South Africa’s agriculture sector is positioning black producers, smallholders and emerging farmers at the centre of its latest budget priorities, with billions of rands committed towards farmer support, blended finance, training, market access and infrastructure development.
By Maile Matsimela, digital editor at African Farming
Presenting the Department of Agriculture’s Budget Vote in Parliament on 15 May, Agriculture Minister John Steenhuisen and Deputy Minister Nokuzola Capa outlined a broad strategy aimed at growing the sector while increasing participation of black farmers across commercial value chains.
Government says the focus is no longer only on increasing production, but on ensuring that black producers are integrated into profitable agricultural markets, agro-processing and export opportunities.
R9.8 billion approved for black commercial producers
One of the strongest announcements from the budget was the continued expansion of the Blended Finance Scheme, which government says has already approved approximately R9.8 billion in support for 627 black commercial producers since its inception.
According to the department, the funding combines grants and loans through partnerships involving the Land Bank, Industrial Development Corporation (IDC) and private financial institutions.
Steenhuisen said the programme is increasingly becoming a key tool to integrate black farmers into higher-value agricultural sectors and strengthen long-term sustainability.
Deputy Minister Capa added that through the IDC partnership alone, over R1 billion in grant funding and R3.15 billion in loan funding has already been approved to support 42 black producers while sustaining thousands of jobs.
She further noted that the Land Bank blended finance scheme has approved more than 610 applications since October 2022, helping farmers access production finance, infrastructure development and working capital.
Also read: Limpopo puts R813.5 million into farmer support and production development
Government targets increased black participation
Government also used the budget to outline transformation targets linked to the Agriculture and Agro-processing Master Plan (AAMP).
Capa said the department aims to increase black participation in grain production from 4% to 20% by 2030, livestock from 32% to 40%, fruits from 2% to 10% and vegetables from 15% to 29%.
Steenhuisen acknowledged that while some progress has been made, transformation within agriculture remains uneven across commodities.
“The share of value produced by black participants in commercial value chains has increased from 11% to 13%, with much of that progress driven by gains in horticulture,” he said.
He added that government’s challenge is to ensure black participation becomes embedded across the agricultural system instead of remaining concentrated in only a few sectors.
CASP remains central to farmer support
Farmer support remains one of the biggest allocations in the budget, with Programme Three: Food Security and Support receiving R3.2 billion.
In addition, Capa announced that R2.3 billion will support approximately 33 000 black producers through the Comprehensive Agricultural Support Programme (CASP) during the 2026/27 financial year.
The support includes:
- infrastructure
- mechanisation
- production inputs
- extension services
- mentorship
- training
- market access support
The department says the programme will target around 6 000 smallholder farmers, 27 000 subsistence producers and commercial black farmers across the country.
Government also plans to assist approximately 58 000 vulnerable households with food production initiatives aimed at strengthening household food security.
Also read: Budget 2026 | Ten things to know
Focus on youth, women and vulnerable groups
A major focus throughout the speeches was the inclusion of women, youth and people with disabilities within agriculture.
Capa said the department’s Norms and Standards for the Inclusion of Designated Groups targets 50% participation for women, 40% for youth and 10% for persons with disabilities in agricultural support programmes.
She said government recognises that vulnerable groups often struggle with access to resources, markets, training and mechanisation support.
“To attract participation of vulnerable groups in agricultural production and food security, an enabling support environment and mechanisation should be made available,” Capa said.
The department also announced that:
- 14 439 farmers are expected to receive training in 2026/27
- 115 farmer projects will receive mentorship
- 3 651 youth are expected to benefit from agricultural training initiatives
Irrigation, climate-smart farming and energy support
Government says infrastructure development and climate resilience are becoming increasingly important as farmers face rising input costs, drought and electricity challenges.
The department confirmed that CASP funds will continue supporting irrigation revitalisation projects in provinces including Limpopo, Eastern Cape, KwaZulu-Natal, North West and Northern Cape.
At the same time, the Agro-Energy Fund is helping producers invest in energy resilience systems linked to irrigation, intensive production and cold-chain infrastructure.
Capa said the Agro-Energy Fund has already approved 70 transactions worth R160.2 million, supporting producers across multiple provinces and farming scales.
The department is also promoting climate-smart agriculture through rainwater harvesting projects, tower gardens and water-efficient technologies in partnership with the Agricultural Research Council (ARC).
Also read: Transformative measures for black farmers unveiled in Steenhuisen’s budget vote speech
Market access and export opportunities
Government further highlighted market expansion as a major opportunity for emerging and commercial black farmers.
Steenhuisen said South Africa has expanded citrus exports to China, opened market access into the Philippines and strengthened agricultural trade relations with Vietnam.
He said the department wants the benefits of export growth to reach farmers across the value chain, including smallholders and emerging producers.
To support this, the department plans to expand its SA-GAP certification programme to help more smallholder farmers enter formal domestic and export markets.
Also read: CGA urge Steenhuisen to make citrus growth a priority in budget
