FAST FACTS
- Interest on credit cards is generally very expensive, and farmers are advised against using them a means to fund production on farms.
- When giving out a production loan, banks normally require a farmer to take out insurance to cover production risks, as the loan is usually offset against the harvest.
- A farmer’s credit rating, any defaults on loans, the financial history of the business, collateral, and the likelihood of the investment paying off are all taken into consideration when negotiating the terms of a loan.
Where the Land Bank used to account for about 28% of South Africa’s agricultural debt, its financial woes have prevented it from accepting new clients and left it unable to meet 50% of its existing clients’ financial needs. This was according to Ayanda Kanana, CEO of the Land Bank, who reported to the Standing Committee on Appropriation in August.
He said the bank had disbursed only R5 billion to support the sector in 2021, in comparison with R21 billion in 2020, R29 billion in 2019, R32 billion in 2018 and R38 billion in 2017.
The situation was also compromising the bank’s transformation agenda, with its Development and Transformation division loan book shrinking. In addition, it affected the loans from agribusinesses that were secondary lenders of Land Bank funds.
Kanana admitted that the status quo was unlikely to improve in the near future, as the bank was heading for a third consecutive year of loss, estimated at R1,06 billion for the 2021 financial year, in comparison with R1,28 billion in 2020 and R2,27 billion in 2019.
Diese Geschichte stammt aus der October 29, 2021-Ausgabe von Farmer's Weekly.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent ? Anmelden
Diese Geschichte stammt aus der October 29, 2021-Ausgabe von Farmer's Weekly.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent? Anmelden
Uncertainty over Trump's stance on AGOA
It is of vital importance that that the African Growth and Opportunity Act (AGOA) be upheld following the recent US presidential election, in which Donald Trump emerged as the winner.
Plum pollen study reveals varietal differences in pollination effectiveness
A new study undertaken near George, Western Cape, explored pollination in plum varieties, showing key differences in pollen quality. Octavia Avesca Spandiel reports on the research findings.
Study: small cuts to beef production could eliminate years of emissions
In a paper published in early November, scientists reveal that pasturelands, in particular those that were once forests, hold great potential for mitigating the effects of climate change.
Harnessing wind for cleaner energy
At the Windaba Conference and Exhibition, held in October in Cape Town, Western Cape, Niveshen Govender, CEO of the South African Wind Energy Association, spoke to Glenneis Kriel about the state of wind energy in the country and the opportunities that farmers can exploit.
The Cape Grace: a Cape Town icon is reborn, and her new custodians shine
Brian Berkman has had the exceedingly good fortune of spending many nights at the Cape Grace Hotel over the years. He revisits it to find it as impressive as ever.
Cutting-edge tech aiding the agri sector
Toyota Material Handling's innovations conserve resources and reduce the environmental footprint of farming operations.
Use the correct growing medium for safe seedling production
Instead of buying expensive growing mediums for seedlings, farmers can make their own mixtures from local resources, such as manure, which are economical and produce excellent results
Optimising cherry production and quality
Growing cherries in a suboptimal climate requires manipulating trees and temperatures. But with a considerable market advantage, it is worth the effort. Lindi Botha visited ZZ2's Toscana farm, which for four weeks of the year takes prime position in the cherry market.
Biosecurity & nutrition: the foundation of pig farming success
JD Mostert, a consulting swine nutritionist at CS Vet, and Dr Stefan Steyn, a veterinarian at Afrivet, shared their expertise with Sinenhlanhla Mncwango, delving into why biosecurity and nutrition are critical pillars in establishing and maintaining a productive pig farm geared for long-term success.
The business of pig farming: practical steps for success
Running a pork farm requires knowledge and expertise. Mosele Lepheane, director of a small piggery in the Free State, spoke to Sinenhlanhla Mncwango about the structured approach needed to succeed, from drafting a business plan and managing cash flow to sourcing equipment and expanding market access.
