Land tenure security as a foundation for migration from extensive to intensive farming: A South African case study

Abstract

To achieve food security a country must have a well-developed, extensive farming sector. Feeding Africa’s growing population requires a transformation from extensive and smallholder production to intensive commercial enterprises. However, the necessary capital will not be deployed by farmers, bankers and other investors without secure land tenure. Clearly defined property rights are essential to support the efficient use of property, encourage investment in farming, provide security for borrowing and protect against expropriation. Using data from the Global Food Security Index and nine global indexes for 17 African countries, this study set out to demonstrate that sustainable national food security is not possible without well-defined, tradeable property rights. The results illustrate the importance of land and property rights in ensuring national food security and the role of these rights in ensuring GDP growth and road infrastructure development as well as the importance of access to finance for farmers and their investment in on-farm storage. A case study of an enterprise in South Africa was used to demonstrate the importance of land rights in motivating farm improvements including soil enrichment, irrigation, technology and mechanisation in the transformation from grazing and grain production to high-value perennial crops. The case study demonstrates the path from extensive to intensive farming and highlights that secure tenure not only motivates on-farm investment but also leads to a significant appreciation of the value of the land itself. The study affirms the central role of secure land tenure rights and systems in development, economic growth and food security.