Question NW39 to the Minister of Agriculture

2021 -2022

2022 -2023

2023 -2024

Blended Finance Scheme (BFS)

Since its launch in March 2021, 183 producers has been supported to the total value of R3,107 billion of which R1, 204 billion was the grant and will create a total of 3 418 jobs at full operation. The average production capacity of supported poultry producers is 333 000 chickens per cycle. Commodities supported include livestock, poultry, fruits, vegetables, and grains.

8 black commercial producers were supported through IDC to a total value of R385 million of which R128,3 million is the grant creating 314 jobs. Five of the approved transactions are poultry farm expansions with an average cycle of 420 000 chickens per cycle.

19 black commercial producers were supported through IDC to a total value of R986 million of which R352 million is the grant creating 655 jobs. Ten of the approved transactions are poultry farm expansions with an average cycle of 333 000 chickens per cycle. Land Bank approved 31 smallholder producers to a total value of R254,3 million of which R133 million is the grant creating 599 jobs. 12 813 Ha will be under the production of grains, fodder, fruits, nuts, vegetables, sugarcane, and red meat.

As @31 December 2023 IDC approved 29 transactions to the value R1.915 billion, of which R587,5 million is the grant creating 1445 jobs. Fourteen of the approved transactions are poultry farm expansions with an average cycle of 277 000 chickens per cycle; 220 ha of vegetables in seven farms, average piggery supported is 305 sows; and 160 ha fruits. Land Bank approved 183 producers to the total value of R1, 192 billion of which R617 million is the grant creating 1973 jobs.

Comprehensive Agricultural Support Programme (CASP)

For the period 2019/20 – 2023/24, CASP has spent R6, 661 billion in 2125 projects and benefitted 59 482 smallholder producers and creating 21 762 jobs. This programme develops these farmers to be self-reliant small scale commercial producers who are exited to blended finance scheme. Many of the beneficiaries of BFS were developed through CASP.

R1, 128 billion was spent in 488 projects benefiting 6 407 producers and creating 5 564 jobs. Commodities supported include vegetables, red meat, fruits, poultry, piggery, and grains.

R1, 478 billion was spent in 457 projects benefiting 19 889 producers and creating 4 624 jobs. Commodities supported include vegetables, red meat, fruits, poultry, piggery, wool, and grains.

R1, 477 billion was spent in 396 projects supporting 6 942 producers and creating 1694 jobs. Commodities supported include vegetables, red meat, fruits, poultry, piggery, wool, and grains.

Agro-Energy Fund (AEF)

Increase access to affordable finance by producers and agro processors in the agriculture sector irrespective of race by providing grants to lower their gearing.

The AEF will be used for the acquisition of alternative energy assets to generate energy for their farming or processing enterprises.

The focus of the AEF is on energy intensive agricultural activities such as irrigation, intensive agricultural production systems, and on-farm cold chain related activities.

The fund is targeting alternative energy sources like solar, biogas / Anaerobic digesters and Biomass (agricultural crops), the list is not exhaustive.

N/A

N/A

Since its launch on the 29^th of August 2023, a total of R24.425 million has been approved as of 31 May 2024 of which R7, 989 million is the grant and R16.436 million is the loan supporting 9 transactions. The support included solar infrastructure on irrigated farms.

Micro-Agricultural Financial Institution of South Africa (MAFISA).

This is a financial scheme that was introduced in 2004 to address the financial services needs of smallholder producers in the sector. The implementation of MAFISA is through a network of financial intermediaries accredited by the department to further disburse the funds to the potential smallholder producers. The fund is administered and managed by the Land Bank. The production loan is up to a minimum of R50 000 without collateral and a maximum loan of R500 000 with collateral, at an interest rate of 7% per annum

MAFISA has contributed to the entrepreneurial and enterprise development, job creation and economic growth of smallholder producers.

R7 244 889.01

with production loan support to 190 beneficiaries

R11 610 737.21

with production loan support to 247 beneficiaries

R6 908 010.62

With production loan support to 60 beneficiaries

Farmer Production Support Units (FPSUs)

The FPSU is a rural smallholder producer outreach and capacity building unit supported by the department through any or some of the following:

(1) Governance structure,

(2) production inputs,

(3) Mechanisation support;

(4) Human resources support; and

(5) Producer registration.

The provisioning of production inputs and mechanization assisted Black Farmers to be in production and / or increased their production yields.

Black Farmers have access to formal and informal markets thus generating own income.

Black farmers have FPSUs as local holding facilities for their mechanization services and production input storage for further distribution within.

Jobs are created through self-employment by Black Farmers with additional temporary jobs during planting and harvesting periods.

Jobs created

2021/2022:

2438 Permanent

2285 Temporary

Total : 4723

2022/2023:

2509 Permanent

3998 Temporary

Total: 6507

2023/2024:

2603 Permanent

3198 Temporary

Total: 5801

The Department provides training to agricultural cooperatives to assist them to improve operational efficiencies and enhance competitiveness using the Farmtogether cooperative training programme. The programme addresses a wide range of skills that include among others governance in cooperatives, financial management, record keeping, markets and contract negotiations, agribusiness management, conflict resolution mechanisms, leadership skills, and compliance

(Training)

2021/2022: 91

2022/2023:100

2023/2024:108

Eastern Cape

R31 498 995,17

R22 740 411,84

R50 886 326.87

Free State

R14 510 209,05

R5 566 661,76

R14 126 706.71

Gauteng

R26 476 308,49

R32 286 113,69

R25 622 660.98

KwaZulu-Natal

R82 574 395,26

R34 186 478,74

R58 014 826.66

Limpopo

R41 455 451,80

R20 361 522,00

R27 867 565.53

Mpumalanga

R47 711 159,06

R69 407 740,38

R25 100 388.52

North West

R16 710 972,47

R17 055 806,16

R2 686 582.77

Northern Cape

R22 992 134,92

R20 459 380 .46

R26 024 019.95

Western Cape

R3 457 724,52

R5 902 333,00

R15 285 025.30

AgriBEE Fund

For the period in question 6 Agribusinesses were supported to commercialise with value adding and processing infrastructure as well as equity acquisition to the value of R93.6 million. This has assisted in terms of improving market access and contributed to sector transformation. In addition, an estimated 67 jobs were created.

R0

R 31 661 201,91

R 61 903 280,33