With ongoing challenges around energy security, farmers across the country are looking for ways to keep their operations going. One promising solution is the Agro-Energy Fund, a new blended finance initiative designed to help farmers switch to alternative energy sources and mitigate the impact of load shedding.
Craig Harrison, the provincial head of Land Bank in the Western Cape, explains how this fund works and why farmers should take advantage of it.
“In order to address alternative energy sources in the sector, the department of agriculture, land reform and rural development has established an Agro-Energy Fund at the Land Bank,” Harrison says.
While load shedding may seem to be stabilising, Harrison stressed that the Agro-Energy Fund is about more than just emergency power.
“The fund is beneficial in two ways. One, it can guarantee that a farm has enough energy on hand when needed, such as during load-shedding periods. Or the second one, it reduces the producer’s long-term electricity cost. Some producers experience immediate savings, while others may see it as a long-term saving.”
Related posts
- Relief as farming sector welcomes new Agro-Energy Fund
- A year later: Farmers mull over progress of energy action plan
Who qualifies for the fund?
Harrison outlines who does not qualify for the fund:
“Foreign nationals and illegal immigrants do not qualify. Employees of government, and state-owned entities do not qualify. Politicians in public office cannot qualify. Politically exposed persons, part-time producers, regardless of whether the farm owner has a farm manager in place or is employed, they won’t qualify. Distressed producers won’t qualify. Non-agricultural businesses, as well as double-dipping applications, won’t be able to apply for this fund.”
For farmers wondering if the fund can help them modernise, Harrison confirms that it supports the acquisition of energy solutions such as solar panels and batteries.
How to apply
Farmers interested in the fund are encouraged to get a due diligence report from an energy expert. For those who find the application process intimidating, Harrison says help is available.
“The easiest way is to contact a relationship manager in your area where the land bank has certain offices. You may access our website, www.landbank.co.za, and all the contact details are listed there. You may also use our client portal, which is situated in the upper left corner of our page. The relationship manager will then help you with the application process and help you put an application together.”
In this episode, Harrison also discusses:
- Limitations of the fund;
- Putting together a winning application and more.
Dive deeper into the episode and gain insights from the award-winning Farmer’s Inside Track, officially recognised as Africa and the world’s best podcast at the 2024 Digital Media Awards presented by WAN-IFRA, the global press organisation.
Option 1: Click here to listen on Spotify (all mobile and other devices)
Option 2: Click here to listen on any Apple device
ALSO READ: How to start or expand a profitable pig farming operation
Sign up for Farmer’s Inside Track: Join our exclusive platform for new entrants into farming and agri-business, with newsletters and podcasts.
