Summary:The news article published on News24 on the 21st December2017 – is about the ANC wanting to amend the constitution to allowfor land expropriation to be allowed, without any compensation on theparty who the land will be taken from. Agri Sa has warned the ANCthat this would contribute to a reduction in foreign investors in theagricultural sector. The ANC believes that the land expropriationlaw, would not impact agricultural holdings or the productionassociated to it. Agri Sa and other leading analysts believeotherwise. Pointof View on Article:The ANC is looking to amend the constitution to allow for individualsto lay claim to agricultural lands that belong to farmers as a meansto promote growth and development in the specific industry. But theyare not looking at the long term effect, that the parties that may belaying claim to said land – might not have the necessary knowledgeor expertise that is required to work the agricultural lands or theprocesses required to make it remain profitable. Also, not allowing for compensation to the parties who purchased theagricultural holdings and giving away the land without any sale willresult in the original owners having to reduce the value of theassets that they own.
Also leading to a decrease in production ofproducts and our skilled farmers relocating to other countries asthey have no means to provide for their families. Foreign investorscould end up feeling threatened by the changes and pull out theirinvestments, which could also cause farmers to close down theirfarms. As they would not have the necessary funds to maintain or runthe farms.Impacton Short Term Insurance Providers:This would impact insurers negatively as the current farmers owningthe property, as well as the assets associated to the agriculturalholding – would need to start canceling their policies or reducingthem in size. As they would not be able to afford the cover or won’town the assets.This will cause a reduction in the amount of money short terminsurance providers would be able to generate from the clients.
Alternatively, if we lose the old clients and replace them with newerones. In the same industry, they may not know the in’s and out’sassociated to it and could end up claiming more – which wouldresult in short term insurance providers having to pay out more onclaims. Investors pulling out of the economy – could also end up pullingtheir investments from the insurers (stocks etc) which would resultin a plumet in value for the insurer and could result in them havingto close down branches, and reducing jobs to try balance overheadsand to remain profitable.Impacton my Career Path:With an increase in farmers selling or losing their assets, theywould in turn reduce or cancel their cover. Which would impact myperformance as it would mean that I would be dealing with moreclients that I cannot retain.
The positive would be that short term providers would create morepositions to help with the generating of business for the new ownersof the agricultural holdings.