Minister details Land Bank’s success in boosting black farmers

The minister of finance, Enoch Godongwana, said an estimated 76 farmers have been commercialised over the past three financial years.

Godongwana was responding in parliament to written questions from Laetitia Heloise Arries of the Economic Freedom Fighters on the number of beneficiaries supported by the blended finance scheme administered by the Land Bank who have successfully transitioned to commercial farming operations in the past three financial years.

He was also asked what measures are in place to monitor and evaluate the success and sustainability of projects funded through the scheme.

The minister said the over 70 farmers, who initially operated as small-scale producers, have since transitioned into commercially viable agricultural enterprises.

“Since 01 April 2026, eight farmers have transitioned to commercial farming enterprises, comprising two from the Free State, four from the Eastern Cape, and two from Mpumalanga,” he said.

Support for young farmers, land ownership, market access

Godongwana provided additional details on support provided to certain blended finance scheme beneficiary groups:

1. Youth farmers

Youth farmers have successfully progressed from small-scale farming to commercial agricultural enterprises. During the last financial year, the Land Bank increased its (BFS) facilities to this segment, extending funding amounting to R32 million in support of their commercialisation and continued growth.
A young female farmer in Limpopo, who holds a bachelor of technology (B.Tech) degree in agricultural crop production, successfully transitioned from small-scale tomato production to a structured commercial farming enterprise. The farmer secured offtake agreements with Rhodes Food Group and an aggregator supplying Boxer, providing reliable market access, stable demand, and improved price certainty for her produce.

2. Farmers on leased land

Farmers progressed from farming on leased land to owning privately held agricultural land. Support provided included financing for the acquisition of privately owned farms, including second farm acquisitions; the installation of solar energy systems; the procurement of additional livestock; the purchase of tractors; and production inputs to support the cultivation of approximately 1 500 hectares.
Farmers who had been operating on leased farms in Lichtenburg and Ventersdorp were supported in acquiring and owning agricultural properties, thereby facilitating their transition from tenant farming to land ownership.

3. Scaling from small production

A farmer who commenced operations on 50 hectares has expanded production to 1 000 hectares under soya cultivation, and now supplies produce to Tiger Brands and Afgri, demonstrating successful growth from a small-scale to a commercially viable farming enterprise.
A farmer in the Free State has successfully progressed from subsistence farming to operating a commercial farming enterprise spanning more than 7 500 hectares, demonstrating significant growth in production capacity and commercial viability.

4. International market access

A small-scale farmer successfully transitioned into an internationally competitive commercial farming enterprise through support provided by the Potatoes South Africa Development Programme and the Land Bank. The farmer secured offtake agreements with Simba (PepsiCo) for potato production and Peppadew International for export markets, while also accessing domestic and regional markets, including Mozambique. These interventions diversified revenue streams, strengthened market access, and positioned the enterprise as a reliable supplier within both local and international agricultural value chains.

Pre- and post-investment support initiatives

Godongwana said the bank’s comprehensive approach to agricultural support combines innovative financing solutions with risk management interventions to improve farmers’ access to finance and strengthen the sustainability of agricultural enterprises.

“This integrated approach supports the growth and development of farmers across the agricultural value chain, from emerging producers to established commercial enterprises, thereby contributing to increased agricultural productivity, transformation, and food security in South Africa.

“The Land Bank has implemented integrated pre- and post-investment support initiatives, including facilitating access to markets, to reduce the risk of business failure among new entrants, emerging farmers, and black smallholder producers. These interventions are designed to strengthen the sustainability and commercial viability of farming enterprises, thereby improving their prospects for long-term success,” he said.

The minister’s response also included the plans by the bank to create an enabling environment for sustainable agricultural growth and rural development through financial literacy, innovation, and mentorship.

Key training interventions include:

Business management training: A programme designed to equip emerging farmers with essential skills in financial planning, record-keeping, marketing, and strategic decision-making.
Financial management training: A programme aimed at strengthening farmers’ capacity to manage budgets, track expenses, plan investments, and ensure long-term financial sustainability.