South Africa Targets New Generation of Commercial Farmers to Drive Agricultural Growth

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South Africa is stepping up efforts to expand its commercial farming sector, improve access to agricultural finance and bring more black farmers into the mainstream economy as the country seeks to strengthen food security, create jobs and grow exports.
In his weekly letter to the nation published on 12 October 2026, President Cyril Ramaphosa highlighted the potential of agriculture to drive rural development and economic growth, pointing to the success of emerging farmers who have received financial support to expand their businesses.
Ramaphosa recently visited Redlands Farm, a commercial dairy operation in Stutterheim in the Eastern Cape, owned and managed by young black farmers. The business has expanded with support from the Land Bank through its Blended Finance Scheme, which combines government grant funding with loans.
The president said many emerging farmers remained trapped at subsistence level because they lacked access to the capital required to purchase farming inputs, develop infrastructure and acquire additional land. He said successful partnerships between government, financial institutions and the private sector could help more farmers establish commercially viable businesses.
South Africa’s agricultural sector plays a significant role in employment and economic activity. According to figures cited by Ramaphosa, farming employs approximately 944,000 people, with another 200,000 working across the broader agricultural value chain.
The country has also strengthened its position in international markets. Agricultural exports reached a record R270 billion in 2025, making South Africa the world’s 32nd-largest agricultural exporter. Key export products include citrus, table grapes, maize, beef, wine, sugar and wool, with the African continent accounting for nearly half of agricultural exports.
Despite this growth, Ramaphosa said ownership and participation in commercial agriculture remained unequal. Black farmers account for approximately 10% of commercial farming output, highlighting the need to broaden participation and develop a larger pool of productive commercial farmers.
He warned that relying on a relatively small segment of the population to meet the country’s food requirements was unsustainable as population growth increased demand for agricultural products.
A central part of the government’s strategy is improving access to land. Through the Proactive Land Acquisition Strategy, approximately 2.5 million hectares of state-owned land are being released to black farmers, with title deeds intended to provide greater security and a foundation for developing farming enterprises.
However, Ramaphosa stressed that access to land must be accompanied by practical farming knowledge, training, mentorship, technology and affordable finance. Developing commercially successful farmers requires experience in crop production, weather management, animal health and other essential aspects of agricultural operations.
He welcomed the work of industry organisations, including the Citrus Growers’ Association, Grain South Africa, the National Wool Growers’ Association, Potatoes South Africa, Red Meat Industry Services, the Milk Producers’ Organisation and Fruit South Africa, in supporting skills development and building a more inclusive agricultural economy.
Access to finance remains another priority. The Land Bank and the Department of Agriculture established the Blended Finance Scheme to help emerging farmers secure the capital needed to expand production. Commercial banks have also joined the programme, and the government is encouraging more lenders and agribusinesses to develop funding instruments tailored to agricultural businesses.
Alongside domestic transformation, the government is pursuing opportunities to diversify export markets and strengthen South Africa’s international competitiveness. Engagement with farmers and agribusinesses also includes developments in agricultural biotechnology and new breeding techniques aimed at improving productivity and efficiency.
Ramaphosa said stronger cooperation between government, farmers, businesses, lenders, traditional leaders and communities would be essential to unlocking the sector’s potential.
Expanding commercial farming, improving access to finance and building agricultural skills could help South Africa increase production, strengthen rural economies and create opportunities for a new generation of farmers. The broader objective is to establish a more inclusive and productive agricultural sector capable of supplying domestic food markets while increasing exports to international destinations.











