Agricultural economist, Johann Bornman says that farm prices have fallen 32% since the ANC decided to prioritise the issue of land expropriation without compensation.
Using data from the country’s Deeds Office, Bornman says the are other two factors that contributed to the drop in farm prices which are the drought that hit most parts of the country and the current economic situation.
If you compare the analysis of provinces, it differs. It stands out where you find the severity of drought - there's a huge impact so it's a combination of three factors.— Johann Bornman, Agricultural economist
He says the drop started in 2014 when the drought started.
In the Western Cape, we are still struggling with the after-effects of the drought and it will be with us for at least another two years.— Johann Bornman, Agricultural economist
Bornman says the Agricultural Business Chamber Confidence Index which was released on Monday indicates a significant drop since the second quarter of 2016.
He says in the coming two months they will have data available which will show clearly the impact of all three factors to the agricultural sector.
To hear the rest of the conversation with Johann Bornman, listen below:
This article first appeared on CapeTalk : Land expropriation one of the contributing factors to a drop in farm prices