The Sunday News
Dumisani Nsingo Senior Farming Reporter
FARMERS who are into cattle ranching have raised concern over being subjected to the payment of same rentals and development levies as those that are into crop production as their returns accrue after a lengthy period. Last year, the Government gazetted rentals and development levies payable by farmers on resettled land expropriated from former commercial farmers, mostly white owners. The move was made in terms of the Finance Act.
Farmers on A1 farms, are obliged to pay a rental levy of $10 per year and a development levy of $5 annually per farm.
A2 farmers, who occupy the bigger-sized farms are meant to pay a rental levy of $3 per hectare per year and a development levy of $2 per hectare per year per farm.
Most of the 300 000 newly resettled farmers that got land under the Government’s land reform programme are occupying A1 farms. Mangwe Farmers Association chairman Mr Adam Bango Dube said it was imperative for the Government to consider reviewing farm rentals and development levies for farmers that are into livestock production as it took a longer time for their animals to mature for marketing compared to crops.
“Self-contained and A2 farmers are subjected to paying $5 per hectare. This is a bit on the expensive side especially for those that are into livestock production. What it means is that one with 500 hectares is obliged to pay $2 500 per year and yet on that same piece of land you can only keep 50 to 100 cattle and work for at least five years to sell an animal.
“We need to engage the relevant authorities to see how this can be addressed because surely we can’t have those that are into livestock production being subjected to the same fees as those that are into cropping. In crop production you produce quite a lot on a small piece of land while you need vast land for animal husbandry,” Mr Dube said.
Zimbabwe Commercial Farmers Union Matabeleland North chairman Mr Winston Babbage said although the payment of rentals and development levies was welcome it was a bit expensive stating that there was a need to review it.
“The rentals and levies are not only high to those that are into ranching but even those that are into crop production. Of course we understand that part of the funds will be used to compensate the farmers that were evicted during the land reform which is a noble idea.
“Part of levies are supposed to go to the rural district councils for infrastructural development, which they have over the years been failing to do and we doubt if it will be put towards that course because they have been getting a number of levies but nothing has been done towards improving infrastructure,” said Mr Babbage.
The development levies are supposed to be used to fund development projects such as gully reclamation and works related to soil conservation; provision, operation and maintenance of hospitals, clinics, dispensaries, schools, educational facilities and other related amenities; provision and maintenance of dipping tanks; and provision and maintenance of roads.
Mr Babbage said the rentals and levies should be pegged to ensure that farmers’ agricultural enterprises remain viable and profitable even in times of calamities such as droughts.
“For instance the rentals for A2 farms should be dropped from $3 to $2 per hectare while the development levy should be a $1 instead of $2. It should be taken into consideration that we sometimes experience drought and this negatively affects our agricultural enterprises with those that are into livestock production being forced to buy stock feed due to depleted pastures and this among other costs such as disease prevention makes it difficult for farmers to afford payment of these levies,” he said.
Farmers in Matabeleland region are the hardest hit by the farm rentals and development levies. The region of Matabeleland is characterised by lower rainfall compared to provinces such as those in Mashonaland, and is plagued by water scarcity in general.
The land is also less fertile than other provinces, as commercial crops cannot be grown and rural farmers usually cannot produce enough maize to feed their families.
However, Lands and Rural Resettlement Minister Dr Douglas Mombeshora vehemently stated that the Government was not going to review the farm rentals and development asserting that the call for their reduction was only being clamoured by a “few bad apples” notable the unproductive lot.
“There is no going back on those gazetted rentals and development levies. There won’t be reviewed at all. The issue was debated on thoroughly before being implemented and those that are calling for the review are a few individuals. Those who don’t want can return us the land. They are a lot of people who want land for production purposes,” he said.
