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Perceptions Of Farm Worker Equity-Share Schemes In South Africa

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  • Knight, SL
  • Lyne, MC

Abstract

Farm worker equity-share schemes have received both positive and negative publicity since they were initiated by the private sector in the early 1990’s. This paper adds to the debate surrounding these land reform projects. In particular, it compares the results of case studies conducted by the Surplus People’s Project (SPP) in 1998 with more recent (2001) case studies. The latter suggest that many of the concerns raised by the SPP, such as beneficiaries’ participation and expectations, power relations between management and worker-shareholders, skills transfer and labour relations have been addressed. The paper also highlights those issues that remain areas of concern, for example, beneficiaries’ tenure security, literacy levels amongst worker shareholders, skill and wage differences between men and women, and exit procedures. It is recommended that Department of Land Affairs (DLA) grants should be awarded only to beneficiaries of projects that have been co-financed by a bank or reputable investor as this ensures a thorough financial assessment of the project, and only to projects that can demonstrate a history of good labour relations. It is also recommended that the DLA should consider extending its grants to regular but seasonal farm workers who wish to participate in an established project. While fam worker equity-share schemes may not provide all the answers to land reform they have an important role to play in redistributing wealth and deracialising commercial agriculture in South Africa.

Suggested Citation

  • Knight, SL & Lyne, MC, 2002. "Perceptions Of Farm Worker Equity-Share Schemes In South Africa," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 41(4).
    • Handle: RePEc:ags:agreko:246004
    DOI: 10.22004/ag.econ.246004
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    References listed on IDEAS

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    1. Kirsten, J. F. & van Rooyen, J. & Ngqangweni, S., 1996. "Progress With Different Land Reform Options In South Africa," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 35(4), December.
    2. Michael L. Cook & Constantine Iliopoulos, 2000. "Ill-defined property rights in collective action: the case of US agricultural cooperatives," Chapters, in: Claude Ménard (ed.), Institutions, Contracts and Organizations, chapter 22, Edward Elgar Publishing.
    3. Andrew Graham & Mark AgDarroch, 2001. "Relationship between the mode of land redistribution, tenure security and agricultural credit use in KwaZulu-Natal," Development Southern Africa, Taylor & Francis Journals, vol. 18(3), pages 295-308.
    4. Claude Ménard (ed.), 2000. "Institutions, Contracts and Organizations," Books, Edward Elgar Publishing, number 1921, August.
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    Cited by:

    1. Ortmann, Gerald F., 2005. "Promoting the competitiveness of South African agriculture in a dynamic economic and political environment," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 44(3), pages 1-35, September.
    2. Wynne, Adrian T. & Lyne, Michael C., 2004. "Rural economic growth linkages and small scale poultry production: A survey of producers in KwaZulu-Natal," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 43(01), pages 1-21, March.
    3. Lyne, Michael C. & Ferrer, Stuart R.D., 2006. "Farmland transfers in KwaZulu-Natal, 1997-2003: A focus on land redistribution including restitution," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 45(3), pages 1-18, September.
    4. Gray, B.C. & Lyne, Michael C. & Ferrer, Stuart R.D., 2005. "Criteria to monitor the poverty alleviation, empowerment and institutional performance of equity-share schemes in South African agriculture," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 44(4), pages 1-31, December.
    5. Wynne, Adrian T. & Lyne, Michael C., 2003. "Rural Economic Growth Linkages and Small Scale Poultry Production: A Survey of Poultry Producers in KwaZulu-Natal," 2003 Annual Conference, October 2-3, 2003, Pretoria, South Africa 19095, Agricultural Economics Association of South Africa (AEASA).

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