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Land price premiums in South Africa's land redistribution process: A case study of Northern Kwazulu-Natal sugarcane farms

Author

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  • Mbatha, N.C.
  • Antrobus, G.G.
  • Van Rooyen, J.

Abstract

The desire to transfer 30 per cent of commercial farmland into the hands of black South Africans has progressed slower than anticipated. Politicians and government officials have blamed the market approach to the purchase of land for the challenges and failures in the process. An analysis of the transfer of sugarcane land in two districts in KwaZulu-Natal over the period 2000 to 2006 permitted a comparison of the prices paid to commercial farmers both in private transactions and in the case of sales to government. Data did not support the contention that the slow rate of transfer was due to a manipulation of land prices by landowners in an attempt to stall the process. It was concluded that the state lost most of its bargaining power in the land reform market due to the drawn out nature of the land valuation processes.

Suggested Citation

  • Mbatha, N.C. & Antrobus, G.G. & Van Rooyen, J., 2010. "Land price premiums in South Africa's land redistribution process: A case study of Northern Kwazulu-Natal sugarcane farms," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 49(2), June.
    • Handle: RePEc:ags:agreko:347292
    DOI: 10.22004/ag.econ.347292
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    Keywords

    Agribusiness; Crop Production/Industries;

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