Farmers reject government’s FCA: A marginal solution to a major crisis

HARARE – The Compensation Steering Committee (CSC) (the legally mandated body representing a significant majority of Zimbabwe’s dispossessed commercial farmers) has publicly condemned recent claims made by the government regarding compensation payments to displaced farmers as misleading and inaccurate.

The statement issued by the CSC comes on the heels of comments made by the Minister of Finance, which the committee argues do not reflect the reality faced by thousands of farmers left destitute after state-sanctioned land seizures in the early 2000s. Official records indicate that over 4,500 commercial farmers lost both their homes and livelihoods during this tumultuous period, and compensation efforts have faltered significantly in recent years.

In a landmark agreement signed in July 2020, the government and farmers reached the Global Compensation Deed (GCD), which proposed a compensation package valued at US$3.5 billion for the farmers, a considerable reduction from previous estimates by the Commercial Farmers’ Union (CFU) that valued the loss at US$10 billion and independent valuations estimating US$8.5 billion. The GCD outlined a structured payment plan over five years, with promises of cash payments to support the farmers. However, almost five years have passed, and no payments have been made under this agreement.

The situation worsened when, in April 2023, the government introduced an alternative payment structure through a revised deal known as the Farmers Compensation Agreement (FCA), which proposed payments spread over a decade through government Treasury Bills with a minimal interest rate of only 2%. This offer was met with overwhelming rejection from the farming community, with only 782 out of thousands voting in favour of it, compared to 3,100 who supported the original 2020 proposal.

“In reality, only a small token payment has been made, and the significant majority of farmers remain uncompensated,” stated Deon Theron, Acting Chairman of the CSC, whocriticisedd the government’s actions for misrepresenting the FCA as a comprehensive compensation solution. “The FCA was initially pitched as interim relief aid for distressed farmers but has now been recast into a permanent solution, which simply is not the case.”

The CSC further articulated concerns over the newly proposed government bonds, which they describe as ineffective and risky. “These bonds do not clear the debt; they convert displaced farmers, who are Title Deed Holders, into bondholders reliant on very uncertain and high-risk long-term payouts,” explained CSC representative Angus Selby.

In a pointed call for accountability, the CSC has sought to clarify to both the local and international communities that the reported progress on compensation is misleading. “The elderly, desperate, and destitute farmers are being exploited to create the illusion that compensation issues are resolved,” the committee remarked, emphasising the need for a legitimate and fair resolution to the ongoing compensation challenges faced by the farmers.

The statement concludes with a strong plea from the CSC urging the government to engage in open, constructive dialogues to explore a more viable compensation strategy that meets the expectations of all stakeholders involved. Such collaborative efforts are deemed essential not only to address the rights and needs of the dispossessed farmers but also to aid in revitalising Zimbabwe’s agricultural sector and fostering trust within local and international communities.

-finx