Securing funding remains one of the biggest hurdles for young farmers looking to scale their operations. At the recent Food For Mzansi Young Farmers Indaba, a panel of experts shed light on the various grants and financial support mechanisms available to agricultural entrepreneurs.
The session provided practical guidance on navigating the application process, standing out in a competitive funding landscape, and unlocking opportunities to take farming businesses to the next level.
Nontsikelelo Makaula, executive director of operations at the National Youth Development Agency, highlighted the importance of skills development and financial systems in running a successful farming business.
“Young people that are starting in the business, some of them don’t know about farming. For them to get to a level where they are ready to apply, we take them through the most important aspects. Firstly, the skills to really understand the business and the entire value chain. Secondly, the financial know-how and understanding,” Makaula said.
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Integrated support for farmers
Tshego Selepe, head of agribusiness at the Kgodiso Development Fund, emphasised the importance of not only providing funding but also ensuring market access and technical support.
“We provide funding, which is production finance for the farmers to plant crops that PepsiCo cannot. So these are potatoes, white maize, red speckled beans, ground nuts, raisins, and the list goes on. This is the funding side. Secondly, we assist farmers with access to markets.
“Beyond funding and markets, Kgodiso provides technical support through expert advisors who guide farmers on pest and disease management,” Selepe said.
Christopher Chaka, Gauteng provincial manager at Land Bank, cautioned farmers against planting crops without securing a market first.
“If anything, don’t go and bury your money in the ground if you don’t know who you’re going to sell the product to. That’s suicide.
“The agronomy support is starting from the aggregator because there is a policy that Tiger Brands wants. There are certain cultivars that they will expect you to use. There are certain chemicals that they will expect you to use,” Chaka explained.
Compliance, market access, and financial planning
Seatla Nkosi, development specialist for agro-processing and agriculture strategic business unit at the Industrial Development Corporation (IDC), highlighted the importance of financial planning in farming operations.
“Our funding is based on the business, what the business will be able to create,” he said.
Nkosi also stressed the need for farmers to align their operations with evolving market requirements and regulatory frameworks. He acknowledged that market access remains a critical concern for farmers, particularly when dealing with corporate buyers.
Aron Kole, managing director of FarmSol, reinforced the need for compliance with legislative requirements such as Environmental Impact Assessments (EIA) and water rights before launching agricultural projects. He also pointed out that funding applications must be thorough and well-documented to increase the chances of approval.
Kole emphasised that while the market may not always be predictable, farmers must be well-prepared and adaptable to industry shifts.
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