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South Africa: Lease land to black farmers, says bank

South Africa should consider leasing farms to previously disadvantaged black farmers with an option to buy to speed up land reform, a financial institution which gives loans to farmers said in a report.

South Africa set a target of handing over 30% of commercial farmland to blacks by 2014 as part of a plan to correct racial imbalances in land distribution caused by apartheid.

But so far only about 7% of the commercial farmland has been transferred to black farmers with government saying lack of funds to purchase land has constrained the process.

“The government should consider renting farms for a few years, with an option to buy. This will accelerate the process of transferring land to black farmers,” Land Bank, which reports to treasury, said in a report on financing problems facing emerging farmers in the country.

A new South Africa draft land policy proposes limits to land ownership by its own citizens and foreigners, as part of plans to resuscitate its flagging land reform programme.

The bank also said about 53% of farmers who are just starting out have failed to repay their loans with the bank and it would consider writing off more debt for accounts opened between 1997 and 2005.

According to the bank’s chief executive officer Phakamani Hadebe the institution has written off about R3.5 billion (US$501 million) to R4 billion of debt in the past six years.

“We have now reviewed our business model . . . we have reached a stage where we can no longer take the risk on the balance sheet,” Hadebe said.

The bank said farmers needed to be provided with post-settlement support to help them succeed and lower interest rates for small farmers should be considered.

Government has acknowledged that very few of the farms transferred to blacks under the country’s land reforms were productive, partly owing to poor management.

Land reform is a sensitive issue in South Africa and has been brought into focus by the decline in agriculture in neighbouring Zimbabwe, where white commercial farmers were often evicted violently by President Robert Mugabe’s government. (Reuters)

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  • Mr Desmond
  • Mlondolozi Ntumba

    This is a great platform to discuss such initiatives and opinions. I, like others, am looking for the land to farm livestock of different kinds. Problem! no land to lease! daily I’m on the internet looking for the land to lease for farming in KZN, but none. can somebody help please!

  • I would like to lease a farm anywhere in South Africa preferably for crop farming or to lease a farm for cattle, and goat around Belebela area . Please advise of any available and what is the processes

  • I would like to lease a farm anywhere in South Africa preferably for crop farming. Please advise of any available and what is the processes

  • Harman

    I guess United States should also start retaking farms from black farmers. But it will be illegal in civilized world. Is South Africa is civilized? I don’t think so.

  • Charles Sterzel

    Some interesting information, for those wanting to start farming. On 1 hectare, you can grow 30,000 cabbages.

  • MSANE TRIBE HERITAGE TRUST has been established to fight land restitution and property ownership all over KwaZulu/Natal, where our great grand parents were historically dispossessed their own land. We have archival evidence and proof. We need to have our own farms and property to create job opportunities for our own people.

  • M. E. Mogale

    I am truly interested in live stock farming in PTA ,Bronkoorspruit, Brits and Lephalale areas. I am keen to lease land to buy,should the department approve that.

  • Sifiso Dlodlo

    I would like to lease a farm for cattles,goats,pigs etc.

  • need land need land need land. I am disappointed. Lot of stock and broken equipment and experiencing hart times. Mines owning zillions(malty billions)of unused land and mostly given to selfish white farmers in Carletonville. I am heartbroken NB Veld fires and they have nothing to loose and our families are stuffing. I am hurt and disappointed.

  • Mfana Simon Ndlozi

    I am Mr Mfana Simon Ndlozi. I like farming and I will be happy if I can know how can I have an access to farming loans,

  • mr merlin cupido

    Hi what can I do or where can I get help to buy and own a farm please I contact all the banks even land bank and all wants huge deposists which I don’t have I even contact rural development and I even made friends with some of the farmers in the overberg where I wanto farm and the more then willing to mentor me because I believe we must work together and learn from them so that I can one day help other upcoming farmers to my only problem is finench there are farms for sale in the area like the one was a sheep farm but they farm cattle now and size 870ha where can I go and get help please I can get some help for the farm but I must get the farm first

  • mr merlin cupido

    I am a historical disadvantage man who would really love to farm between swellendam and heidelberg because I grew up here my problem is I got no money I spoke to the white farmers in the area and they more then willing to be a mentor for me because they got all the experince and I belive to we must learn from them I went to go look at a going concern dairy farm in the area what a need farm my problem the money I knocked on the banks doors even land bank and all of them wants a depost which I don’t have I even contact rural development they said they got no money for this year where can I get help please I got so many dreams for this farm like to uplift the workers and to go green like solar power to safe I really want to farm please my contact number is 0844724704 if there is someone that can help me

  • mr merlin cupido

    Hi I need help please to get a farm I looked aroun and did find one a going concern dairy farm in the overberg but where will I get help who can buy the farm for me is there any place I can go to I spoke to the farmer and he willing to corperate if the government wil buy the farm for me and I spoke to another farmer and he willing to be my mentor look we must use the old farmers to teach us and be friends with them to go forward on who’s door can I knock for help please help me please

  • mr merlin cupido

    Hi how can our government help me with a farm I grow up on a farm but now in cape town but want really to farm I would love to farm between swellendam and heidelberg in the westen cape please because that is wot I know is grain and animals I spoke to a farmer in the area and he willing to be my mentor because we must use the white farmers to teach us and we have to learn from them like this farmer whant to help and teach me my problem is to get a farm but to be honst I don’t have the money there is farms for sale in this erea and why must one ore two farmers sit with 4 to12 farms I need help please

  • mr merlin cupido

    I need help please to have my own farm please I spoke to a white farmer between swellendam and heidelberg. In western cape and he willing to be my mentor to guide me if I can get a ferm in the erea and there are a lot of people with no work that I also want to help and uplift them and they know farm work I ask please to help me in this area to own my own farm please

  • Nathi Dube

    I am very interested in farming. I am interested to learn from experience farmers. If I can get an opportunity I would grab it with both hands. I am willing to learn.

    Unforetunately for me my family were moved to hills in KZN, I think by old government I am told and proper farming is not possible. In my family generation, my father was the first to have a need to go and look for work in the factories then myself. I am intersted in commercial farming not domestic farming as my forefathers were doing.

    I will try to build a clean credit record, maybe I can get some loan from the bank to buy sizeable farm for start.

  • Elliot

    I AM CURRENTLY WORKING ON A FARM I DON’T HAVE A CLAIM I CAN BE GLADE IF I CAN GET THE FARM ONE DAY TO SHOW OFF MY EXPERIENCE I HAVE SINCE I WORKED FOR THE FARM FOR THE PAST 13 YEARS

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