Agribusiness confidence index falls to 9-year low

File: President Cyril Ramaphosa said strategically located land will be released to address human settlements needs in urban and peri-urban areas.

File:President Cyril Ramaphosa said strategically located land will be released to address human settlements needs in urban and peri-urban areas.

JOHANNESBURG - Confidence in the agricultural sector is at its lowest since 2009.

The latest agribusiness confidence index from the Agricultural Business Chamber shows that uncertainty over land reform is driving confidence down.

The index has slipped further away from the 50-point neutral mark, to 42 for the fourth quarter.

READ: Crime up in agriculture sector

Parliament on Tuesday adopted a report recommending that the constitution be amended to allow land expropriation without compensation.

Figures for the third-quarter showed agricultural output made a significant positive contribution to overall growth. 

But analysts are warning that the future of the sector holds little promise if the land question continues to unnerve investors.