The Department of Agriculture (DoA), alongside the Department of Land Reform and Rural Development (DLRRD), National Treasury and the Land Bank, have been directed by the responsible Ministers to resolve the temporary pause implemented by the Land Bank on new applications under the Blended Finance Scheme (BFS) and restore full funding operations.
The urgency to find a resolution was highlighted during a meeting between President Cyril Ramaphosa and Minister Willie Aucamp on 29 September 2026.
Minister Aucamp briefed the President about the engagements that have already taken place between the DoA and DLRRD to address the shortfall that has occurred as a result of high demand on the facility.
“DoA has already committed additional funding of R150 million; this is in addition to the R325 million grant allocation already transferred to the Land Bank for the 2026/27 financial year,” said the Ministry of Agriculture on Friday.
The Ministry added that discussions are ongoing with the Land Bank to ensure prudence in the management of BFS and avoid a re-occurrence of the situation where farmers are left in limbo.
Following several letters of concern that Aucamp has received about the issue of the funding and the negative impact it potentially has on farmers, the Minister reassured the affected parties that the DoA and other relevant government departments are doing everything to find a quick resolution.
Furthermore, Minister Aucamp has clarified that the Blended Finance Scheme has not been discontinued.
He stressed that funding gaps should not occur.
“Our focus is currently to ensure that farmers receive funding that will enable them to start planting. Land Bank has stated that in the interim the bank is open for 100% loan funding for the agriculture sector.
“The Department of Agriculture is engaging with DLRRD, National Treasury and the Land Bank to address this situation as an urgent matter,” Minister Aucamp said.
At the tabling of the DoA’s Budget Vote in May, the department said the BFS had supported over 14 000 jobs, including about 7 869 through the Industrial Development Corporation (IDC), and more than 6 480 via the Land Bank. -SAnews.gov.za
