Low Low Medium Medium Low High Low High Cumulative Impact This is medium, based on the number of farm structures impacted but it is a new road development and the additional major road through the area will improve farmer access to markets and reduce traffic flow along the existing N3, for ease of use by farmers using and crossing this existing road, therefore having a medium level of positive significance impact Operation Phase Impact on agriculture Impact Description: 5 farmers affected with 223 ha of agricultural land lost (34 ha of cultivated, 185 ha grassland, 1 ha thicket and bush, 3 ha forest and/or plantation) at an NPV of R 1.38 m, 6 employment opportunities, 9 farm structures 57 : Educate the public on fire dangers through billboards, encourage stopping at designated areas, co-ordinate firebreak management with affected landowners with fire response team to assist farmers with fire controls.

81 Nature Extent Duration Intensity Reversibility Impact on Irreplaceable Resources Consequence Probability Significance Confidence Nature Extent Duration Intensity Reversibility Impact on Irreplaceable Resources Consequence Probability Significance Confidence N3: De Beers Pass Section Agricultural Economic Specialist Study June 2014 FINAL REPORT and 1 farm dam, 163 t of grain and 14,755 kg of livestock production potential lost per annum. Without Negative Low High Medium Medium Medium Medium High Medium High With Negative Low High Low Medium Medium Low High Low High Cumulative Impact This is medium, based on the number of farm structures impacted but it is a new road development and the additional major road through the area will improve farmer access to markets and reduce traffic flow along the existing N3, for ease of use by farmers using and crossing this existing road, therefore having a medium level of positive significance impact Section 4 Construction Phase Impact on agriculture Impact Description: 15 farmers affected with 294 ha of agricultural land lost (108 ha cultivated, 186 ha of grassland) at an NPV of R 2.76 m, 7 employment opportunities 28 farm structures and 8 farm dams, 14,786 kg of livestock production potential lost per annum. : Objective is to minimize impacts on high potential agricultural land by aligning routes away from these areas where feasible or along farm boundaries. The deviation along Alexpan appear possible. Rebuild affected farm dams if still in use for cattle watering, compensate for directly affected structures, educate construction workers on fire dangers and ensure secure areas for cooking fires, co-ordinate firebreak management with affected landowners with fire response team to assist farmers with fire controls. Agree underpasses/overpasses required to minimize farm fragmentation. Water construction roads during construction phase to minimize dust Without Negative Medium Low Medium Low Medium Medium High Medium High With Negative Medium Low Medium Low Medium Medium High Medium High Cumulative Impact This is medium, based on the number of farm structures impacted but it is a new road development and the additional major road through the area will improve farmer access to markets and reduce traffic flow along the existing N3, for ease of use by farmers using and crossing this road. 58

82 Nature Extent Duration Intensity Reversibility Impact on Irreplaceable Resources Consequence Probability Significance Confidence N3: De Beers Pass Section Agricultural Economic Specialist Study June 2014 FINAL REPORT Operation Phase Impact on agriculture Impact Description: 15 farmers affected with 294 ha of agricultural land lost (108 ha cultivated, 186 ha of grassland) at an NPV of R 2.76 m, 7 employment opportunities 28 farm structures and 8 farm dam, 14,786 kg of livestock production potential lost per annum. : Educate the public on fire dangers through billboards, encourage stopping at designated areas, co-ordinate firebreak management with affected landowners with fire response team to assist farmers with fire controls. Without With Negative Medium High Medium Low Medium Medium High Medium High Negative Medium High Medium Low Medium Medium High Medium High Cumulative Impact This is medium, based on the number of farm structures impacted but it is a new road development and the additional major road through the area will improve farmer access to markets and reduce traffic flow along the existing N3, for ease of use by farmers using and crossing this existing road, therefore having a medium level of positive significance impact 59

