Institutional dynamics in Tugela Ferry irrigation scheme

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1 Institutional dynamics in Tugela Ferry irrigation scheme Ben Cousins DST/NRF Chair Institute for Poverty, Land and Agrarian Studies (PLAAS) University of the Western Cape

2 Policy context New Growth Path: Agriculture = a key sector for employment creation Create smallholder opportunities by 2020 Increase their incomes by securing participation in higher value commodity chains Address weaknesses in land reform programme National Development Plan: Create 1 million new jobs in agriculture, especially from smallholders, expanded irrigation, new labour-intensive crops Fix land reform through decentralised, district-based negotiation and support

3 Smallholder farming and rural livelihoods in SA Small-scale agriculture: smallholders & medium-scale commercial farmers 2 million semi-subsistence farming households (Aliber et al from Labour Force Surveys) Rural livelihoods: Most rural households engage in agriculture on a very small scale Sales of farm products are main income source for only 3.7% of rural hh with access to land (GHS 2006) Most depend on social grants, wage employment, remittances, and small informal sector enterprises

4 Agrarian structure in SA: a missing middle? Small-scale market-oriented farming * Small numbers ( ) * Some marketed output Large scale commercial farming Very small scale subsistence farming * Small numbers (37 000) * Large farms * 90% marketed output * Large numbers (2 million) * Small plots * Little marketed output

5 Accumulation pathways: which should policies direct resources to? Accumulation from above? Accumulation from below? Emerging BEE commercial farmers Petty commodity producers & small-scale capitalist farmers Large scale (white) commercial farmers Subsistence farmers and enhanced food security

6 Tugela Ferry Irrigation Scheme Msinga, KZN

7 Gravity-fed canal& furrow irrigation

8 Green mealies: the earliest in KZN

9 Crops grown Maize: 90% (of farmers) Sweet potatoes: 73% Tomatoes: 64% Spinach: 50% Beans: 38% Cabbages: 34% Potatoes 28% Onions: 23%

10 Tugela Ferry Irrigation Scheme Constructed in early 20 th century Total area = 837ha, in 7 different blocks (one not used) Area under cultivation = 540 ha Supplied from weir on Tugela River by a canal 31 kms in length Gravity-fed,but main canal leaking badly Government currently investing R20+ million in repairs Blocks 4 and 7 use pumps to extract water from river Estimated producers Mean bed size = 0.11 ha Mean no. of beds/producer = 3.37 (0.4 ha, or 1 acre)

11 Socially embedded irrigation farming Gendered : minimum of one female member engaged in farming in 92% of households (vs males = 24%) Borrowing or renting of beds: 42% borrow or rent between 1 & 9 beds (mean = 2.1) Ownership of beds acquired through application to traditional leaders, or inheritance No. of crop types grown: mean = 4.4 Ownership of agricultural assets (hoes, etc): 60% own 1-5; 32% own 6 or > Ownership of knapsack sprayers: 37%

12 Productivity and profitability (106 crop record sheets) Crop Growers making a profit Profit makers as % of growers Positive gross margin (mean) Positive gross margin (median) Range Maize 30 91% R1439 R1344 R208 R2916 Tomatoes 12 46% R3166 R3545 R17 R7163 Sweet potato 16 73% R1172 R1243 R240 R2785 Cabbages 5 56% R3840 R4450 R All four crops 64 71% R1868 R1367 R17 R7163

13 Crop Growers making a loss Loss makers as % of growers Negative gross margin (mean) Negative gross margin (median) Range Maize 3 9% R340 R106 R208 R2916 Tomatoes 14 54% R790 R782 R15 R898 Sweet potatoes 6 27% R300 R355 R9 R1790 Cabbages 4 44% R300 R355 R410 R997 All four crops 26 29% R644 R577 R9 R1790

14 Estimated annual incomes from farming Assuming net gross margin of R783 per crop, from four plots, growing an average of two crops per annum, the mean annual gross margin per farmer is R6 270, or R per ha. Larger and generally successful producers, who are more likely to grow lucrative but risky crops, have the potential to earn considerably more Assuming a positive gross margin of R1500 per crop from six plots and two crops per annum, such a famer could earn an annual gross amrgin of R18 000, or R per ha

15 Income sources for irrigation farming households (n = 171) Households with members who: % of households Are employed in permanent jobs 37 % Are employed in temporary jobs 26 % Are self-employed, employ others 5 % Are self-employed, do not employ others 7 % Receive an old age pension 48 % Receive a child support grant 71 % Receive remittances 15 %

