Agricultural development finance institution the Land Bank's Blended Financial Scheme (BFS), with pre- and post-finance support services, aims to commercialise development farmers and to ensure the meaningful participation of black producers and majority black-owned enterprises in owning and controlling agricultural value chains in South Africa.

The BFS combines grants and loans to provide affordable finance to support producers engaged in the agricultural value chain and aggregation activities. It aims to assist farming projects achieve sustainability and growth, with priority given to projects with high development impact.

Created in partnership with the Department of Agriculture (DoA), the scheme aims to address some of the challenges facing aspiring farmers, says Land Bank chief strategy officer Sydney Soundy.

A lack of land ownership, high input costs, limited access to finance, a lack of market access, low returns, high cost of mechanisation and limited farming knowledge and technical skills are barriers that hinder youth participation in agricultural activities.

Improved availability and access to land, financial support and the dissemination of pertinent information are among the key interventions that can assist youth entry in the agricultural sector, he notes.

“Agriculture continues to be a significant contributor in South Africa’s economy, with agricultural exports growing by 10% year-on-year in the first quarter of this year, to reach $3.36-billion. This growth was driven by increased exports of grapes, maize, apples and wine,” says Soundy.

Additionally, agriculture contributed significantly to South Africa’s 0.1% GDP growth in the first quarter, helping the country avoid a recession. The sector’s resilience underscores its importance in national economic stability, he adds.

According to the Western Cape DoA, in the first quarter, South Africa's agricultural sector saw a notable increase in employment, with a rise of 27%, or 51 282 jobs, quarter-on-quarter and 13%, or 28 994 jobs, year-on-year.

This growth was primarily driven by a 34% increase in crop farming employment and a smaller 1% increase in animal farming.

“The BFS will unlock the potential of young agripreneurs, and catalyse a new era of agriculture that is driven by knowledge, innovation and sustainability.

“This new generation of farmers will shape the future of food production, export markets and rural development. The commitment of these young farmers ensures that agriculture remains a cornerstone of economic growth,” he says.

Additionally, initiatives such as the Agricultural Youth Fund are supporting youth-led farming businesses, and organisations like Youth in Agriculture and Rural Development are working to promote youth participation and provide a platform for networking and support, he says.

With the average age of farmers in South Africa being around 57 years, there is a definite need for youth participation in the sector to ensure its future sustainability, he adds.