83 Nature Extent Duration Intensity Reversibility Impact on Irreplaceable Resources Consequence Probability Significance Confidence Nature Extent Duration Intensity Reversibility Impact on Irreplaceable Resources Consequence Probability Significance Confidence N3: De Beers Pass Section Agricultural Economic Specialist Study June 2014 FINAL REPORT 16.3 Alternative A Section 1 Construction Phase Impact on agriculture Impact Description: 13 farmers affected with 177 ha of agricultural land lost (10 ha cultivated, 99 ha grassland, 41 ha thicket and bush, 16 ha forest and/or plantation and 10 ha of dongas & eroded areas) at an NPV of R 1.65 m, 4 employment opportunities and 1 farm dam, 49 t of grain and 11,089 kg of livestock production potential lost per annum. : Objective is to minimize impacts on high potential agricultural and forestry land by aligning routes away from these areas where feasible. None appear possible on this section. Make provision for cattle passes near van Reenen. Rebuild affected farm dam if still in use for cattle watering, educate construction workers on fire dangers and ensure secure areas for cooking fires, co-ordinate firebreak management with affected landowners with fire response team to assist farmers with fire controls. Agree underpasses/overpasses required to minimize farm fragmentation. Water construction roads during construction phase to minimize dust Without With Negative Medium Low Medium Low Medium Medium High Medium High Negative Low Low Low Low Medium Low High Low High Cumulative Impact This is medium to low, based on the extent of forest affected. The new road development will reduce risks of road closures along the existing van Reenen pass. Operation Phase Impact on agriculture Impact Description: 13 farmers affected with 177 ha of agricultural land lost (10 ha cultivated, 99 ha grassland, 41 ha thicket and bush, 16 ha forest and/or plantation and 10 ha of dongas & eroded areas) at an NPV of R 1.65 m, 4 employment opportunities and 1 farm dam, 49 t of grain and 11,089 kg of livestock production potential lost per annum. : Educate the public on fire dangers through billboards, encourage stopping at designated areas, co-ordinate firebreak management with affected landowners with fire response team to assist farmers with fire controls. Without Negative Medium High Medium Low Medium Medium High Medium High With Negative Low High Low Low Medium Low High Low High 60

84 Nature Extent Duration Intensity Reversibility Impact on Irreplaceable Resources Consequence Probability Significance Confidence Nature Extent Duration Intensity Reversibility Impact on Irreplaceable Resources Consequence Probability Significance Confidence N3: De Beers Pass Section Agricultural Economic Specialist Study June 2014 FINAL REPORT Cumulative Impact This is medium to low, based on the extent of forest affected. The new road development will reduce risks of road closures along the existing van Reenen pass Section 2 Construction Phase Impact on agriculture Impact Description: 10 farmers affected with 91 ha of agricultural land lost (all grassland) at an NPV of R0.41 m, 2 employment opportunities, 1 farm structure and 4 farm dams, 18 t of grain and 6,937 kg of livestock production potential lost per annum. : Compensate for any directly affected farm structure and redevelop the farm dams if they are still in use for cattle watering, ensure the cattle passes are retained, educate construction workers on fire dangers and ensure secure areas for cooking fires, co-ordinate firebreak management with affected landowners with fire response team to assist farmers with fire controls. Agree underpasses/overpasses required to minimize farm fragmentation. Water construction roads during construction phase to minimize dust Without With Negative Low Low Low Low Medium Low High Low High Negative Low Low Low Low Medium Low High Low High Cumulative Impact This is low as the road is near to the existing N3. Operation Phase Impact on agriculture Impact Description: 10 farmers affected with 91 ha of agricultural land lost (all grassland) at an NPV of R 0.41 m, 2 employment opportunities, 1 farm structure and 4 farm dams, 18 t of grain and 6,937 kg of livestock production potential lost per annum. : Educate the public on fire dangers through billboards, encourage stopping at designated areas, co-ordinate firebreak management with affected landowners with fire response team to assist farmers with fire controls. Without Negative Low High Low Low Medium Low High Low High With Negative Low High Low Low Medium Low High Low High Cumulative Impact This is low as the road is near to the existing N3. 61

