INVESTMENT ON FREEHOLD AND TRUST FARMS: THEORY WITH SOME EVIDENCE FROM KWAZULU / Beleggings op eienaar en Trust grond: Teorie met bewyse van KwaZulu

Abstract

This paper outlines relationships between exclusive and secure property rights to land, land transfers, farm productivity, access to credit and on-farm investment. A survey of freehold and Trust farmers was conducted in the Madadeni district of KwaZulu to investigate these relationships. Despite the existence of title-deeds, it was found that many of the respondents did not have exclusive use rights to land. Non-exclusive use rights occurred where land was co-owned, mutually occupied by two or more members of a family or registered in the name of a deceased person. Land market activity was generally confined to rental transactions by individuals who had exclusive use of land. In the absence of zoning regulations, several landowners had leased plots to residential tenants, with some farms becoming entirely residential. Results of logit analysis indicate that investment in on-farm improvements is higher where tenure is private and secure. It is concluded that exclusive and secure property rights facilitate the land market, promoting efficiency in agriculture. Recommendations give due consideration to the equity implications of land sale and land rental markets and to the consequences of zoning.

Uittreksel

Hierdie studie skets die verwantskap tussen eksklusiewe en veilige eiendomsregte ten opsigte van grond, grondoordragte, produktiwiteit van plase, toegang tot krediet en beleggings op plase. 'n Opname is onder eienaar-boere en Trust-boere in die Madadeni distrik van KwaZulu gedoen om hierdie verwantskappe te ondersoek. Nieteenstaande die bestaan van titelaktes, is daar gevind dat baie van die respondente nie eksklusiewe gebruiksreg van die grond het nie. Nie-eksklusiewe gebruiksreg het bestaan waar die grond mede-eienaan het, onderlinge bewoning deur twee of meer lede van dieselfde familie, of indien dit in die naam van 'n afgestorwe persoon geregistreer is. Grondmark aktiwiteite was oor die algemeen beperk tot die verhuring deur individue wat eksklusiewe gebruik van die grond gehad het. Vanweë die afwesigheid van afbakenings regulasies, het sekere grondeienaars persele aan inwonende huurders verhuur, met die gevolg dat sekere plase totaal residenseël geword het. Resultate van logit analise dui aan dat beleggings in eiegrond verbeterings hoër is waar die eiendomsreg privaat en seker is. Daar is tot die gevolgtrekking gekom dat eksklusiewe en veilige eiendomsregte die grondmark vergemaklik en sodoende effektiwiteit in die landbou bevorder. Aanbevelings gee behoorlike oorweging aan die aandeel implikasies van grondverkope en grondverhurings markte asook die nagevolge van sonering.