The Malaysian Insight

THE majority of Cameron Highland farmers are against Pahang’s new land lease policy that adds to farming costs and does not give them security of tenure, flower and vegetable growers’ associations said.

Since Pahang Corporation Sdn Bhd’s introduction of the new lease policy in January, only 20 farmers have accepted it, whereby those with temporary operating licences (TOL) are given a new agricultural agreement.

The new policy aims to convert the status of 1,018 farms under TOL to the new leases. It is estimated that there are more than 2,000 vegetable farms in Cameron Highlands, 15 of which are organic.

However, farmers’ associations said the new policy does not protect them but leaves them vulnerable to loss of land just for breaching any term in the new lease agreement.

“The lease will not be renewed. Simply put, you can be driven out of the land at any time,” said Cameron Highlands Farmers’ Association vice-chairman Cheng Nam Hong.

The five major associations representing farmers – the Cameron Flower Association, Vegetable Farmers’ Association, Agricultural Association, Malay Small Gardeners’ Association and Indian Small Gardeners’ Association – have jointly submitted a memorandum about the new policy’s weaknesses and urged the state government to review it.

Describing their grouses, Cheng said farmers would incur a sharp hike in costs under the new lease. This is because the annual rent would be increased from around RM1,000 per 0.4ha per year to RM4,500.

“It was just more than RM100 per month before. Now it’s RM375.”

The four-fold jump makes working the land for the small farmers untenable, said organic farmer Ng Tien Khuan.

“A small farmer’s income is not high, it is also dependent on the vagaries of supply and demand.”

Small farmers would have to dig deep into their financial reserves just to stay in business, he said.

Another sore point is the new lease policy’s condition which prevents the land from being passed on to the lease holders’ children in the event of death.

This had been possible under the TOL system, said Ng, the former chairman of the Farmers’ Association Cameron Highlands.

The TOL land could be passed on as inheritance as long as the government does not need to acquire it for other purposes.

“The new lease policy reduces the farmers’ rights to land,” he said, adding that this was one of the biggest concerns for farmers under the new policy.

“After having invested so much into working the land, we would want to pass it on to our children. It’s the same with business in any other area.”

Another sore point is the length of the land tenure, which is three years plus two. They want at least 10 years, as the short timeframe does not encourage investment in agricultural modernisation and upgrading.

Farmers area also against the fact that they would have to pay the cost of surveying and demarcating the land as well as legal fees for the lease.

The new lease policy also makes it mandatory for all farmers to be obtain the Good Agricultural Practices (MyGAP) certification within three years, which farmers said cost thousands of ringgit.

“The certification must be obtained within 36 months of the lease, otherwise the contract will not be renewed after three years,” said Ng.

The high cost of certification is due to its outsourcing by the Agriculture Ministry to an external contractor, he added.

It will add to the cost of farming and in turn, the price of vegetables for consumers, Ng said.

And yet, when oversupply occurs, prices plummet and it’s the farmer who bear the loss.

“This puts farmers in more financial difficulties,” Ng said.

Petition campaign

Some farmers have launched a signature campaign calling for the new lease to be scrapped and for the TOL policy to be reinstated.

But Tanah Rata assemblyman Chiong Yoke Kong told The Malaysian Insight that this was almost impossible as the new policy has been gazetted.

Chiong said he supports the new land policy in Cameron Highlands as the start of land reforms.

However, the state failed to consult with famers and the authorities’ manner in implementing the policy appears to show that they are only interested in collecting money.

“The state has failed to recognise what farmers go through, their concerns about sustainable production and ability to pass the land and farm on to the next generation.

“The new policy will kill small farmers.”

Chiong has reached out to Pahang Corp but received no response.

The Malaysian Insight is also contacting Pahang Menteri Besar Wan Rosdy Wan Ismail for comments. – July 1, 2020.