Saturday, April 10, 2021

Government Farmer Funding Details


Farming is a unique occupation with its own challenges. The high cost of basic farming equipment, technology, and land and changing weather conditions are just a few challenges that can significantly impact a farm’s profitability.

That’s why the South African government provide farmers with many different grants, subsidies, and contributions. Below is the number of government funding opportunities for farmers. 
1. Department of Agriculture

Government identifies suitable land for farming and then advertises the fact that land is available on different media platforms.

People interested in farming then apply and their applications are assessed. Those who meet the criteria are shortlisted and interviewed.

If successful, their applications are submitted to the National Land Acquisition and Allocation Control Committee for final approval. Successful applicants sign lease agreements before they work the land and benefit from other support programmes.

Food Security  - Provides vegetable packs (5 different seeds, LAN, fertilizer), to individual households and production inputs to established groups 

CASP - Provides post-settlement support to the targeted land reform beneficiaries & to other producers who have acquired land through private means & are, for example, engaged in value-adding enterprises domestically or involved in export 

MAFISA - Short Term Agric Production Loans Purchase of production inputs To be repaid within 12 months except for perennial crops, which might take a maximum of 24 months

Equipment - Purchase of loose tools, small irrigation pumps & equipment, sprayers, e.t.c. To be repaid within 12 months. 

Livestock - Purchase of cattle, sheep, goats, pigs e.t.c. To be repaid within 60 months. 

Conditions - Max. of R100 000 per individual applicant Interest rate: 8 % per annum (compounded) Money paid to suppliers Savings mobilisation

For enquiries, farmers should contact the following people at the department’s provincial offices:

Free State: Percy Raseobi at 051 400 4277.

Northern Cape: Moeketsi Ntsane at 053 830 4001.

North West: Frank Lesenyeho at 018 388 7000.

Eastern Cape: Thabile Mehlomakhulu at 043 700 7000 .

KwaZulu-Natal: Sipho Dlamini at 033 355 4363.

Mpumalanga: Zithini Dlamini at 013 754 8000.

Limpopo: Nicholas Magada at 015 230 5000.

Gauteng: Tshifhiwa Tshikhudo at 012 337 3707.

Western Cape: Vuyani Nkasayiat 021 409 0300.

For more information, go to www.drdlr.gov.za or Government

2. IDC Agro-processing and Agriculture Strategic Business Unit

One of the objectives of the Agro-processing and Agriculture Strategic Business Unit (SBU) is to invest in the development of projects and businesses that either create new or expand local manufacturing capacity – which often results in the creation of new jobs as well as replacing imports, facilitating increased exports, and enhancing competitiveness. This is done by, amongst other things, reducing production costs by introducing new technologies, increasing efficiencies,  and promoting a value chain approach.

The aim is to develop a competitive industry in the food, beverage, forestry, and agro-derivative industries that utilise and develop local and regional resources to supply domestic demand and increase international trade participation.

This is achieved by expanding production capacity and promoting value-adding expansionary agro-processing activities in a manner that fosters economic inclusivity. The SBU also provides funding to agro-processors that want to increase their procurement levels from historically disadvantaged farmers or farming communities.

Through various funding and project development activities, we aim to have the following impact on the South African economy:

  • Promote, and expand industries, creating and preserving jobs and driving sustainable economic growth.
  • Enable local industries to ensure better utilisation of resources and infrastructure.
  • Improve operating margins and improve competitiveness.
  • Reduce imports and increase exports in the sector.
  • Achieve development goals of BEE and broad-based inclusivity, youth, and women ownership in businesses.

The Agro-Processing And Agriculture business unit supports a wide range of economically viable activities in agro-processing (food and non-food) sectors.

WHAT WE FUND

The IDC Agro-processing and Agriculture Strategic Business Unit (SBU) funds processing in the following sub-sectors of the agriculture value chain:

  • Horticulture including fruit, vegetables, nuts, tea and coffee
  • Field Crops Processing
  • Animal Protein, including red/white meat, aquaculture, poultry etc.
  • Forestry

The SBU can also consider backward integration into primary agriculture, where this forms part of the business and adds to the business’s competitiveness.

The SBU can also consider projects and transactions where land has been transferred back to communities and other broad-based groups to set up viable projects on such land.

