Tag Archives: A2 farms

NEW PAPER – Medium-scale farms in Africa: history lessons from Zimbabwe

‘Medium-scale’ farms as seen as potential drivers of future agricultural growth in Africa. In Zimbabwe, much hope is vested in A2 farms allocated at land reform becoming productive, with hopes pinned on investment flowing following the election. The A2 farms, averaging around 100 ha in extent, will be a major focus of policy attention in the coming years, as attempts are made to resuscitate the commercial sector. These are also the areas where the political-military elite now firmly in power own land, and there will be multiple political and economic incentives to invest in the A2 land reform areas.

But what will be the future of such medium-scale commercial farms? Can we look to historical experience to suggest possible trajectories? What will happen to the A2 farms several generations on? Will we see a progressive evolution of increasing commercialisation and investment driven by market forces as is sometimes assumed, or will a greater diversity of outcomes arise, as chance, necessity and contingency play their part? A new paper is just out in the journal Africa (open access) that asks these questions.

The paper draws on an historical and contemporary assessment of what were called ‘native purchase areas’ in Zimbabwe. These were medium-scale farms in todays’ parlance, established for black farmers by the colonial government from the 1930s. Through a study of Mushagashe area, we asked what’s happened since, and why?

Structural transformations

A number of recent studies have documented the growth of ‘medium-scale’ farms across Africa, from Ghana to Malawi to Zambia to Kenya. ‘Investor farmers’ – local rural elites, retired civil servants and urbanites wanting a rural base – are creating a new dynamic as land markets – both formal and informal – emerge, and rural traditional leaders, government officials and others get involved in the process, accruing personal benefits along the way.

This redistribution of land towards a new elite results in processes of land dispossession and rural proletarianisation, but also investment, skill development and economic linkage effects between new medium-scale farms and the smallholder plots that surround them. For many, despite the negative consequences for some (perhaps many), this dynamic is seen as the future: a ‘structural transformation’ of the agrarian setting, offering many opportunities for growth and investment.

In Zimbabwe, the land reform of 2000 created a category of medium-scale farms – the A2 schemes. Around 25,000 such farms were allocated, ranging in sizes from around 20 ha (especially with irrigation) to over 500 ha, in dry areas. Like in other neighbouring countries, this has resulted in a new agrarian structure, complemented in Zimbabwe’s case by a massive increase also of smallholder agriculture.

The new A2 farmers have a similar social and economic profile to elsewhere: urban connections, business people, retirees, and they are also often well-connected politically. Unlike elsewhere the new A2 farms did not emerge from a land market, but from direct allocation by the state, subdividing large-scale commercial farms and estates. Although allocations were notionally done on the basis of a formal application process, including the submission of a business plan and a vetting of applicants in terms of qualification, capital availability and investment ideas, this often didn’t happen. Instead, in multiple cases, there was a well-documented pattern of corruption and patronage, especially around election times, when politically- and military-connected elites grabbed farms.

The result has been a mixed set of outcomes for A2 farms. Some have done very well, investing and producing; many though have not, and the farms are languishing. Very often this is due to the lack of capital and finance, which has not been forthcoming due to lack of collateral security. The process of issuing 99 year leases has been painfully slow, and for a variety of reasons the banks have been reluctant until recently to accept them as guarantees. The general lack of liquidity in the economy due to recurrent crises has also hampered investment.

The recent studies of medium-scale farms across Africa have focused on farm structure (in the MSU studies they have taken a huge range of sizes from 5-200 hectares to represent this group) and who owns the farms, and largely not their fortunes as productive enterprises, patterns of investment and long-term viability. Our new studies under the DFID-supported APRA (Agricultural Policy Research in Africa) programme, which is linked to a set of MSU studies led by Thom Jayne, is looking at A2 farms: investigating their sizes, ownership patterns and through some detailed surveys in Mvruwi and Masvingo, investigating both production and investment.

Most post-land reform studies have focused on the A1 smallholder farms (appropriately so, given they are the majority), so this will be the first in-depth assessment of the A2 farms, beyond very selective audits carried out by the state a decade or more ago. This will help us understand whether the dynamic in Zimbabwe, generated by the A2 allocations in land reform, replicate or contrast with, what has been found in other countries in the region.

Native Purchase Areas 80 years on

In addition to this study, our work has been looking at longer-term histories, and a previous allocation of ‘medium-scale’ farms (also averaging 100 ha) from the 1930s in Zimbabwe. These are the Native Purchase Areas and an earlier blog series has highlighted some of the findings already. Our new open access paper in Africa synthesises and extends the analysis, based on Mushagashe small-scale commercial farming area near Masvingo.

