Strong demand for the Land Bank’s blended finance scheme has prompted the bank to temporarily pause new applications, as available grant funding for the 2026/27 financial year has been fully committed.
The Land and Agricultural Development Bank of South Africa has temporarily stopped accepting new applications for its blended finance scheme for the remainder of the 2026/27 financial year, unless additional grant funding becomes available sooner.
The scheme combines a repayable Land Bank loan with a non-repayable grant funded by the department of agriculture, reducing the overall financing burden for qualifying farmers.
The bank said demand for the scheme has significantly exceeded the annual grant allocation available. Since the blended finance scheme was launched in the 2022/23 financial year, approximately 540 clients and beneficiaries had been supported by the end of 2025/26.
The department of agriculture currently provides Land Bank with an annual grant allocation of R325 million for the scheme. The blended finance scheme is primarily aimed at improving access to affordable finance for qualifying historically disadvantaged producers and supporting their greater participation in the agricultural economy.
Existing commitments prioritised
In a release issued today, Land Bank said the remaining 2026/27 grant funding will be prioritised for blended finance scheme facilities where contractual commitments have already been concluded.
The temporary pause is intended to ensure the bank manages the available grant funding responsibly and does not enter into further grant-supported commitments without certainty that the necessary funding is available.
The bank stressed that the blended finance scheme has not been discontinued.
Under its current funding arrangement with the department of agriculture, a further annual grant allocation of R325 million is expected for the 2027/28 financial year. Subject to the availability of that funding and the bank’s assessment of grant capacity, Land Bank expects to reopen the scheme for new applications.
Land Bank is also engaging with the department of agriculture, National Treasury and other potential funding partners about additional and alternative sources of grant and concessional funding.
What happens to existing applications?
Blended finance scheme facilities where contractual commitments have already been concluded will continue to be managed according to the applicable funding agreements.
Applications that are already in the bank’s origination and credit pipeline, but where grant funding has not yet been contractually committed, will be assessed individually.
Where appropriate, Land Bank may consider whether the underlying financing requirement can instead be supported through a 100% repayable Land Bank loan without the blended finance scheme grant component.
The pause does not affect Land Bank’s broader agricultural lending activities.
The bank says it remains open for business and continues to offer 100% loan financing through various agricultural finance products, including mortgage loans for the acquisition of agricultural land and property, revolving credit facilities for working capital and production requirements, installment finance for machinery and equipment, term loans and structured finance solutions.
Farmers and agribusinesses requiring funding are therefore encouraged to continue approaching the bank. Applications will be assessed through its normal credit and approval processes.
Acting chief executive Jabu Mphambo said the strong demand demonstrated the role that affordable and innovative finance can play in broadening participation in South African agriculture.
“The temporary pause in new applications is a responsible measure to ensure that further grant-supported commitments are aligned with the grant resources available to the scheme,” Mphambo said.
He reiterated that the blended finance scheme had not been discontinued and that Land Bank remained open for business through its 100% loan offerings.
“We will continue working with government and other partners to mobilise additional funding while supporting qualifying farmers and agribusinesses through the Bank’s broader range of agricultural financing solutions,” he said.
Land Bank said it would keep clients, prospective applicants and other stakeholders informed of material developments and communicate when applications for the blended finance scheme can resume.
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