Speaking during a Grain SA-sponsored Nation in Conversation discussion at Nampo 2026 on empowering developing farmers to achieve sustainable growth and transition into commercial agriculture, Jeremia Mathebula, vice-chairperson of Grain SA, said Phahama Grain Phakama (PGP) is the organisation’s flagship farmer development programme, helping black grain farmers move from subsistence level to commercial production.
He said the programme aims to drive transformation across South Africa’s grain value chain.
“PGP is the largest structured farmer development programme in the grain industry, supporting more than 18 000 producers representing 150 000ha, ranging from subsistence to new-era commercial farmers,” he explained.
“We try to create valuable opportunities for engagement between farmers, industry stakeholders, and development partners focused on strengthening sustainable growth within the industry.”
The programme’s key elements are mentorship, input access, markets, and finance, and it aims to build resilience and sustainability in the grain industry.
Mathebula noted that although many black farmers have access to land and show passion, resilience, and drive, an enabling system has been missing for many years.
“Our approach is deliberate and developmental. We’re not just offering support; we are building commercial pathways. Our wish is to take small-scale farmers and, through our programme, develop them into fully-fledged commercial farmers,” he said.
The PGP programme supports farmers through:
- Study groups
- Demonstration trials
- Farmers’ days
- A Farmer of the Year competition
- Mentorships
The panel identified several limiting factors for inclusion, focusing on the following topics:
- Lack of training, including knowledge, skills, and experience
Farming is a complex field that requires an understanding of a wide range of issues. Theoretical knowledge alone is not enough; farmers learn from years of experience. In South Africa, developing farmers are often new entrants navigating a demanding sector where profit margins are under extreme pressure and there is no room for error. How does one gain this experience, and who will catch you if you fall?
- Lack of access to finance, including production credit
According to the Free State MEC for Agriculture Elzabé Rockman, access to capital is both the greatest accelerator of progress and the most significant constraint farmers face.
Developing farmers are finding it increasingly difficult to access production loans, as profit margins are tight and the risks are high.
Quinton Naidoo, head of socio-economic development at Kagiso Trust, said securing funding is a serious barrier to farmers’ progression from subsistence to commercial production.
“Funding is not the problem; access to funding is the problem, and often it is a financial readiness issue,” he explained.
Financial readiness involves the ability and know-how to assess your current financial situation, setting clear goals for your business and taking actionable steps to improve financial health. It encompasses budgeting, managing debt, building savings, maintaining good credit, and planning for emergencies, retirement, and major life events.
Being financially ready enables farmers to handle unexpected expenses, make informed decisions, and achieve their business objectives.
Naidoo noted that in many instances, farmers submit funding applications but never receive feedback on why they were rejected.
“The assumption that people know how to access finance is at the core of many programme or initiative failures.”
He said more needs to be done about financial readiness, helping farmers to be more proactive and thus manage their financial obligations so they can weather unexpected challenges.
Key components that need attention are:
- A clear picture of income, expenses, debt, and assets.
- Distinguishing between needs and wants.
- Maintaining adequate savings to withstand unforeseen financial shocks.
- Understanding and managing interest payments.
- Setting financial goals and updating them as circumstances change.
- Mechanisation and capacity-building constraints
Years of low profit margins have resulted in a decline in the condition of developing farmers’ tractors and implements. They need to make money to be able to invest in mechanisation.
According to African Farmers’ Association of South Africa President AJ Mthembu, one of the single most important problems in capacity building is that the results of the training provided at institutions are not being seen on farms.
“Education is manifested in behavioural change, and this is lacking on farms,” he said.
Mthembu added that many institutions and organisations are still working in silos regarding training: “We need more collaboration and less finger-pointing.”
- Constraints due to land access and land tenure
Addressing the issue of land tenure, Minister of Agriculture John Steenhuisen said the financial sector follows an asset-based system.
“A land lease is not a bankable asset. We need to transfer leases into ownership. Where you have a farmer who has been farming successfully for many years, he or she has earned their stripes and should receive the title deeds to the land,” he said.
“We need to give over the land so that these farmers can go from strength to strength and be able to leave a legacy.”
He added that the industry needs to look at capital within a system that understands agriculture, and that this is where Land Bank can play an important role.
He said he believes the new Presidential Envoy on Agriculture and Land, Wandile Sihlobo, can play a valuable role, as he knows and understands what needs to be done.
“I am committed to continue engaging with my counterpart, Minister of Land Reform and Rural Development Mzwanele Nyhontso, on this issue,” Steenhuisen concluded.
GP van den Berg, territory sales manager at Bayer Crop Science, said the company has been involved in the PGP programme for many years and, over the past couple of years, has earmarked its contribution towards supporting development coordinators in the field.
Development coordinators in the various regions are responsible for closing the gap between input supply companies and farmers by involving the latter in trials and training. The trials showcase the latest hybrids and products, helping to ensure these advanced technologies are accessible to developing farmers.
