According to a media statement released by the institution, some of the recent commentary relates to loans historically originated through agricultural businesses and cooperatives under service-level arrangements, which were subsequently transferred to the Bank.
Certain borrowers have challenged Land Bank's legal standing to enforce these debts, including the validity and enforceability of the underlying sale and cession arrangements. The Bank noted that these issues remain the subject of ongoing litigation and are appropriately determined through the court system.
Land Bank clarified that no court has, to date, issued a final judgment declaring the relevant sale and cession agreements invalid or unenforceable. The institution stated that certain adverse court outcomes referenced publicly related strictly to procedural or evidentiary matters, and should not be interpreted as blanket findings that underlying debts do not exist or that borrowers are released from their obligations.
Having also obtained favourable judicial outcomes in related matters, Land Bank added that because several cases remain before the courts, the litigation matters are sub judice, and it will refrain from commenting on the detailed merits of individual cases.
Addressing its debt collection stance, Land Bank stated that it does not regard liquidation or the disposal of productive agricultural assets as its preferred approach to resolving borrower distress.
Where circumstances permit, the Bank seeks to engage clients to identify sustainable solutions, including debt restructuring, voluntary asset disposal, and formal repayment arrangements. Formal legal recovery processes are pursued only when reasonable alternatives have been exhausted or to protect legitimate public interest.
While noting that any agreed solution must be commercially sustainable, Land Bank stated it remains open to mediation and alternative dispute-resolution mechanisms. However, it confirmed that no formal proposals regarding alternative dispute resolution have been presented to the Bank for consideration to date.
The Bank's response follows a parliamentary petition submitted to the National Council of Provinces (NCOP) on 23 July 2026, as reported by Daily Investor, by Freedom Front Plus MP Kobus van den Berg, member of the Select Committee on Agriculture, Land Reform and Mineral Resources.
According to the official statement released by the VF Plus on behalf of roughly 150 commercial farmers and farming entities facing liquidation and asset attachments, affected borrowers contend that Land Bank lacks legal standing (locus standi). The party noted that cessions of debt from cooperatives such as Suidwes Landbou, GWK, and Unigro are invalid or unenforceable due to a lack of direct loan agreements.
Regarding legislative scrutiny, Land Bank acknowledged the petition submitted to the NCOP concerning these matters. The Bank confirmed it respects Parliament’s constitutional oversight role and will cooperate fully should it be called upon to participate in any parliamentary proceedings.
Land Bank reaffirmed that its core mandate is to support the development, transformation, and long-term sustainability of South African agriculture, stating it has no interest in unnecessarily displacing viable farmers or undermining productive agricultural enterprises.
