Department of Agriculture, Forestry and Fisheries
This Bill seeks to regulate the competing interests for agricultural land by other industries by introducing norms and standards, protected agricultural areas (where non-agricultural activities will be restricted) and guide municipalities in their planning functions through agricultural sector plans to avoid the loss of high potential agricultural land to township development.
This legislation is critical for the sustained prosperity of agriculture, and therefore also the agribusiness sector as it will divert developments as far as possible away from high value agricultural land.
This Bill has passed Nedlac but is yet to be submitted to Parliament.
Department of Water and Sanitation
The new water Bill is expected to consolidate the management of raw water (currently regulated by the National Water Act) and water services (currently regulated by the Water Services Act).
Regarding the management of raw water, we expect there to be a strong focus on water reform and the introduction of a ban on water right trading coupled by a state-managed ‘use-it or lose-it’ provision as proposed by the National Water Policy of 2015. Secure water rights are vital for financiers as the value of irrigation land is inextricibly linked to the ability of that enterprise to lawfully use water.
We are still awaiting the first publication for public comments of the draft Bill. The Portfolio Committee has repeatedly scolded the Department for its delay in finalising a draft Bill and starting the legislative process.
Department of Water and Sanitation
The regulations lay out the process that must be followed to apply for a wter use licence in terms of the National Water Act.
Secure water rights are vital for financiers as the value of irrigation land is linked to water rights. The procedure which an applicant will need to follow is therefore vital. Some agribusinesses may require water licences for their own activities too.
The final regulations were promulgated in March 2017 but discussions are underway to propose amendments in order to facilitate the application process.
National Treasury
The Act introduced a carbon emissions tax on fuel consumption as well as direct emissions for qualifying emitters.
Primary agriculture is likely to receive an exemption until 2023 but agroprocessors and agribusinesses will likely be taxed for the consumption of fuel (logistics), electricity and possibly industrial activities.
The Act has been passed by Parliament and signed into law by the President.
Department Environmental Affairs
These regulations published under the National Environmental Management: Air Quality Act, places an obligation on emittors of green house gasses over a certain threshold to report their emissions to the Department of Environmental Affairs.
Some agribusinesses exceeding the threashold will need to submit annula figures to the Department by March each year. The information is central to calculate carbon tax liability.
The final regulations were promulgated in April 2017
Department Environmental Affairs
The Climate Change Bill seeks to give effect to South Africa's international agreements under the Paris Agreement to reduce emmissions in line with our national contribution and to adapt to the effects of climate change
The Bill introduces carbon budgets that may be applied to larger emitters on a company level as well as sectoral emmission targets.
The Bill has been referred to Nedlac.