85 Nature Extent Duration Intensity Reversibility Impact on Irreplaceable Resources Consequence Probability Significance Confidence Nature Extent Duration Intensity Reversibility Impact on Irreplaceable Resources Consequence Probability Significance Confidence N3: De Beers Pass Section Agricultural Economic Specialist Study June 2014 FINAL REPORT Section 3 Construction Phase Impact on agriculture Impact Description: 4 farmers affected with 212 ha of agricultural land lost (32 ha of cultivated, 220 ha grassland, 3 ha forest and/or plantation and 7 ha of urban/built up not included in the agricultural assessment) at an NPV of R 1.09 m, 5 employment opportunities, 2 farm structures, 152 t of grain and 9,849 kg of livestock production potential lost per annum. : Objective is to minimize impacts on high potential agricultural and forestry land by aligning routes away from these areas where feasible. None appear possible on this section. Compensate for any structures directly affected, educate construction workers on fire dangers and ensure secure areas for cooking fires, co-ordinate firebreak management with affected landowners with fire response team to assist farmers with fire controls. Agree with farmers on underpasses/overpasses required to minimize farm fragmentation. Water construction roads during construction phase to minimize dust Without With Negative Low Low Medium Medium Medium Medium High Medium High Negative Low Low Low Medium Medium Low High Low High Cumulative Impact This is low as the route is near to the existing N3 Operation Phase Impact on agriculture Impact Description: 4 farmers affected with 212 ha of agricultural land lost (32 ha of cultivated, 220 ha grassland, 3 ha forest and/or plantation and 7 ha of urban/built up not included in the agricultural assessment) at an NPV of R 1.09 m, 5 employment opportunities, 2 farm structures, 152 t of grain and 9,849 kg of livestock production potential lost per annum. : Educate the public on fire dangers through billboards, encourage stopping at designated areas, co-ordinate firebreak management with affected landowners with fire response team to assist farmers with fire controls. Without With Negative Low High Medium Medium Medium Medium High Medium High Negative Low High Low Medium Medium Low High Low High Cumulative Impact This is low as the route is near to the existing N3 62

86 Nature Extent Duration Intensity Reversibility Impact on Irreplaceable Resources Consequence Probability Significance Confidence Nature Extent Duration Intensity Reversibility Impact on Irreplaceable Resources Consequence Probability Significance Confidence N3: De Beers Pass Section Agricultural Economic Specialist Study June 2014 FINAL REPORT Section 4 Construction Phase Impact on agriculture Impact Description: 25 farmers affected with 478 ha of agricultural land lost (256 ha of cultivated, 220 ha grassland, 3 ha forest and/or plantation and 7 ha of urban/built up not included in the agricultural assessment) at an NPV of R 5.83 m, 5 employment opportunities, 2 farm structures, 1,222 t of grain and 17,448 kg of livestock production potential lost per annum. : Objective is to minimize impacts on high potential agricultural land by aligning routes away from these areas where feasible. None appear possible on this section. Compensate for directly affected structures, educate construction workers on fire dangers and ensure secure areas for cooking fires, co-ordinate firebreak management with affected landowners with fire response team to assist farmers with fire controls. Agree underpasses/overpasses required to minimize farm fragmentation. Water construction roads during construction phase to minimize dust Without Negative Medium Low Medium Low Medium Medium High Medium High With Negative Medium Low Medium Low Medium Medium High Medium High Cumulative Impact This is low, as the development is an upgrade and widening of the existing N3 new road development but requires extensive land take to accommodate access and crossover points. Operation Phase Impact on agriculture Impact Description: 25 farmers affected with 478 ha of agricultural land lost (256 ha of cultivated, 220 ha grassland, 3 ha forest and/or plantation and 7 ha of urban/built up not included in the agricultural assessment) at an NPV of R 5.83 m, 5 employment opportunities, 2 farm structures, 1,222 t of grain and 17,448 kg of livestock production potential lost per annum. : Educate the public on fire dangers through billboards, encourage stopping at designated areas, co-ordinate firebreak management with affected landowners with fire response team to assist farmers with fire controls. Without Negative Medium High Medium Low Medium Medium High Medium High With Negative Medium High Medium Low Medium Medium High Medium High Cumulative Impact This is low, as the development is an upgrade and widening of the existing N3 new road 63

