Grain SA is set to make R5 million available to help developing farmers with production loans. Jaco Minnaar, chairperson of Grain SA, made this announcement at the Grain SA congress recently held at NAMPO Park near Bothaville. The money is to be used as collateral to secure production loans for developing farmers rather than as direct finance.
According to Jannie de Villiers, CEO of Grain SA, the money will be taken from Grain SA funds specifically earmarked for farmer development. Grain SA will invest the money with Standard Bank, and with some funding from Standard Bank, it will act as security for members who apply for loans. Farmers will also be asked to make a personal contribution.
De Villiers says all the necessary procedures and governance will be in place to meet South African legal and regulatory requirements. According to Grain SA’s CEO this investment would create a type of safety net that could unlock as much as R40 million in financing by banks or input financiers for developing farmers.
Applicants need to be members of Grain SA, or part of its development programme, and will undergo a strict selection process. – Elmarie Helberg, AgriOrbit