Agriculture will suffer a slow death if we fail to act boldly | Anton Refalo

The COVID-19 pandemic and the war in Ukraine have confirmed that the importance of agriculture goes much further than its direct contribution (1.4%) to Malta’s Gross Domestic Product. In times of increased uncertainty, food security becomes of strategic importance. This is true to all nations and economies.

In 2017, the European Parliament passed a resolution identifying agricultural land ‘as an increasingly, non-renewable resource’. It stipulated that it is a fundamental human right to have access to sufficient and healthy food. It recognises that agricultural land is a key part of the ecosystem, which is vital for the survival of humans. It notes that land is increasingly becoming a source of conflict among competing economic players and, more importantly understands that high prices and rents for agricultural land tend to render the activity of farmers economically unattractive.

Fundamentally, the resolution acknowledged the responsibility of the State to intervene on the market to ensure the preservation of agricultural land, which while being owned property is also a public asset subject to social obligations. State intervention is justified in the public interest provided that it is not discriminatory and respects the fundamental freedoms of all citizens. In fact it is not only justified, it is indeed essential.

In a small island like Malta the competition for land use is even more intense. Since conventional agriculture is inherently land-intensive, controlling the acquisition and ownership of agriculture land becomes fundamental to the sustainability of agriculture and food production.

Various policies and plans already exist, such as the National Agricultural Policy for Malta and Malta’s Strategic Plan 2023-2027 (under the Common Agricultural Policy). What is required now, is a framework which offers a long-term vision, and which takes into account the interests of the various stakeholders, as well as, strong systems which facilitate access to land, market and funds to support food production and the ownership and acquisition of land.

This month the Ministry for Agriculture, Fisheries and Animal Rights for which I am responsible published a White Paper entitled “Reform in the Acquisition and Ownership of Farmland”. This White Paper builds on the proposed amendments to the Agriculture Lease (Reletting) Act (Chapter 199 of the Laws of Malta) which parts thereof were declared unconstitutional by the Maltese Court. These amendments have been tabled before our Parliament and their primary objective is to address those elements deemed unconstitutional, by amongst others setting the procedure, method and criteria for the financial value assessment of agricultural land. The proposed procedure is both fair and proportional whilst ensuring that agricultural land is valued as such and not on the basis of other speculative interests.

It would be remiss of me as minister responsible for agriculture not to recognise that the sector is at a crossroads. If we fail to act now, and if we fail to act boldly, agriculture in Malta will suffer a slow yet certain death, to the irredeemable detriment not only of farmers and their families, but also to our collective prosperity and security. But as always, each crises brings with it opportunity, in this case the opportunity to create the framework ensuring the continued security and sustainability of agricultural enterprise for years to come. This is precisely what the White Paper sets out to achieve through its bold and far reaching proposals.

The White Paper lists twelve proposals intended to protect Maltese agricultural land.  The key proposal is the setting up of an Authority whose responsibilities will include keeping a record of sales, rentals and proper use of private agricultural land, ensuring that all transfers are based on the principle of fair value and the acquisition of private agricultural land by genuine and young farmers.

The Authority will be empowered to act as an intermediary and, if necessary, to acquire agricultural land offered for sale by its owners, so as to allocate it to active or prospective farmers. The Authority will set up a cadastre (information system) on land tenure, use and ownership and will be expected to liaise closely with the Planning Authority to safeguard agricultural land within the boundaries established in accordance to Rural Zones identified in the Local Plans of 2006, and any subsequent changes thereto. The Lands Authority, on its part, will be embarking on a process to review the estimated value of agriculture leases whenever calls for offers are issued ensuring that those offers too are based on fair value principles and preference is given to genuine farmers.

Other measures proposed in the White Paper include tax measures to incentivise agricultural land tenure and acquisition by active farmers and newcomers as well as financial assistance to encourage investment in agriculture. It is being proposed that national funds be used to incentivise the consolidation of land holdings and to offer loan guarantees to farmers buying agricultural land currently leased to them.

To ensure that benefits from the reform benefit those seriously committed to the agricultural sector, a distinction will be made between active and hobby farmers as well as newcomers. These distinctions will follow the new regulations governing income support to active farmers under the Common Agricultural Policy.

The White Paper is available online and I encourage the general public to submit its comments during the consultation period. All contributions are not only most welcome but are crucial to ensure that this bold reform reflects the true ambitions of all Maltese alike.

Contributions can be submitted at [email protected] until the 8th of November 2022.

Anton Refalo is minister for agriculture, fisheries and animal rights