Where To Get Funding For Farming In South Africa
Overview
Welcome, future farmer! Are you starting up your farming business, have a great business plan but are getting stuck on financing your dream? Don’t give up, this is a reality for many up-and-coming farmers in Mzansi.
We know how essential farmers are for our day-to-day lives and food security. We also know that there are many funding opportunities out there to help future farmers to chase their agripreneur dreams.
Where To Get Funding For Farming In South Africa
1. Land Bank’s financing for farming & agri-enterprises
Land Bank acknowledges that farmers are the backbone of our society, and also that new generation farmers need access to resources and funding.
The bank assists with the financing of any farming-related expense, including:
- Farm purchases
- Capital financing for machinery and farm equipment (e.g. tractors, implements…)
- Production Loans
- Farm Improvements
- Infrastructure development (both primary and agro-processing)
The general requirements for clients to access funding from Land Bank include:
- Be a South African citizen or a permanent resident holder
- Have a clean credit record
- A detailed business plan
- Have enough security, equivalent to the amount being borrowed
- Be able to afford the repayments on a loan
2. Integrated food security and nutrition programme
This inter-governmental programme provides relief to households affected by food insecurity, in the form of agricultural help: seedlings, equipment, fertilisers, etc. The aim is to give beneficiaries the equipment they need to produce their own food. Groups or individuals who want to start a small-scale garden, and subsistence farmers in rural or urban areas, can apply.
4. South African Breweries (SAB) fund
While this fund is not solely for farmers, there is a great opportunity here.
The SAB fund focuses on providing funding for small, medium and micro-sized enterprises, in order to contribute to the economic and social empowerment of historically disadvantaged persons. This is done primarily by supporting entrepreneurship development and social innovation with a priority focus on providing opportunities within small, medium and micro-sized enterprises for women and youth, people in rural areas, as well as persons with disabilities.
5. National Development Agency (NDA) grants
The NDA funds existing and new projects, with two different types of funding: the request for proposals for new projects as advertised, or for programme formulation for existing projects.
Documents required:
- Copy of registration certificate
- Business proposal
- Copy of ID
6. AgriBEE Fund
The purpose of the AgriBEE Fund is to support small, medium and micro enterprises within the sector who wish to acquire shareholding in existing commercially viable and sustainable enterprises and to advance enterprise development through agro-processing and value adding activities to previously marginalised people who could not participate in the sector value chain.
7. Land Redistribution for Agricultural Development
This programme provides grants to previously disadvantaged individuals to get land for agriculture. Applicants who want to farm may apply for an LRAD grant, but have to make a contribution, either in cash or in labour, to a minimum of R5 000 (or more, if the grant is larger). Grants vary from a minimum of R20 000 to a maximum of R100 000.
Individuals or groups may apply. In many cases, groups already using communal land owned by local authorities, can apply to the programme to buy additional land. Women, youth and the disabled in particular are welcome to apply.
- Contact Agricultural Development: 012 319 8495
- Contact Land Acquisition: 012 312 9600
8. AGRA grants
Alliance for a Green Revolution in Africa (AGRA) makes awards only to those organisations that have been determined to possess the operational capability, technical expertise, adequate internal controls and experience to implement the AGRA transformative agenda. AGRA’s aim is to invest in projects that have measurable impact and can create meaningful, transformative change in the agriculture sector in Africa.
Frequently Asked Questions(FAQs)
How do I get farm funding in South Africa?
Applicants who want to farm may apply for an LRAD grant, but have to make a contribution, either in cash or in labour, to a minimum of R5 000 – more if the grant is larger. Grants vary from a minimum of R20 000 to a maximum of R100 000. Individuals or groups may apply.
How do I get a free farm in South Africa?
Visit the office of Rural Development and Land Reform Department and obtain the application form to apply for a grant in terms of the Land Redistribution for Agricultural Development Programme, from the respective department. Complete the application with required and relevant information.
How much does it cost to start a farm in South Africa?
How Much Does It Cost To Farm In South Africa? Agricultural land with high potential for grain production generally costs an average of R40 000 to R50 000 per square foot or R150 000 to R200 000 in Karoo
Which farming is most profitable in South Africa?
Macadamia nuts are hard to beat when it comes to the most lucrative crop per land area used in South Africa. According to statistics from the SA Macadamia Growers’ Association (Samac), the average export price for macadamia kernels in 2017 was R224.
How do I claim free land in South Africa?
You have to visit a lodgement office to claim. You have until 30 June 2019 to lodge a land claim. Mobile lodgement offices will visit your district during the claim period. You will receive a letter after the capturing of your claim information.
Is there free land South Africa?
Is There Free Land South Africa? According to President Cyril Ramaphosa in his State of the Nation Address in February 2020, an additional 135 117 hectares have been released to 275 farmers as a result of the president’s announcement. The province breakdown can be viewed as follows: Free State = 501 km.
How do I buy government land in South Africa?
Visit the ve you application electronically, visit www. Registration can be done at dalrrd.gov.za and can be done via the link that says “ALA”. Agricultural, land reform, and rural development departmental offices are places to get manual applications.
How much does it cost to start a small poultry farm in South Africa?
On average, it costs between R20,000 to R50,000 to start a chicken farm poultry business in South Africa. This depends on the size of the farm, what type of housing you will be using, where the farm is located, and the breeds you will be farming. Growing a day-old chick typically costs around R40 to the point of sale.
How much do farmers make in South Africa?
How Much Money Does A Farmer Make In South Africa? A Crop Farmer makes an average wage of 314.209 per year and 151 in South Africa in a year. Farmer salaries tend to fall between ZAR 232,129 and ZAR 387,850 in the area of Crop Farming.
How much is a hectare of land in South Africa?
The average price for high-potential arable grain production land falls between R40 000/ ha and R50 000/ ha, Karoo grazing farms go for about R2 000/ ha, and irrigated farms go for between R150 000/ ha and R200 000/ha.
What is a LRAD grant?
The LRAD grant allows for black South African citizens to access land specifically for agricultural purposes. This grant can be accessed, on an individual basis, per sliding scale from a minimum of R20 000 to a maximum of R100 000, depending on the participants’ own contribution.