Giving a farmer access to finance is only one part of building a successful agricultural business. What happens before and after the money reaches the farm matters just as much.
By Talitha Janse van Vuuren, multimedia editor at African Farming
That was a key theme at a discussion on agricultural finance at NAMPO Cape 2026 in Bredasdorp this week.
The panel considered more than whether farmers can qualify for funding and asked what needs to be in place for them to succeed once they receive it.
For developing and emerging farmers in particular, that could mean access to markets, technical knowledge, mentorship, infrastructure and people who can help them navigate the risks that come with running an agricultural business.
One point raised during the discussion was that established commercial farmers often developed within support systems that went well beyond a relationship with a bank. New farmers entering agriculture without those networks can be expected to carry risks they may never have encountered before.
Simply putting someone on land, providing finance and expecting the business to work is therefore not enough, the panel heard.
Also read: New partnership targets finance and market access for emerging farmers
Farming needs an ecosystem
The discussion also addressed the basic conditions farmers need to operate successfully, alongside access to finance.
Water security was singled out as fundamental, and functioning roads are needed to move produce from farms to markets. Reliable energy, market access and compliance with agricultural regulations were also raised.
Animal disease was another concern, particularly because outbreaks can affect production, food security and South Africa’s ability to export agricultural products.
The broader argument was that these issues are connected. A farmer can have access to capital but still struggle if produce cannot reach a market, water is unreliable or the necessary technical and business support isn’t available.
Also read: ‘Keep knocking on doors’: Farmer shares why persistence pays when applying for farm finance
Partnerships could help close the gap
Closer partnerships between government, financiers, agricultural organisations and established commercial farmers were repeatedly raised as part of the solution.
The Western Cape’s approach to farmer support was discussed as one example, with partnerships and collaboration between government and the wider agricultural sector forming part of its model.
Land Bank also pointed to partnerships with government departments as an opportunity to extend funding to more farmers, particularly emerging producers.
The challenge now is not simply finding more money for agriculture, but building funding models around what farmers actually need to build businesses that can survive.
As one speaker put it during the discussion, the question should not stop at what it takes to qualify for finance, but should more importantly ask: What does it take to enable the farmer to succeed?
Also read: Land Bank defends Blended Finance Scheme as demand outstrips funding
