46 under government to government agreements, and specialised enterprises such as dairy, seed production operations and forestry enterprises (timber and wildlife). Improving Equity in the Allocation of Land Another challenge that needs to be addressed is the need to rationalise land allocations to accommodate a broad range of interest groups a number of which have hitherto been marginalized in the reform programme. Among these are the interests of women, war veterans, former farm workers and some displaced farmers who are willing to continue farming under the new dispensation. Most worrying is the seemingly unfair advantage captured by highly placed officials and those connected to them in land and water allocation over poor communal farmers and other disadvantaged groups. Comprehensive Land Policy and Administrative Institutions Review Finally, the wide-ranging land and agriculture sector transformation demands a comprehensive review of policies and institutional structures governing land for its effective administration and use. 6.3.2 Agricultural Productivity There is a broad range of challenges that need to be addressed if the agriculture sector is to recover. Most agricultural markets and institutions have been seriously weakened as a result of the changes implemented during the FTLRP. There is, however, considerable room, and a range of existing farmer and agency capabilities and potentials to reverse the declining production trends and recovery can feasibly be instituted in the medium term. The following challenges, however, need to be addressed: Profitability Constraints A combination of exchange rate controls, output price controls, marketing and trade restrictions, as well as conditions that have limited the capacity utilisation of input industries, have combined to make inputs largely unaffordable and output prices too low, negatively affecting farm viability. As discussed in the next section, restoring agricultural profitability is key to the resumption of production and investment in agriculture and to the recovery of the sector. Water Unclear water use partitioning following land reform, lack of financial resources to exploit available water and a lack of effective co-management arrangements for water in the resettlement areas have combined to reduce areas under irrigation with detrimental effects on yields. Accessibility of Inputs Agricultural inputs have largely been unavailable and expensive to all classes of farmers. Adverse macroeconomic and sectoral conditions, including high interest