16 Block committees Comprise 7 members, to be elected at regular intervals (every 5 years) In practice: elections can be irregular; most committees barely function Responsibilities: call meetings of farmers for extension services; attend meetings with extension officers; pass on information from extension officers to farmers; assist in formation of co-operatives; help resolve conflicts between farmers (e.g. over water, boundaries of beds) Blocks 4 & 7: collect funds (R15/plot/month) to pay ESKOM electricity bill for pumps

17 Problems faced by block committees Farmers disillusioned with committees & extension services: unfulfilled promises discourage people ; one of our big problems is poor communication from government officials Accusations that funds collected from farmers have been squandered Jealousy from farmers when committee members perceived to be favoured by extension officials (e.g. distribution of free seeds) Committee of Block 4 not been subject to re-election for a long time; suspicions by some farmers that they receive preferential treatment in re-allocation of unused plots Being a committee member is costly (transport, phone calls, time away from plots)

18 Extension services in the past (days of GG and ZG) Active in transferring information and skills & often on farmer s plots Helped identify crop diseases Organized demonstration plots (isobonele) Assisted in bulk purchase of inputs and joint marketing Monitored plot use and recommended reallocation if unused Ensured that the area around the beds was kept clean

19 Extension services today: farmer perceptions No longer visit farmers on their plots ( in their offices all the time ) Unable to help with disease outbreaks Rarely call meetings, but did so recently with new potato variety Occasionally assist farmers to purchase and transport seedlings from distant nurseries, or in acquiring other inputs in bulk Assist in accessing tractor hire services (recently: free tractors but unreliable) Active recently in promoting co-ops, but many problems Not accountable to farmers for poor performance

20 Collective action: water allocation Each block allocated certain days when they can take water from the canal In the past government used to pay water wardens ( police, iphoyisa); only one now, in Block 4, others retired Iphoyisa organises a daily schedule ( queue ) after farmers indicate their needs; cleaning of canal and furrows; helps resolve conflicts over water No new wardens appointed since 1994, when responsibility for scheme was devolved to community/ farmers/ chief Blocks 1-3: queuing for water now self-organized by farmers; works well most of the time; conflicts fairly common, but resolved among themselves

21 Collective action: repair and maintenance of canal & fencing around the scheme In past, the responsibility of government - paid for all materials Groups of farmers would be organized to work on different sections of the canal Today, cleaning out of mud once a year by groups of farmers (i.e. self-organized) Block 2 respondent: if you can t send someone, you must pay R20 for food for the group Some maintenance & repair beyond capacities of farmers (fencing materials, cement, or where canal goes underground)

22 Collective action: joint purchase of inputs Most common with seedlings, often assisted by extension officials Occasionally occurs with fertilizers and chemicals ( if we approach extension officers for help; usually in a small group e.g. of 5 farmers ) Chair of Block 2 committee: I always tell people to buy mealie seeds early because the price goes up around planting time, but they do not respond. It is very helpful to buy as a group because you get more for your money, and one is guaranteed to get the right cultivar

23 Collective action: crop marketing Difficult for farmers to undertake; they try to cultivate arrangements with individual crop buyers (but often quite loose, can fall away) Negative experiences with the pack-house model: low prices paid ( 50% of prices paid by bakkie traders ) or produce not sold & rotted Farmers paid R50 each which was wasted Recently, co-ops and contracts with hospitals were strongly promoted No positive experiences as yet: inaccurate information, high joining fee (R50 each), no contracts successfully negotiated

24 Constraints on collective action: a farmer s view How do people with different numbers of beds per person plan their planting such that the supply is adequate all year round. People mighty not all agree to be part of the contract plans. Let us say the co-op has 5 to 6 members with varying number of plots per person. The hospital might want to be supplied with a variety of crops that the group cannot produce on their limited beds (Ms Khuzwayo) i.e. scale constraints + unequal land holdings

25 Explaining constraints on collective action: theory Sociology/Anthropology: time-constrained, improvised farming/livelihood system, operated mainly by women responsibilities for social reproduction, within a gendered division of homestead labour Political economy of agrarian change: fragmentation of classes of rural labour plus inequality/differentiation Institutional economics: transaction costs too high without effective local institutions

26 Conclusions A productive scheme that supports the livelihoods of hundreds of the rural poor Explaining success: flexible, informal land rental market facilitates intensity of use; labour in plentiful supply; fertile soils; cheap access to farmgate market Constraints: poorly maintained infrastructure; inefficient water supply; undifferentiated fresh produce markets; socially embedded land rental market constrains social differentiation & accumulation Accumulation from below? Needs additional land and water e.g. at Tugela Estates, 15 kms upstream, or on redistributed land (i.e. agrarian reform)

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