Farming uncertainty continues

The future of commercial farming in Zimbabwe faced further uncertainty on Monday as about 100 estate owners went to court to fight for the right to remain on their land instead of leaving to make way for a wave of new farmers to be settled. On 9 August 2,800 farmers were meant to leave their land under the terms of controversial land reform laws which aim to transfer land ownership from white farmers to underprivileged black settlers. It also became a crime for commercial farmers to continue tending their crops or feeding their cattle. Jenni Williams, spokeswoman for pressure group Justice for Agriculture (JAG) told IRIN that about 100 farmers appeared in courts around the country on Monday to challenge the order that they stop farming. The outcome ranged from farmers being fined and allowed to return to farming, to farmers being told they must leave. The farmers are using a range of technicalities including that farms still being paid off may not come under the acquisition programme without informing the bond-holding bank - a condition that has not always been met. Zimbabwe's land reform programme is being pursued against the backdrop of a food crisis affecting six million Zimbabweans - half the population. According to JAG's website, cereal production had dropped 57 percent compared to last year - with doubt cast over the fate of the US $330 million crop still in grading sheds - and maize production had fallen by 67 percent. Economist John Robertson told IRIN that current uncertainly surrounding the future of farming placed the country's billion dollar tea, coffee, sugar, flower and vegetable export markets at risk. He said that almost 95 percent of the country's commercial farmland was affected by the land reform programme and added that even the remaining five percent may eventually come under the spotlight. Robertson said the full extent of the impact on farming and the economy would only be known in a few months' time as it became clearer which farmers would be leaving their land. With the land reform law forcing "Section 8" farmers to down tools, crops like tea and tobacco which need ongoing post-harvest processing, could be ruined, losing farmers millions in income. Banks also faced an uncertain future with the risk of farmers not making bond repayments and this would adversely affect the country's international credit rating. He said the government had so far not provided promised agricultural inputs for the incoming farmers, and they could be too great a credit risk for the already wary banks to lend them the cash they need to get started. "The banks are currently badly exposed to debt from the commercial farmers and the new owners (the government) won't pay. The banks will have to write this off as bad debt which is dangerous for their long term survival." "The economy is very involved and intricate and it will all fall in a heap if anything goes wrong," he said. IRIN was unable to get official comment on the land reform process.