The Department of Agriculture (DoA), Department of Land Reform and Rural Development (DLRRD), National Treasury and the Land Bank have been directed to urgently resolve the temporary pause on new applications under the Land Bank’s Blended Finance Scheme (BFS).
By Lebogang Mashala, editor at African Farming
This is according to Agriculture Minister Willie Aucamp, who confirmed the departments and Land Bank were working to restore full funding operations as quickly as possible and prevent a recurrence of farmers being left in limbo.
Aucamp said the urgency of the situation was highlighted during his meeting with President Cyril Ramaphosa on 29 September 2026, where he briefed the President on efforts to address the funding shortfall caused by high demand for the scheme.
“The DoA has already committed additional funding of R150 million. This is in addition to the R325 million grant allocation already transferred to the Land Bank for the 2026/27 financial year,” Aucamp said.
He said discussions with Land Bank were also focused on ensuring prudent management of the Blended Finance Scheme and avoiding future funding gaps.
Also read: ‘Our farmers need you now’ – open letter to President Ramaphosa, Minister Godongwana and Minister Aucamp
The minister said he had received several letters expressing concern about the impact of the funding situation on farmers and sought to reassure affected applicants that government was working to find a swift resolution.
Aucamp also confirmed the Blended Finance Scheme had not been discontinued.
“Our focus is currently to ensure farmers receive funding that will enable them to start planting. Land Bank has stated that, in the interim, the bank is open for 100% loan funding for the agriculture sector,” he said.
“The Department of Agriculture is actively engaged with DLRRD, National Treasury and the Land Bank to address this situation as an urgent matter,” Aucamp added.
Also read: Cabinet should bail out the Blended Finance Scheme
AFASA calls for lasting solution
Meanwhile, African Farmers’ Association of South Africa (AFASA) president A.J. Mthembu said the organisation had held urgent engagements with government and other stakeholders over the funding crisis.
Mthembu confirmed formal notices of concern had been submitted to the Minister of Agriculture, the Director-General, Land Bank, the Presidential envoy on agriculture and the Portfolio Committee on Agriculture.
He said commitments had been made to intervene and secure relief measures, but stressed that accountability and sustainable solutions were needed to prevent the depletion of the Blended Finance Scheme from recurring.
“Farmers cannot be made to suffer because of administrative failures. We have acted decisively to secure interventions, but we will continue to hold institutions accountable until lasting solutions are in place,” Mthembu said.
AFASA welcomed the swift engagement and intervention promised by the DoA and DLRRD, but said it would continue to demand accountability from government, Land Bank and other statutory agencies.
“We want to ensure black farmers are adequately supported and the vision of inclusive growth is fully realised,” Mthembu concluded.
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