Farmers are still the best despite attacks and troubles

2 weeks ago written by

Despite farmers being under attack from government and farm murders in South Africa, the total income earned in the agriculture and related services industry rose to R277,6 billion last year  compared with R250,2 billion in 2015.

StatsSA says in its latest agricultural survey the total income figures from farming reflect an increase of 10,9% between 2015 and 2016. In 2016, ‘animals and animal products’ generated the largest sales (R118,3 billion), followed by ‘horticultural crops and products’ (R63,5 billion) and ‘field crops’ (R54,7 billion). The highest percentage increase was recorded for income earned from the sale of ‘horticultural crops and products’ (14,0%), followed by ‘field crops’ (8,5%) and ‘animals and animal products’ (8,0%).

Concentration ratios

In 2016, the 100 largest enterprises (in terms of total income) in the agriculture and related services industry contributed 26,9% to total income. Concentration ratios in the agricultural industry remained relatively the same between 2015 and 2016. The change in concentration ratios (CR) ranged between -0,2 and 0,2 of a percentage point.

Income by enterprise size

Large enterprises contributed 63,2% or R175,5 billion of the total income in 2016, followed by small enterprises with a contribution of 22,5% or R62,6 billion. Medium enterprises had the lowest contribution to total income at 6,2% or R17,0 billion.

Total expenditure

Total expenditure incurred by the farming sector for 2016 was R259,8 billion compared with R231,7 billion in 2015. Expenditure on ‘interest’ reported the fastest increase at 25,2%, followed by ‘water and electricity’ (23,0%) and ‘depreciation’ (19,2%).

Capital expenditure

The total capital expenditure on new assets in the agriculture and related services industry in 2016 amounted to R23,8 billion compared with R21,9 billion in 2015, an increase of 8,8%. In both 2015 and 2016, the largest contributor to total capital expenditure was ‘motor vehicles, plant, machinery, tractors and other transport’, followed by ‘land and buildings’.

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