Farmers awaiting disbursements face uncertainty as Land Bank confirms that its R325 million grant allocation for 2026/2027 has been fully committed.
By Lebogang Mashala, editor at African Farming
African Farming approached Land Bank after receiving enquiries from farmers who were concerned about the delay in disbursements, particularly with the summer planting season approaching. The farmers say they received approval letters for blended finance but have yet to receive their funding.
After weeks of uncertainty, Land Bank has now confirmed it has temporarily paused its Blended Finance Scheme (BFS) after committing the full grant allocation available for the 2026/2027 financial year.
Importantly, the Land Bank stressed the scheme has not been discontinued.
The BFS is a 10-year partnership between the Department of Agriculture and Land Bank, under which the department provides an annual grant allocation of R325 million.
Since the scheme was launched in the 2022/2023 financial year, approximately 540 clients and beneficiaries had been supported by the end of the 2025/2026 financial year.
Under the current arrangement, a further R325 million grant allocation is expected for the 2027/2028 financial year.
The bank said it would communicate the reopening of applications once sufficient grant funding was available to support new BFS commitments.
It is also engaging with the Department of Agriculture, National Treasury and other potential funding partners to explore additional and alternative sources of grant and concessional funding.
Also read: Parliament sounds alarm over Land Bank Blended Finance Scheme funding gap
Farmers face planting-season pressure
The announcement has prompted concern from the African Farmers’ Association of South Africa (AFASA), which said the timing was particularly problematic given the summer planting season is due to begin within days.
AFASA Grains said farmers had already prepared production plans and incurred costs in anticipation of receiving funding.
It warned the funding interruption could leave affected farmers struggling to secure essential production inputs, such as seed, fertiliser, chemicals and diesel, at short notice.
The organisation also raised concerns about farmers’ ability to service existing loans if they are unable to plant and generate income, as well as the potential impact on their credit records and future access to agricultural finance.
AFASA Grains further questioned the implications for the national objective of commercialising black grain farmers if approved and pending applications cannot be funded.
The organisation has called on the National Treasury, Department of Agriculture, Department of Land Reform and Rural Development, and Land Bank to intervene urgently.
Among its demands are:
- clarity on the status of affected applications,
- additional funding for qualifying farmers,
- prioritisation of farmers who need to commence planting immediately,
- interim financial arrangements to prevent farmers from missing the planting window, and
- protection for farmers from adverse credit consequences arising from funding delays beyond their control.
“Agriculture cannot be postponed until the next funding cycle,” AFASA Grains said, warning that once the planting window has passed, the season – and the income required to repay existing loans – could be lost.
Also read: Beyond the ‘No Land Bank buyers’ debate
Land Bank: ‘BFS has not been discontinued’
Jabu Mphambo, Land Bank acting chief executive officer, said the strong demand for the BFS demonstrated the important role affordable and innovative financing solutions play in broadening participation in South African agriculture.
“The BFS has not been discontinued. Land Bank remains fully open for business and continues to provide 100% loan financing to qualifying farmers and agribusinesses.”
Mphambo said the bank would continue working with government and other partners to explore opportunities to mobilise additional grant and concessional funding to support emerging farmers and expand access to affordable agricultural finance.
“Farmers and agribusinesses requiring funding are therefore encouraged to continue approaching Land Bank,” he said.
“Applications will continue to be considered in accordance with the bank’s normal credit assessment and approval processes.”
With the summer planting window fast approaching, the immediate concern, however, remains farmers who have already made production commitments based on expectations of blended finance and are waiting for clarity on the timing of their disbursements.
Also read
Land Bank defends Blended Finance Scheme as demand outstrips funding
Farmers need more than finance to succeed
‘Keep knocking on doors’: Farmer shares why persistence pays when applying for farm finance
Game-changing solutions for farmers – here’s all you need to know about Land Bank’s new services
