Farm sector losses

The Commercial Farmers' Union (CFU) said this week farm output worth more than US $131.6 million would be lost in the initial phase of the accelerated land resettlement plan under which the government will seize 841 farms for the immediate resettle-ment of rural peasants.

President Mugabe, under pressure to fast-track the much-delayed land plan, last week invoked temporary presidential powers to amend the Land Acquisition Act so it allows the government to seize farms and defer payment of compensation for improvements made on the land, 'The Financial Gazette' reported on Thursday.

The measures also allow the government to pay compensation in bonds rather than in cash. Compensation will not be paid for the actual land itself. CFU president Tim Henwood said this week: "As the accelerated programme does not envisage providing any infrastructure to people being resettled other than the availability of water, it must be assumed that in the initial phase at least production will be at subsistence levels. It is therefore assessed that the net loss in production will initially be in excess of $5 billion Zimbabwe dollars (US 131.6 million)."