87 Nature Extent Duration Intensity Reversibility Impact on Irreplaceable Resources Consequence Probability Significance Confidence Nature Extent Duration Intensity Reversibility Impact on Irreplaceable Resources Consequence Probability Significance Confidence N3: De Beers Pass Section Agricultural Economic Specialist Study June 2014 FINAL REPORT development but requires extensive land take to accommodate access and crossover points Alternative C Section 1 Construction Phase Impact on agriculture Impact Description: 4 farmers affected with 37 ha of agricultural land lost (13 ha cultivated, 15 ha grassland, 9 ha thicket and bush) at an NPV of R 0.35 m, 1 employment opportunity and, 64 t of grain and 1,894 kg of livestock production potential lost per annum. : Objective is to minimize impacts on high potential agricultural land by aligning routes away from these areas where feasible. None appear possible on this section. Ensure existing cattle passes are retained. Educate construction workers on fire dangers and ensure secure areas for cooking fires, co-ordinate firebreak management with affected landowners with fire response team to assist farmers with fire controls. Agree access and service roads and any underpasses / overpasses required to minimize farm fragmentation. Water construction roads during construction phase to minimize dust Without With Negative Low Low Low Low Medium Low High Low High Negative Low Low Low Low Medium Low High Low High Cumulative Impact This is low as this is a widening of the existing N3 Operation Phase Impact on agriculture Impact Description: 4 farmers affected with 37 ha of agricultural land lost (13 ha cultivated, 15 ha grassland, 9 ha thicket and bush) at an NPV of R 0.35 m, 1 employment opportunity and, 64 t of grain and 1,894 kg of livestock production potential lost per annum. : Educate the public on fire dangers through billboards, encourage stopping at designated areas, co-ordinate firebreak management with affected landowners with fire response team to assist farmers with fire controls. Without Negative Low High Low Low Low Low High Low High 64

88 Nature Extent Duration Intensity Reversibility Impact on Irreplaceable Resources Consequence Probability Significance Confidence Nature Extent Duration Intensity Reversibility Impact on Irreplaceable Resources Consequence Probability Significance Confidence N3: De Beers Pass Section Agricultural Economic Specialist Study June 2014 FINAL REPORT With Negative Low High Low Low Low Low High Low High Cumulative Impact This is low as this is a widening of the existing N Section 2 Construction Phase Impact on agriculture Impact Description: 8 farmers affected with 89 ha of agricultural land lost (2 ha cultivated, 87 ha, 1 ha thicket & bush) at an NPV of R 0.37 m, 2 employment opportunities 1 farm dam, 8 t of grain and 6,942 kg of livestock production potential lost per annum. : Rebuild any farm dam if in use, educate construction workers on fire dangers and ensure secure areas for cooking fires, coordinate firebreak management with affected landowners with fire response team to assist farmers with fire controls. Agree underpasses/overpasses required to minimize farm fragmentation. Water construction roads during construction phase to minimize dust Without With Negative Low Low Low Low Medium Low High Low High Negative Low Low Low Low Medium Low High Low High Cumulative Impact This is low as this is a widening of the existing N3 Operation Phase Impact on agriculture Impact Description: 8 farmers affected with 89 ha of agricultural land lost (2 ha cultivated, 87 ha, 1 ha thicket & bush) at an NPV of R 0.37 m, 2 employment opportunities 1 farm dam, 8 t of grain and 6,942 kg of livestock production potential lost per annum. : Educate the public on fire dangers through billboards, encourage stopping at designated areas, co-ordinate firebreak management with affected landowners with fire response team to assist farmers with fire controls. Without Negative Low High Low Low Medium Low High Low High With Negative Low High Low Low Medium Low High Low High 65

