High demand for the Land Bank's mixed financing scheme has forced the bank to temporarily halt the acceptance of new applications because the grant funding available for the 2026/27 financial year has been completely exhausted.
The Land and Agricultural Development Bank of South Africa has temporarily stopped registering new applications under its mixed financing scheme for the remainder of the 2026/27 financial year, unless additional grant funding becomes available sooner.
This scheme combines a repayable loan from the Land Bank with a non-repayable grant provided by the Department of Agriculture, thereby reducing the overall financial burden for eligible farmers.
The bank stated that the demand for this scheme significantly exceeded the annual grant quota. Since the launch of the mixed financing scheme in the 2022/23 financial year, approximately 540 clients and beneficiaries have received support by the end of 2025/26.
Currently, the Department of Agriculture allocates an annual grant of 325 million rand to the Land Bank for this scheme. The main objective of the mixed financing scheme is to improve access to affordable finance for qualified historically disadvantaged producers and support their more active participation in the agricultural economy.
In a statement released today, the Land Bank clarified that the remaining grant funding for 2026/27 will be directed towards projects under the mixed financing scheme for which contractual obligations have already been concluded.
The temporary suspension is intended to ensure responsible management of existing grant funds and to prevent entering into further grant-supported commitments without certainty of the availability of necessary funds.
The bank emphasized that the mixed financing scheme has not been discontinued. According to the current funding agreement with the Department of Agriculture, another annual grant allocation of 325 million rand is expected for the 2027/28 financial year. Subject to the availability of these funds and the bank's assessment of grant capacity, the Land Bank plans to resume accepting new applications.
The Land Bank is also in discussions with the Department of Agriculture, the National Treasury, and other potential financing partners regarding additional and alternative sources of grant and concessional funding.
Projects under the mixed financing scheme for which contractual agreements have already been reached will continue to be managed in accordance with the applicable financing agreements.
Applications currently under processing and credit scoring at the bank, but for which grant funding has not yet been contractually secured, will be reviewed on a case-by-case basis. In suitable cases, the Land Bank may consider supporting the basic financing need solely through a 100% repayable loan from the Land Bank, excluding the grant component of the mixed financing scheme.
The suspension does not affect the bank's broader activities in agricultural lending. The bank states that it continues to operate and offers 100% financing through various agricultural finance products, including mortgages for acquiring agricultural land and property, revolving lines of credit for working capital and production needs, installment payments for machinery and equipment, short-term loans, and structured financial solutions.
Therefore, farmers and agribusinesses needing financing are advised to continue approaching the bank. Applications will be assessed through the bank's standard credit approval processes.
The Acting Chief Executive Officer, Thabo Mphambo, noted that the high demand demonstrates the role that accessible and innovative financing can play in expanding participation in South Africa's agriculture. Mphambo stated that 'the temporary suspension of new application intake is a responsive measure to ensure alignment of future grant-supported commitments with the available grant resources of the scheme.' He reiterated that the mixed financing scheme has not been terminated, and the Land Bank continues to operate through its 100% financing offerings. He added: 'We will continue to work with the government and other partners to mobilize additional funding while supporting qualified farmers and agribusinesses through a wider range of the Bank's agricultural financial solutions.'
The Land Bank announced that it will inform clients, prospective applicants, and other interested parties about significant changes and will announce the resumption of applications for the mixed financing scheme.