Debate on expensive land continues

AGRICULTURAL land prices will come under the spotlight again in October so that a final report on the issue can be completed by the end of November, the Namibia Agriculture Union (NAU) has said.

According to the NAU’s latest newsletter, a workshop on land prices is scheduled for the end of October.The workshop follows the recent on by the Ministry of Lands and Resettlement to discuss the preliminary results of a study into agricultural land prices. The Ministry, together with the Food and Agriculture Organisation (FAO), commissioned the study in May because Government is concerned about high prevailing agricultural land prices. Evidence suggests that a total of 1,8 million hectares out of a target of 15 million hectares by 2020, have been redistributed through the resettlement programme. In total, previously disadvantaged land ownership now stands at 6,3 million hectares.The study aims to provide reasons and factors that have impacted farm prices during the period 1985 until 2011. Preliminary findings on farmland sale prices and price trends were presented from analysis done on data captured in Windhoek and Rehoboth’s Computerised Deeds Registration System. Farm prices have increased with 10,5 per cent per annum from 1985 until 2001 and with 33,1 per cent per annum from 2001 until 2011. Participants suggested that this trend has particularly been influenced by distortions caused in the system of demand and supply due to Government’s preferential right policy.The study comes at a time when Government is busy finalising the Land Bill and preparing for the new valuation roles for 2012.