The Land Bank is committed to empowering farmers across South Africa by offering financial solutions tailored to different farming operations. From small-scale producers to agro-processing ventures, the Land Bank provides several funding programmes to ensure the sustainability and growth of farming enterprises. This guide, enriched with details from Themba Rikhotso, explains how to access funding, with a focus on eligibility criteria, targeted producers, and application processes.
Get Funding for Farming in South Africa from Land Bank
Below is a step by step process on how to get funding for farming in South Africa from Land Bank:
Step 1: Understand the Targeted Producers
The Land Bank’s funding is available for:
- Small, medium, and large-scale producers in primary agriculture and agro-processing.
- Producers involved in value chain and aggregation activities.
The funding prioritises projects with high development impact, aiming to support enterprises aligned with the Agriculture and Agro-processing Master Plan.
Sector Focus
Targeted commodities include:
- Grains and Oilseeds
- Fruits and Nuts
- Livestock: Poultry, piggeries, and red meat
- Other Food Sectors: Dairy, sugarcane, aquaculture, and vegetables
- Non-Food Sectors: Wool and mohair
- Industrial Crops: Cotton
Step 2: Ensure You Meet the Qualifying Criteria
To access funding, applicants must meet these key criteria:
- South African citizenship with a valid ID or registered business entity.
- Black-owned and managed farming enterprises that are commercially viable.
- Enterprises in joint ventures must ensure non-black partners own no more than 40% of the business.
- Projects must have 10% farm worker profit sharing.
- No funding is provided for debt settlements, refinancing, or distressed producers.
“The purpose is to create sustainable farming businesses that contribute to food security and job creation,” says Rikhotso.
Step 3: Explore the Blended Finance Scheme (BFS)
The Blended Finance Scheme combines grants and loans to make funding accessible and affordable. Key features include:
- Up to 50% of the funding can be a grant.
- The grant portion is conditional and cannot be approved on a standalone basis.
- Loans are offered at market-related rates.
This programme supports:
- Purchasing agricultural land or agro-processing entities.
- Expanding production on existing farms.
- Acquiring capital equipment and infrastructure.
- Covering working capital and production costs.
Step 4: Leverage the Agro-Energy Fund
The recently launched Agro-Energy Fund is designed to help farmers mitigate the effects of South Africa’s energy crisis. Key benefits include:
- Up to 70% grant funding for smaller, emerging farmers.
- 30% of funding offered as a loan.
- Focus on sustainable energy solutions for farming operations.
Applications for the Agro-Energy Fund are expected to open soon, making this an excellent opportunity for farmers to invest in energy-efficient solutions.
Step 5: Exclusions to Keep in Mind
Certain individuals and entities are excluded from Land Bank funding, including:
- Politicians in public office (12-month cooling-off period).
- Employees of government and State-Owned Enterprises (24-month cooling-off period).
- Part-time producers or those mismanaging prior government support.
- Joint ventures without sufficient producer ownership (minimum 60%).
Step 6: Scorecard Evaluation
The Economic Benefits Criteria Scorecard is used to evaluate applications. Points are allocated for factors such as:
- Ownership and transformation.
- Inclusivity and local market contribution.
- Job creation and sustainable practices.
A minimum of 20 out of 50 points is required to qualify for funding.
Step 7: Apply for Funding
Farmers can apply for funding by:
- Visiting Local Branches: See contact details below.
- Submitting Online Enquiries: Visit the Land Bank website at www.landbank.co.za.
- Reaching Out to Provincial Offices: Use the contact details listed on the Land Bank website.
Contact Details
Gauteng (Head Office)
- Tel: (012) 686 0500
- Address: 272 West Avenue, Lakefield Office Park, Centurion
Other Provinces
- KwaZulu-Natal (Pietermaritzburg): Tel: (033) 845 9600
- Western Cape (Cape Town): Tel: (021) 974 2200
- Free State (Bloemfontein): Tel: (051) 404 1400
- Mpumalanga (Nelspruit): Tel: (013) 754 2400
For full contact details, visit the Contact Us page.
Final Thoughts
The Land Bank is committed to transforming South Africa’s agricultural landscape by empowering farmers through targeted funding. Whether through the Blended Finance Scheme or the Agro-Energy Fund, these programmes aim to drive growth, sustainability, and job creation in the agricultural sector.
As Rikhotso says, “We are ready to support emerging farmers and ensure they achieve profitability and long-term success.” Start your journey by contacting the Land Bank today!