Rikus Grobler | Feb 8, 2018 | 0
RDP disappointed with land prices
The Rally for Democracy and Progress (RDP)’s Land, Agriculture and Food Security committee has called for the introduction of a Land Price Control Act in absence of agro-ecological zoning as well as for mechanisms to ensure that the current high demand for land does not distort land prices.
Expressing disappointment with the willing seller, willing buyer principle, Rudolph Kamburona, secretary of Land, Agriculture and Food Security in the party, said in a press statement that the principle has resulted in sellers charging high prices for their farms and in turn increase the difference that buyers are required to pay in addition to the Agribank valuation price.
He said that measures should be explored, amongst others a price control mechanism, requiring stakeholders in the transaction to agree on a price and the difference must be included in the price if there is any.
According to Kamburona, a land price ceiling based on ecological zoning or other scientific measure, could be considered.
He further said, reverting to the pre 1988 measures in which the state only paid for land based on its Agricultural value and not necessarily on the market value should be explored.
“Re introduce alternatively the 35% government guarantee on the Affirmation Action Loan Scheme because it has hampered progress for disadvantaged farmers to acquire commercial land. The 35% guarantee was the thrust for formerly disadvantaged communal farmers to be able to put down a minimal but yet substantial contribution to the asking price,” he said.