The Expropriation Bill poses an existential threat to South African food security
[{“type”:”text”,”content”:”At its heart, this expropriation Bill undermines the property rights protected in the Constitution. In particular, the goal of normalising nil compensation for expropriation (as the current version of the Bill does in sections 12(3) and 12(4), together with an inappropriately narrow definition of expropriation) will fundamentally alter the property rights foundation on which our economy is built. Even our Constitution u2013 crafted to right the wrongs of history u2013 only allows for nil compensation in limited cases subject to the courtu2019s jurisdiction. This framing recognises the norm of compensation while allowing for expropriation without compensation in exceptional instances that merit this radical intervention as a method of last resort. The consequences of nil compensation will not just materially and negatively impact farmers and land owners; there will also be a cascading range of impacts to the detriment of the broader economy and, ultimately, society.nnThe most destructive consequence of the Bill will be to undermine food security. Agriculture is a cyclical sector. At the bottom of the cycle, which can last up to several years, farmers rely on secured loans to access the operating capital that pays staff wages and input costs. Loans are also needed to finance capital expenditures. The most valuable asset against which farmers can borrow is their land. But when land is liable to be expropriated without compensation, banks will be reluctant to accept the title as a reliable form of security for loans, significantly impacting farmersu2019 ability to manage farms productively and cultivate the food we so rely on.”,”position”:0,”id”:”3qYtzldrqC6snF5A”}]