A successful farmer is an entrepreneur and a farm is a business like any other business and needs to be managed as such in order to be successful. And just as any business working toward a mission and profits, what will always be a factor, is finance, how to obtain and maintain it.
The Land Bank of South Africa is a specialist agricultural bank, wholly owned by the Government, and is a key financial player in agriculture.
In regards to loans for farmers for working capital, agricultural projects, buying land, equipment purchases, and asset improvement and production credit.
And Land Banks wide range of loans include.
Special Mortgage Loan
It’s aimed at South Africans who are first-time buyers of agricultural land due to being previously denied the rights to buy land.
A fixed instalment loans for capital expenditure. Used for the purchase of land, the purchase and installation of machinery and equipment, fixed asset improvements, water project schemes and other agriculture-related capital expenditure.
Tailored to meet important financing needs in the agricultural cycle including: The provision of advances against crop intakes, production requirements, production credit and other related services, which includes the handling, manufacturing, packing, processing, storage, transport and/or marketing of agricultural products.
For establishing perennial crops, such as sugar cane plantations, citrus and deciduous fruit orchards, timber plantations and vineyards for table and wine grapes.
Is a medium term loan offering its clients an opportunity to purchase livestock using the latest available animal identification technology. This product is aimed at clients who’ve established herds of stud animals, dairy cows, or are involved in beef production, and wish to expand their herds, without offering land for security purposes.
As the animals bought and the client’s existing animals form the most important security. Belonging to the Bank until the loan has been repaid. The loan can also be used to finance high-value game and horses.
Is a medium-term loan where the goods that you buy act as the main security for the loan belonging to the Bank until the loan is paid in full. It enables all farmers, especially those with limited assets to grow their businesses. Typically this finance is used for farming equipment, implements, vehicles and Livestock
This finance package is available for periods between 3 and 10 years, depending on the expected length of life of the asset.