Our findings show that unbridled optimism (or indeed pessimism) about the future of medium-scale farms is unwarranted. The MSU studies from across Africa have spotted an important shift in size structure, but they tell us little about the future. The idea that there is a linear evolution of farm systems from smallholder to medium-scale to large-scale commercial, as land areas consolidate and market forces drive comparative advantage needs to be challenged.

The big debates about structural transformation in agriculture currently being revived in agricultural economics are often starkly ahistorical. They assume simple, unidirectional evolutionary change as incentives shift. But there’s a lot else that goes on besides. When we look at history in detail – as we did for Mushagashe, but more impressively Sara Berry did for Kenya, Ghana, Nigeria and Zambia – we see that commercialisation doesn’t happen like this. There are stops and starts, booms and busts, generational changes, policy shocks and so on. History is about contingency, conjucture and chance, not predictable, linear evolution.

As we found in Mushagashe, 80 years on some farms were thriving; others had been but were languishing now; others had plans for the future, but weren’t getting going; while others had been abandoned, or were in the process of being so. Still others had different views of the land: this was home, somewhere to seek refuge from ‘communal area’ life, or where other family members could be settled, in what, over generations, had become more like villages than conventional farms.

Commercialisation we found wasn’t a one-size-fits-all phenomenon. For some it was the classic pattern of increasing external inputs, greater deployment of labour and higher, more marketed outputs. But for others commercialisation was selective: in projects run by particular family members, or in particular plots, where water was available.

Lessons from history

While history cannot predict the future, it can help us ask questions about what might be. And the Native Purchase Area lessons documented in the new paper suggest that it is unwise to be too gung-ho about the future of medium-scale farms in Africa. The restructuring of farm sizes we are seeing now will have many outcomes, and the sort of processes that unfolded in Mushagashe since the early 1930s will likely play a part in creating a wide diversity, both in the A2 farms and in other medium-scale farms in the region.

This post was written by Ian Scoones and first appeared on Zimbabweland

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What is the future for medium-sized commercial farms in Zimbabwe?

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Zimbabwe’s land reform created two ‘models’ for resettlement farms – one relatively small-scale, the A1 schemes, and one medium to large-scale, the A2 farms. A1 farms now cover (very) approximately 4.2 m ha including around 150,000 farms and A2 farms 2.7 m ha across 20,000 farm units (although A2 areas now include a range of other larger-scale commercial farms in addition). The idea was that the small-scale farms would provide a productive base for large numbers of land-hungry people, including those who had invaded the white-owned farms in 2000, while the A2 farms would accommodate demand from the middle classes and elites. The A2 farms were to be the new drivers of commercial agriculture, occupied by qualified, business-savvy farmers, able to invest in new production.

As every observer of Zimbabwean agriculture since land reform knows, the planners’ vision has not come to pass. The A1 farms have done better than many have expected, as documented on this blog many times. Contrary to some commentaries, they have generated livelihoods, employment and production, in often very difficult circumstances. There is a huge range of farm types within the A1 model, ranging from self-contained farms, more similar to A2 holdings, to small-scale village-style set-ups. Numbers of farms under this category has expanded significantly, with some estimating that there are now around 175,000 farm units. As we have documented in Masvingo, Matabeleland South and Mashonaland, not all A1 farmers are the same – a good proportion have done well, but not everyone, and processes of agrarian differentiation continue.

By contrast the A2 farms have been disappointing. In part this has resulted from the failure to invest during the economic crisis of the 2000s, when finance and support were severely lacking. In part a number of A2 farms, particularly those with good infrastructure, whether housing or irrigation systems, were ‘grabbed’ by politically-connected elites. The neat bureaucratic system of application and assessment of candidates against strict criteria of business viability and agricultural expertise was by-passed due to political expediency in such cases.

As discussed on this blog many times before, such ‘cronies’ are not the majority by any means, even in the A2 farms, but they do exist, and perhaps especially so in the high potential areas, near Harare, where commercial agriculture is potentially profitable. Of course some A2 farmers have made a go of it, and invested through private sources – whether from diaspora remittances, NGO jobs or other less straightforward means. These include ‘cronies’ – able to divert state resources – and others. But many have struggled. The failure to create and deliver an effective lease system, and the lack of finance, either from state or private sources has hampered ambitions to invest, rehabilitate infrastructure and increase production. Many A2 farms remain in a sorry state, neglected and failing to produce, while a some are prospering; either through own investment or increasing through various forms of joint venture.