89 Nature Extent Duration Intensity Reversibility Impact on Irreplaceable Resources Consequence Probability Significance Confidence Nature Extent Duration Intensity Reversibility Impact on Irreplaceable Resources Consequence Probability Significance Confidence N3: De Beers Pass Section Agricultural Economic Specialist Study June 2014 FINAL REPORT Cumulative Impact This is low as this is a widening of the existing N Section 3 Construction Phase Impact on agriculture Impact Description: 4 farmers affected with 129 ha of agricultural land lost (14 ha of cultivated, 60 ha grassland, 55 ha forest and/or plantation) at an NPV of R 3.54 m, 3 employment opportunities, 1 farm structure, 3 farm dams, 68 t of grain and 4,745 kg of livestock production potential lost per annum. : Objective is to minimize impacts on high potential agricultural and forestry land by aligning routes away from these areas where feasible. None appear possible on this section. Rebuild affected farm dam if still in use for cattle watering, compensate for any structures directly affected, educate construction workers on fire dangers and ensure secure areas for cooking fires, co-ordinate firebreak management with affected landowners with fire response team to assist farmers with fire controls. Agree with farmers on underpasses/overpasses required to minimize farm fragmentation. Water construction roads during construction phase to minimize dust Without Negative Low Low Medium Medium Medium Medium High Medium High With Negative Low Low Low Medium Medium Low High Low High Cumulative Impact This is low as this is a widening of the existing N3 Operation Phase Impact on agriculture Impact Description: 4 farmers affected with 129 ha of agricultural land lost (14 ha of cultivated, 60 ha grassland, 55 ha forest and/or plantation) at an NPV of R 3.54 m, 3 employment opportunities, 1 farm structure, 3 farm dams, 68t of grain and 4,745 kg of livestock production potential lost per annum. : Educate the public on fire dangers through billboards, encourage stopping at designated areas, co-ordinate firebreak management with affected landowners with fire response team to assist farmers with fire controls. Without With 66 Negative Low High Medium Medium Medium Medium High Medium High Negative Low High Low Medium Medium Low High Low High

90 Nature Extent Duration Intensity Reversibility Impact on Irreplaceable Resources Consequence Probability Significance Confidence Nature Extent Duration Intensity Reversibility Impact on Irreplaceable Resources Consequence Probability Significance Confidence N3: De Beers Pass Section Agricultural Economic Specialist Study June 2014 FINAL REPORT Cumulative Impact This is low as this is a widening of the existing N Section 4 Construction Phase Impact on agriculture Impact Description: 25 farmers affected with 478 ha of agricultural land lost (256 ha of cultivated, 220 ha grassland, 3 ha forest and/or plantation and 7 ha of urban/built up not included in the agricultural assessment) at an NPV of R 5.83 m, 5 employment opportunities, 2 farm structures, 1,222 t of grain and 17,448 kg of livestock production potential lost per annum. : Objective is to minimize impacts on high potential agricultural land by aligning routes away from these areas where feasible. None appear possible on this section. Rebuild affected farm dams if still in use for cattle watering, compensate for directly affected structures, educate construction workers on fire dangers and ensure secure areas for cooking fires, co-ordinate firebreak management with affected landowners with fire response team to assist farmers with fire controls. Agree underpasses/overpasses required to minimize farm fragmentation. Water construction roads during construction phase to minimize dust Without With Negative Medium Low Medium Low Medium Medium High Medium High Negative Medium Low Medium Low Medium Medium High Medium High Cumulative Impact This is medium, based on the extent of arable farmland impacted. Operation Phase Impact on agriculture Impact Description: 25 farmers affected with 478 ha of agricultural land lost (256 ha of cultivated, 220 ha grassland, 3 ha forest and/or plantation and 7 ha of urban/built up not included in the agricultural assessment) at an NPV of R 5.83 m, 5 employment opportunities, 2 farm structures, 1,222 t of grain and 17,448 kg of livestock production potential lost per annum. : Educate the public on fire dangers through billboards, encourage stopping at designated areas, co-ordinate firebreak management with affected landowners with fire response team to assist farmers with fire controls. Without Negative Medium High Medium Low Medium Medium High Medium High With Negative Medium High Medium Low Medium Medium High Medium High 67

