Minister of Agriculture John Steenhuisen has called for state-owned agricultural land leased to farmers to be transferred into private ownership, saying this would help emerging farmers unlock funding and build sustainable farming businesses.
By Lebogang Mashala, editor at African Farming
Steenhuisen made the remarks during a Nation in Conversation panel discussion at Nampo Harvest Day 2026. The discussion focused on structural barriers limiting access to finance for emerging farmers and explored practical ways to leverage state-owned land to improve funding opportunities.
The panel discussion was hosted by Phahama Grain Phakama (PGP), the development arm of Grain SA.
“There is no need for the state to be a landlord when we have deserving farmers who have already proved themselves to be successful. We should transfer this land to them and give them an asset they can use to approach private lenders and secure the funding they need,” Steenhuisen said.
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Land Ownership Key to Investment
Steenhuisen said leased land remains a major challenge because leases are not recognised by banks and other financial institutions as bankable assets.
“Unfortunately, leases are not bankable assets, and this is an issue I have raised many times during Cabinet lekgotla discussions and in engagements with [Land Reform and Rural Development] Minister [Mzwanele] Nyhontso. Land needs to be released with title deeds to farmers,” he said.
According to Steenhuisen, land ownership will encourage farmers to invest in improving their operations while also creating long-term family wealth.
“This gives farmers a reason to invest their own resources into the land, make it productive and continue growing their businesses. It also allows them to leave a legacy for their children,” he said.
He added that transferring land ownership to black farmers would also contribute to meaningful redress for the injustices of apartheid.
“One of the most devastating effects of apartheid was robbing black South Africans of an asset base through the Group Areas Act and various other interventions. What we need to do as active redress is hand over the land that the state has already paid for,” Steenhuisen said.
PGP Highlights Farmer Development Progress
Jeremiah Mathebula, Grain SA vice-chairperson and PGP chairperson, said the PGP programme has made significant strides in developing grain farmers, although challenges around access to land and funding remain.
He said the organisation works with several partners, including Bayer, Kagiso Trust and the African Farmers’ Association of South Africa (AFASA), to support farmer development initiatives.
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Bayer Proud of Longstanding Partnership
Speaking during the discussion, GP van den Berg, sales manager at Bayer South Africa, said Bayer’s support for PGP is aligned with the company’s global slogan, “Health for all, hunger for none”.
Bayer has partnered with PGP for more than a decade, previously through the Beyond Abundance programme, to support developing and small-scale farmers through initiatives focused on food security, input access and farmer training.
Van den Berg said Bayer’s financial contribution has enabled PGP to keep coordinators operating from seven offices across the country.
“What we have noticed over the years is that PGP knows exactly what is happening on the ground through these coordinators,” he said.
“In total, through the PGP programme, about 18 000 farmers covering just over 130 000ha, from subsistence farmers to new-era commercial farmers, are being supported by these coordinators.”
He added that mentorship, study groups, training and knowledge transfer remain central to the success of the programme.
“For us, this partnership is very well coordinated through study groups, mentorship, knowledge transfer and training, and that is what makes us proud to be part of this project,” said Van den Berg.
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