Our studies have been looking at these farms both in Masvingo and Mashonaland Central provinces. We have carried out a number of detailed case studies looking at farm production, labour and the challenges associated. These show a mixed picture of failure and success. But beyond the audit a decade ago, more comprehensive data on patterns of ownership and production are lacking. We are beginning to piece together a broader picture, as finding a route to supporting A2 farm production is essential. We are asking, for example, what are the levels of production and land utilisation in these farms, how is labour organised, and what are the challenges being faced? The aim, in time, will be to come to suggestions as to what might be done to support new forms of commercial agriculture, and what types of financing, technical support, land tenure regimes and other policy arrangements, including joint ventures, make sense.

One way of informing this enquiry has been to look to past experiences, and notably that of the so-called ‘African Purchase Areas’, now known as ‘small-scale commercial farming areas’. These add up to 1.4m ha in total, across approximately 8000 farms scattered across the country. They were established from the 1930s, with more set up in the 1950s to counter nationalist moves among the African population. Colonial policymakers were aimed at creating a ‘yeoman’ class of farmer, accommodating an educated, urban-based middle class in the reform of land use. As with the land reform of 2000, there were explicit political motivations to enlist and incorporate, but also a productionist/modernisation agenda to generate new forms of commercial agriculture based – in the case of Purchase Areas – on offering Africans freehold title to land.

The policy narrative was clearly focused on a ‘civilising’ mission – these were acceptable, English-speaking ‘natives’, educated through the mission school systems, and valued clerks, messengers, native police, teachers and others working for the colonial state. Politically, the colonial regime could not afford for such groups to rebel and join the ranks of the nationalists (although of course many did), and needed to be co-opted, by being given special favours not available to the ‘reserve native’. Others given land were those Africans who did not have land in the ‘reserves’, but were not acceptable in ‘white’ areas, and included South African Basotho migrants, African churches and others.

The allocations of land varied from area to area, but they were in the order of 100 ha, not dissimilar to those offered to most A2 farmers in the 2000s. A2 plots ranged from 20ha in the irrigated sugar estates to several hundred hectares in the dryland ranching country of Matabeleland, but the overall average – typical of the medium-potential largely dryland farming areas where the Purchase Areas were located – was about 70 ha. In our recent research we have been asking, what has happened to the former Purchase Areas several generations on? Do these experiences give hints as to what might happen to the A2 farms in 50 or 60 years? What lessons can be drawn – positive and negative – that planners and policymakers need to take on board now, as the A2 model is assessed and potentially rethought?

In the next few weeks, I will look at some of these questions based on some preliminary research carried out in Mushagashe and Dewure SSCFAs in Masvingo Province. Since the classic work by Angela Cheater carried out in Msengezi Purchase Area, documented in ‘Idioms of Accumulation: rural development and class formation among freeholders in Zimbabwe (Mambo Press, 1984), plus many subsequent articles, and the important historical studies by Allison Shutt focusing on Marirangwe, there has been remarkably little research done on these areas, with the notable exception of Joseph Mujere’s fascinating study of the evangelist Basotho migrants from South Africa to Dewure Purchase Area. In the mid-1990s Vincent Ashworth carried out a study on small-scale farming areas for the World Bank, but I cannot locate it (if anyone has a copy, please, please let me know!), and there is a scattering of data among various Commissions and reports, but little else. But as an experiment in creating a class of medium-scale farmer in Zimbabwe, the Purchase Area story is fascinating, which is why we have returned to it in our Masvingo studies during the last year.

In our current studies we are working with a random sample of 26 farms in Mushagashe SSCFA, near Masvingo. Established in from the early 1930s, the area was transferred to blacks able to purchase the land. The area now has 250 farms, and rather like the A2 farms, these have varying levels of production and investment. As the forthcoming blogs show, many of the challenges relate to cross-generational transfers, inheritance and how subsequent generations make use of family-owned land.

These issues are only beginning to be faced in the A2 farms, but glimpses of the future may be shown by a look to the past. Next week I will offer a very brief historical background to the ‘Native Purchase Areas’, before exploring some detailed case studies, and then concluding the series with a reflection on the future of A2 farms in Zimbabwe, and medium-scale commercial farming more broadly.

This post was written by Ian Scoones and appeared on Zimbabweland

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