The Land and Agricultural Development Bank of South Africa (Land Bank) has temporarily paused new applications under its Blended Finance Scheme (BFS) after demand for grant-supported agricultural finance exceeded the funding available for the 2026/27 financial year.
The pause applies for the remainder of FY2026/27, or until sufficient additional grant funding becomes available. Land Bank said the decision will allow it to manage the remaining grant allocation while continuing to honour contractual commitments already concluded.
Since the BFS launched in FY2022/23, approximately 540 clients or beneficiaries had been supported by the end of FY2025/26.
Grant funding falls short
The BFS combines a repayable Land Bank loan with a non-repayable grant contribution funded by the Department of Agriculture.
Under the current funding arrangement, the department provides Land Bank with an annual grant allocation of R325m for the scheme.
The BFS is primarily aimed at improving access to finance for qualifying historically disadvantaged producers and supporting their participation in the agricultural economy.
Land Bank said demand for grant-supported financing has significantly exceeded the annual grant allocation available to the scheme.
The remaining FY2026/27 grant funding will therefore be prioritised towards BFS facilities for which contractual commitments have already been concluded.
The bank said the temporary pause is intended to ensure it does not make further grant-supported commitments without sufficient certainty about the availability of funding.
Scheme has not been discontinued
Land Bank said the BFS has not been discontinued and that the pause applies specifically to new applications.
Under its current funding arrangement with the Department of Agriculture, a further annual grant allocation of R325m is expected for FY2027/28.
Subject to that allocation and the bank's assessment of available grant capacity at the time, Land Bank expects to reopen the scheme for new applications.
The bank is also engaging with the Department of Agriculture, National Treasury and other potential funding partners to explore additional and alternative sources of grant and concessional funding.
Existing applications reviewed
BFS facilities for which contractual commitments have already been concluded will continue to be managed in terms of the applicable funding agreements.
Applications already in the bank's origination and credit pipeline where grant funding has not been contractually committed will be reviewed individually.
Where appropriate, Land Bank will assess whether the underlying financing requirement can be supported through a 100% repayable Land Bank loan without the BFS grant component.
Land Bank continues lending
The temporary pause does not affect Land Bank's broader agricultural lending activities.
The bank continues to provide 100% loan financing across its agricultural financing solutions, including mortgage loan facilities for the acquisition of agricultural land and property, revolving credit facilities for working capital and production requirements, instalment finance for agricultural machinery and equipment, term loans and structured financing solutions for qualifying farmers and agribusinesses.
Farmers and agribusinesses requiring funding are encouraged to continue approaching Land Bank, with applications assessed through its normal credit assessment and approval processes.
Acting chief executive officer, Jabu Mphambo said: “The strong demand for the Blended Finance Scheme demonstrates the important role that affordable and innovative financing solutions can play in broadening participation in South African agriculture. The temporary pause in new applications is a responsible measure to ensure that further grant-supported commitments are aligned with the grant resources available to the scheme.
“The BFS has not been discontinued, and Land Bank remains fully open for business for 100% Loans. We will continue working with Government and other partners to mobilise additional funding while supporting qualifying farmers and agribusinesses through the Bank's broader range of agricultural financing solutions.”
Land Bank said it will communicate when applications under the Blended Finance Scheme can resume and will keep clients, prospective applicants and other stakeholders informed of material developments.
