Attendees of the first-ever African Farming AgriFund Connect Summit heard exciting news directly from Land Bank representatives about groundbreaking new services being launched for South African farmers.

By Maile Matsimela, Digital Editor at African Farming

Litha Kutta, Head of Partnership Development and Ecosystem Coordination at Land Bank, speaking on behalf of Land Bank CEO Themba Rikhotso, said the bank is launching an exciting new initiative that will transform how farmers learn and grow their businesses. “We are also going to be launching a farmers’ academy next year, where if you want to plant potatoes and you know nothing, you can go to the academy and learn everything,” Kutta revealed.

This comprehensive training facility will cover various commodities including potatoes, carrots and chicken production, as well as livestock farming. The academy will also teach farmers how to write proper business plans and understand the specific requirements for different agricultural commodities, ensuring they meet market standards from the start.

Digital Loan Applications: No More Paperwork Hassles

Furthermore, the days of complicated loan applications are numbered. “From next year you’re going to start seeing digital applications where you’re not going to get a long list of forms,” Kutta announced, promising a revolutionary change in how farmers access funding.

Farmers will be able to apply for loans directly from their phones, making the entire process faster, simpler and more accessible. This digital transformation will remove traditional barriers that have prevented many farmers from accessing Land Bank services.

Also read: Land Bank leads transformation through strategic partnerships

Land Bank Will Buy Equipment Directly for Farmers

In a groundbreaking approach to equipment financing, Land Bank will purchase machinery and inputs directly on behalf of farmers. “We’re going to go straight to the original equipment manufacturer as Land Bank and buy on behalf of our farmers and you get the benefit of the price,” Kutta explained.

This innovative service means farmers will benefit from:

Better prices through bulk purchasing power;
Direct access to manufacturer discounts and rebates;
Elimination of middleman markups; and
Guaranteed fair pricing on essential farming equipment.

Land Bank has evolved significantly since it was established to develop the agriculture industry and empower farmers. “We still have the mandate to develop the agricultural industry. But then because now there were black people who were excluded for various reasons … the mandate was expanded to say Land Bank must also start investing in the development of black farmers while still developing the agriculture industry,” said Kutta.

Kutta outlined the significant challenges that particularly affect black farmers in South Africa: “Lack of markets, lack of finance, lack of access to quality mechanisation, compliance management, skills development – all these things put together are challenges for black farmers.”

Land Bank’s Financial Solutions for Farmers:

Blended Finance Programme

One of Land Bank’s key offerings is its blended finance programme. Kutta explained: “Blended finance [is] a loan and a grant that allows you … to build a balance sheet.” This innovative approach typically includes a 50% grant component that is not priced, making funding more affordable for farmers.

“We’ve set ourselves [the goal of becoming a leader] in access to finances. We want to improve pricing – we are able to provide competitive pricing,” said Kutta.

Weather Index Insurance

The Land Bank has introduced innovative insurance products. “We’ve introduced a weather index insurance. Instead of insuring a farmer based on their individual risk, you insure them based on the risk of the area,” Kutta explained. This approach helps manage area-based risks more effectively.

Equipment Finance and Credit Guarantees

The bank is piloting equipment finance and introducing credit guarantee instruments to help farmers without traditional collateral access funding.

Market Access and Partnerships

Major Retail Partnerships

Land Bank has secured significant partnerships with major retailers. “We help farmers with market access… We’ve got partnerships, for example, with Heineken, we work with Boxer, we work with McCain and we’ve added Woolworths,” said Kutta.

The Woolworths partnership is particularly substantial: “We signed with Woolies in June. [It’s] a R300 million funding package … helping farmers to be linked to Woolworths.”

Aggregation Solutions

Understanding that scale matters, Kutta explained: “Our job is to make sure that we help farmers not to be too small but to be big enough to start becoming commercial, where they can get the benefits of the market.” He addressed the aggregation challenge: “There’s a lack of aggregation. In some areas, there are too many farmers, so your private sector buyers don’t want to buy from 100 farmers; they want aggregated buyers.”

Provincial Collaborations

Land Bank is expanding its reach through provincial partnerships. “We are working with provinces… We’ve signed with the Eastern Cape… Next week we’re going to the Free State… By the end of this financial year we’ll start with all provinces,” Kutta announced.

The Eastern Cape partnership demonstrates the model: the province leveraged R56 million in Land Bank investment, with R4 million provided by the province as grant funding.

Advisory and Support Services

“Our financing includes providing technical support to a farm… After we finance, we can then provide you with the support,” Kutta explained. The bank doesn’t just provide money and walk away. “Part of the job of my unit is to then help you to build a business plan … because we know what they want,” Kutta said, referring to their understanding of banking requirements.

Market-readiness Training

“From February next year, we’re going to do market-readiness [training]… For example, to say, ‘If you’re going to supply Spar, these are the 10 things they are looking for,’” Kutta announced, helping farmers understand retailer requirements.

Building Resilience for the Future

“We need resilient farmers because there are issues of climate change,” Kutta noted, emphasising the bank’s focus on sustainability and preparing farmers for environmental challenges.

Application Requirements and Compliance

Farmers need to meet specific requirements to access Land Bank funding:

Compliance with regulatory and market requirements such as food safety standards;
Strong and viable business plans aligned with Land Bank’s guidelines;
A history of fulfilling financial obligations; and
For blended finance, applicants must present clear financial gaps that funding can bridge.

Kutta stressed the importance of compliance: “If you must comply with requirements, don’t say it’s racism.”

Warning Against Side-selling

Kutta issued a strong warning against “side selling”, where farmers violate contracts by selling to alternative buyers. “The problem with those things is that you build distrust in the system,” he cautioned.

Also read: Land Bank pleased by youth participation in agriculture

Land Bank’s Partnership Approach

“Development has to be done, and we have to intervene … but we can’t do it alone. We have to get partners to work with us,” Kutta explained, emphasising the collaborative approach.

He concluded with an invitation: “We are a partner for you. All we want farmers to do is focus on farming.”

How to Access Land Bank Services

Farmers interested in Land Bank funding should:

Attend funding-readiness programmes to understand the National Credit Act and application processes;
Prepare comprehensive business plans with Land Bank’s advisory support;
Ensure compliance with all regulatory requirements; and
Apply through the digital application system from next year.

Land Bank’s staff will assist in following up on loan application statuses and fielding enquiries. The bank is committed to helping farmers understand the application process and requirements.