CLICK HERE TO APPLY

3. Umsobomvu Youth Fund (UYF)

Grants offered to youth projects only (18-35yrs). Provides funds for production inputs only. Does not fund Poultry Production. 

Micro loans: R1000-100 000

Offered to black South African males (18-35 yrs) and women (of any age) who are, or plan to be very involved in business

National Office

Tel: 011 651 7000

Fax: 011 805 9709

Free State Office

Tel: 051 400 8301

Fax: 086 603 0500

www.youthportal.org.za

4. National Development Agency (NDA)

Funds existing and new projects.
2 types of funding
1. request for proposals for new projects advertised in newspapers.
2. programme formulation- for existing projects.

National Office

Tel: 011 718 5500

Fax: 011 403 2514

Free State Office

Tel: 051 430 2024

Fax: 051 403 2024

www.nda.org.za

5. Free State Development Corporation (FDC)

Provides loans to qualifying entrepreneurs for start-up capital, expansion capital and bridging finance.
Micro Loans Loans granted are a minimum of R50 000 & may not exceed R20 000. 
Interest charged will be Prime Bank Rate (PBR) less 3.5%. 
The repayment period may not exceed 36 months
Support on agro-processing only.
FDC provides equity in businesses that lack collateral but
have the potential for growth and profitability. 

Free State Office

Tel: 051 448 6772

www.fdc.co.za

6. Khula Enterprise Finance Ltd.

Land Reform Empowerment Facility (LREF) Khula LREF is a programme funded by the department of Land Affairs & the European Union, administered by Khula Enterprise Finance Ltd. 

LREF Mortgage Loan Facility 
This facility helps entrepreneurs to acquire ownership of agricultural land under the following conditions: Loan Size: limited to R600 000 per individual from previously disadvantaged background Loan Redemption Period: up to 20 years, depending on the repayment ability of the project. 

LREF Equity Share Scheme 
The scheme is where by both the land reform beneficiaries & private sector partners purchase equity in a land-based enterprise under the following conditions: Loan Size: limited to R400 000 per individual from a previously disadvantaged background. 
Loan Redemption Period: up to 20 years, depending on the repayment ability of the project 

Khula Indemnity Scheme
Provides financial assistance to people who wish to start or expand small to medium sized businesses but do not have security to support facilities provided by financial intermediaries. 

Khula-Start Programme 
Gives loans to women groups in rural areas. Individuals select themselves into groups of 3-10 members & need to meet the criteria set for group participation. Loans are disbursed on an incremental basis from R300- R3500 per member. The group decides based on activity of individual businesses how much each member gets & will subsequently stand surety for the full amount owed by the group as a whole. 

Free State Office
Tel: 051 430 2778/3203
Fax: 051 430 0949
Toll Free: 0800118815

7. Department of Trade and Industry

Individual Credit Guarantee Scheme. 
Enables the entrepreneur to access funding from a participating bank or other financial institutions. The scheme enables the entrepreneur to access funding for purposes of establishing, expanding, or purchasing a business. Facilities secured under this scheme include; term loans, bank overdraft, revolving credit, installment sale, bank guarantees as well as construction performance guarantee. 

Emerging Entrepreneur Scheme-Credit Guarantee 
Provides up to R100 000 with the fee payable at 4% p.a in advance. The duration is 24 months initially but can be extended three times for periods of 12 months each time. The condition is mentorship of the loan.

National Office
Tel: 086 184 3384
Fax: 086 184 3888
www.thedti.gov.za

8. SEDA

Provides information to small enterprises and prospective entrepreneurs that will help and encourage them to start and build sustainable businesses.

National Office
Tel: 012 441 1000
 086 010 3703
Free State Office
Tel: 051 411 38201
 051 444 4267
Fax: 051 444 4235

10. National Empowerment Fund

The fund is designed to promote the creation of new businesses & the provision of expansion capital to early stage businesses. It aims to cultivate the culture of entrepreneurship by offering debt, quasi-equity & equity finance up to R20 million comprising: 

- start-up finance for new businesses

 - expansion capital for existing small businesses 

- financing of preferential procurement contracts 

- financing of rural & community development projects 

- financing of franchised projects

National Office Tel: 011 305 8000 Fax: 011 305 8001 www.nefcorp.co.za

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Government Farmer Funding Details

Farming is a unique occupation with its own challenges. The high cost of basic farming equipment, technology, and land and changing weather ...