91 Nature Extent Duration Intensity Reversibility Impact on Irreplaceable Resources Consequence Probability Significance Confidence Nature Extent Duration Intensity Reversibility Impact on Irreplaceable Resources Consequence Probability Significance Confidence N3: De Beers Pass Section Agricultural Economic Specialist Study June 2014 FINAL REPORT Cumulative Impact This is medium, based on the extent of arable farmland impacted Do Nothing Section 1 With the do nothing approach there is no construction phase, only operational Operation Phase Impact on agriculture Impact Description: Use of road will become increasingly dangerous to slow moving agricultural equipment as traffic volumes increase. : Educate the public on fire dangers through billboards, encourage stopping at designated areas, co-ordinate firebreak management with affected landowners with fire response team to assist farmers with fire controls. Without Neutral Medium High Low Medium Low Low High Low Medium With Neutral Medium High Low Medium Low Low High Low Medium Cumulative Impact This is low, as the existing road remains available for use by agriculture but at increased use due to traffic volume growth but can be reversed through developing an alternate or widening the existing route Section 2 Impact on agriculture Impact Description: Use of road will become increasingly dangerous to slow moving agricultural equipment as traffic volumes increase. : Educate the public on fire dangers through billboards, encourage stopping at designated areas, co-ordinate firebreak management with affected landowners with fire response team to assist farmers with fire controls. Without Neutral Medium High Low Medium Low Low High Low Medium With Neutral Medium High Low Medium Low Low High Low Medium Cumulative Impact This is low, as the existing road remains available for use by agriculture but at increased use due to traffic volume growth but can be reversed through developing an alternate or widening the existing route. 68

92 Nature Extent Duration Intensity Reversibility Impact on Irreplaceable Resources Consequence Probability Significance Confidence Nature Extent Duration Intensity Reversibility Impact on Irreplaceable Resources Consequence Probability Significance Confidence N3: De Beers Pass Section Agricultural Economic Specialist Study June 2014 FINAL REPORT Section 3 Construction Phase Impact on agriculture Impact Description: Use of road will become increasingly dangerous to slow moving agricultural equipment as traffic volumes increase. : Educate the public on fire dangers through billboards, encourage stopping at designated areas, co-ordinate firebreak management with affected landowners with fire response team to assist farmers with fire controls. Without Neutral Medium High Low Medium Low Low High Low Medium With Neutral Medium High Low Medium Low Low High Low Medium Cumulative Impact This is low, as the existing road remains available for use by agriculture but at increased use due to traffic volume growth but can be reversed through developing an alternate or widening the existing route Section 4 Operational Phase Impact on agriculture Impact Description: Use of road will become increasingly dangerous to slow moving agricultural equipment as traffic volumes increase. : Educate the public on fire dangers through billboards, encourage stopping at designated areas, co-ordinate firebreak management with affected landowners with fire response team to assist farmers with fire controls. Without With Neutral Medium High Low Medium Low Low High Low Medium Neutral Medium High Low Medium Low Low High Low Medium Cumulative Impact This is low, as the existing road remains available for use by agriculture but at increased use due to traffic volume growth but can be reversed through developing an alternate or widening the existing route. Along this section the level of cropping requires the use of the existing road by agricultural equipment, which will increase risks as traffic volumes increase 69

93 17. CONCLUSION Agriculture is a strategic industry and all attempts should be made to either avoid negative impacts on high potential arable lands and or mitigate negative impacts wherever possible. NPV Losses to the affected landowners are quantified using an aggregation methodology for the purpose of route comparison but remain an estimate. In calculating an individual s loss in potential earnings each case should be taken on merit as management, enterprise mix and pricing scenarios differ between owners. Applying a weighted average index method across a number of key measures of impact in a matrix results the DBPR as the route of least impact, followed by DBPR Deviation 4, Alt. C and Alt. A, that with the greatest negative agricultural impact. In addition the farmers along the DBPR could benefit through improved road access to an estimated total potential number of transport trips of 2,115 to move agricultural produce to market. In terms of the do nothing approach in the longer term, with increased traffic the risks to agriculture will increase with the eventual need at a future date being a greater cost and therefore not a desirable option. 70

