In a written response received on 16 October, Land Bank (the bank) answered questions sent by Farmer’s Weekly, outlining its funding priorities and the steps affected farmers should take.
This follows Farmer’s Weekly’s reporting on funding shortages and delays affecting producers preparing for summer planting.
“The additional [R500 million] allocation is intended to support applications that have already been received by the bank, and does not provide for the reopening of new applications at this stage,” Land Bank said.
Existing transactions take priority
The bank said priority consideration would first go to qualifying transactions that had met disbursement requirements, followed by approved transactions awaiting finalisation of contractual and disbursement requirements, and qualifying applications already undergoing credit assessment.
It added that the allocation would support historically disadvantaged farmers, including land reform beneficiaries.
“Inclusion in the existing application pipeline does not automatically constitute approval or a guarantee of funding,” the bank said.
Disbursements will be subject to the beneficiary eligibility criteria and funding conditions agreed between Land Bank and the Department of Land Reform and Rural Development (DLRRD).
Seasonal production needs considered
Farmers with time-sensitive production finance needs will receive priority consideration, subject to each transaction’s status, eligibility and approval requirements, and available funding.
Some producers have incurred costs or taken on additional credit while awaiting blended finance.
Athol Trollip, ActionSA MP and a member of Parliament’s Portfolio Committee on Agriculture, previously warned that delays in accessing financial support could have serious consequences for farmers facing seasonal planting deadlines.
No reopening date announced
The R500 million contribution was announced in a joint statement on 8 October under a memorandum of agreement between Land Bank and the DLRRD. The grant funding covers the remainder of the 2026/27 financial year and will be combined with Land Bank loans. It follows an additional R150 million contribution from the Department of Agriculture.
Land Bank is discussing longer-term funding arrangements with government partners and intends to resume new applications when sufficient grant resources become available.
The bank’s response did not give a reopening date, confirm whether the R500 million had been transferred to Land Bank, or specify when payments from this allocation would reach farmers.
It also did not state how many existing applicants could be funded, the value of the outstanding pipeline, or the remaining grant shortfall.
Loans and support remain available
Land Bank said conventional agricultural finance remained available as 100% loan funding for qualifying farmers, subject to normal credit assessment and approval requirements.
Its response did not specify the interest rates or security requirements for those products, or whether farmers awaiting BFS assistance could later incorporate an interim loan into a blended finance agreement.
Through its pre- and post-finance support programmes, Land Bank said it worked with agriculture sector partners to provide farmers with technical assistance, mentorship, business development, and production support, and to improve their market access.
Existing BFS applicants should contact their designated relationship managers or provincial offices about their transaction status, outstanding requirements, and anticipated funding arrangements. Unresolved service-related matters can be escalated to [email protected]. Prospective borrowers should contact their nearest Land Bank office about conventional loans.
