6. Funding
Getting Finance
You need to have financial strength to support your routine production cycle. There are different ways to go about it. The Land Bank supports resource-poor farmers to become active participants in mainstream commercial agriculture through Agricultural entrepreneurship.
The Bank offers unsecured loans of up to R25 000. These are usually offered to small-scale farmers.
However, it is imperative for the loans must be used for agricultural purposes only.
The Land Bank offers short, medium and long term loans as well as Instalment Sale Finance which is a type of medium-term loan where the goods that you buy act as the main security for the loan: the goods belong to the Bank until the loan is paid in full. It enables all farmers, especially those with limited assets to grow their businesses.
Typical uses:
- Farming equipment
- Implements
- Vehicles
- Livestock.
This finance package is available for periods between 3 and 10 years, depending on the expected length of life of the asset. Payments can be made on a monthly, quarterly, six-monthly or annual basis. An individual farmer or a group or any legal entity may access this type of loan.
Funding for farms outside South Africa’s borders
Approach Alliance for a Green Revolution for Africa (AGRA). If they cannot help, they may well be able to guide you to an organisation that can.
AGRA’s programmes and partnerships work to make changes across various agricultural systems. Integrated programs in seeds, soils, market access, policy and partnerships, and innovative finance help to transform various subsistence agri-businesses into sustainable, viable commercial activities.
One example is found in the Southern Highlands of Tanzania, where 700 000 smallholder farmers produced a record maize harvest in 2009, helping to feed drought-stricken regions of the country.