94 18. BIBLIOGRAPHY S Adey, D C Kotze, F H J Rijkenberg. Small scale farming in KwaZulu-Natal: Experience from some promising pockets. Essay published in Jan Douwe van der Ploeg. Seeds of transition: essays on novelty production, niches and regimes in agriculture. Uitgeverij Van Gorcum, 2004 C Coetzee. IGR Unit, Provincial Treasury. The KwaZulu-Natal Economy A performance overview update August Statistics SA. Census of Agriculture Provincial Statistics 2002 KwaZulu-Natal. Report No (2002) Statistics SA. Census of Agriculture Provincial Statistics 2002 Free State. Report No (2002) SAinfo reporter, incorporating material from the South African Yearbook. accessed14 March 2011 MPO. Lactodata Statistics, vol 13 no. 1 May 2010 Statistics SA. Census of Agriculture Provincial Statistics Report No (2002) Wikipedia, accessed 18 March 2011 E N C Whitehead, G Archer. The State of Agriculture in KZN, DAE&RD, 2010 K Camp. The Bioresource groups of KwaZulu-Natal, Natural Resource Section, DAE&RD. Report No. N/A/97/ Statistics South Africa. Census of commercial agriculture 2007 (Preliminary. Statistical release P February 2009 James Kobzeff. How real estate net present value works, undated html, accessed 22 March 2011 StatsSA. South African Statistics 2004/ Phatisa. Agricultural Economic Specialist Report, EIA for te proposed Venus-Sigma-Hector transmission line project, October 2010 Senwes. SAFEX daily Market Report, 25 March 2011, accessed 27 March 2011 H I Behrmann (editor). Farm Land Valuation, Department of Agricultural Economics, University of KwaZulu-Natal Minister of Public Works, Republic of South Africa. Expropriation Bill, 11 April ISBN

95 TELEPHONE INTERVIEWS Person Company/Institution Phone Jaco Heckroodt VKB : Landbou-ekonomiese dienste Jacoh@VKB.co.za Isak Krause Nestle : Harrismith: Landboukundige dienste George Harrismith Distrik Boere Unie Galloway Barend Human Warden Distrik Boere Unie Jan-Carel Coetzee Warden Distrik Boere Unie janccoetzee@omnia.co.za QUESTIONNAIRE RESPONDENTS Name Contact number Farm name Andrew Green andrew@kleinfonteinfarm.co.za Lincolin E.H. Noares roland@inyamazane.co.za Oupaskraal Martin Camphor keeversfontein@gmail.com Keeversfontein R.C.Henderson roland@inyamazane.co.za Strathmorn Lester Miller lester@tyron.co.za Brinley D.J.J.Cilliers Fairview Johannes Boshoff johannes.boshoff@gmail.com Carthorpe Theuns De Jager janejag@gmail.com Maritzdrift Flip De Jager janejag@gmail.com Welkom Cornell Campher cornell.landi@gmail.com Zandspruit JF Campher Waterval Herculus Ferreira Leeubank SK Minnaar Schaaplaas & Others Hartman Corver info@tgcorver.co.za Alma & Almako MPJ van Rooyen Burlesca, Leeuwbank, etc Andrew Ferreira Carbuttdene Gerrit Steyn gerrit@paulsteynboerdery.co.za Paul Steyn Boerdery Gert AJ Loggerberg gert1@megawifi.co.za Gedachtenis MJ van Zyl mmmvz@gmail.com The Mills JIJ Bosch jijbosch@megawifi.co.za Broedersdal Clan Leslie Estates nick@clanleslie.co.za Heritage, De Villiers, Hill Cottage, Ebenhaeser, Elon, Wildeboerlaagte, Cyprus, Bucklanddowns, Scarlet, Droogebult, De Rust 2

96 19. ANNEXURE A Locality map Figure 2: Locality map showing the proposed route alignments 20. ANNEXURE B FARM BOUNDARIES 1

97 Annexure B1: Map showing Keeversfontein, Van Reenen and De Beers Pass areas. (Note map at scale of approx 1: ) Annexure B2: Map showing Van Reenen to Harrismith section. (Note map at scale of approx 1: ) Annexure B3: Map showing Harrismith to Eeram section. (Note map at scale of approx 1: ) 2

98 Annexure B4: Map showing Eeram & Balmoral to Somemore section. (Note map at scale of approx 1: ) Annexure B5: Map showing Somemore to Sydenham section. (Note map at scale of approx 1: ) 3

99 Annexure B5: Map showing Sydenham to Warden section. (Note map at scale of approx 1: ) Annexure B6: Map KZN border to Alexpan section. (Note map at scale of approx 1: ) 4

100 Annexure B7: Map showing Alexpan to Buckland Downs section (Note map at scale of approx 1: ) Annexure B8: Map showing Buckland Downs to Warden section. (Note map at scale of approx 1: ) 5

101 Annexure B9: Map showing Lincoln Verkykerskop area. (Note map at scale of approx 1: ) 6