Access to finance is an important part of building a successful agricultural business, but funding alone does not guarantee that a farmer will succeed. What happens before and after the money reaches the farm can be just as important.
That was a key theme during a discussion on agricultural finance at NAMPO Cape 2026 in Bredasdorp.
The panel looked beyond the question of whether farmers can qualify for funding and considered what needs to be in place to give them a realistic opportunity to build sustainable and profitable businesses once financing has been approved.
For developing and emerging farmers, this can include access to markets, technical expertise, mentorship, infrastructure and business support. These factors can help farmers manage the operational and financial risks associated with establishing and expanding an agricultural enterprise.
Finance is only one part of the equation
One of the issues raised during the discussion was the importance of support networks.
Established commercial farmers have often developed their businesses within broader agricultural ecosystems that include suppliers, advisers, financial institutions, industry organisations, experienced peers and established market relationships.
New and emerging farmers may enter the sector without the same networks and can consequently face risks and challenges that extend well beyond securing capital.
Simply putting a farmer on land, providing funding and expecting the business to succeed is therefore not enough, the panel heard.
Finance needs to be accompanied by the knowledge, infrastructure, market connections and practical support required to turn capital into a productive and sustainable farming operation.
Farming needs an ecosystem
The discussion also highlighted the importance of the broader conditions in which farmers operate.
Water security was identified as a fundamental requirement for agricultural production, while reliable roads are needed to move inputs and produce efficiently between farms, markets and processing facilities.
Reliable energy, access to markets and the ability to comply with agricultural regulations were also raised as important considerations.
Animal disease presents another significant risk. Disease outbreaks can affect production and farm income while also having wider implications for food security and South Africa’s ability to access export markets.
These challenges are interconnected.
A farmer may have sufficient capital to invest in production, but that investment can still be undermined if water supplies are unreliable, roads are inadequate, electricity is unavailable, market access is limited or the farmer cannot access the technical expertise needed to manage the business.
This means agricultural finance cannot be considered in isolation from the wider farming environment.
Partnerships could help close the gap
Closer collaboration between government, financial institutions, agricultural organisations and established commercial farmers was repeatedly raised during the discussion as one potential way of strengthening support for emerging producers.
The Western Cape’s approach to farmer support was discussed as one example, with partnerships between government and the wider agricultural sector forming part of its model.
The role of Land Bank was also discussed, particularly the potential for partnerships with government departments to extend financing and support to a broader group of farmers, including emerging producers.
Such partnerships could help address some of the gaps that cannot be solved through conventional lending alone.
For example, a financing programme could potentially be strengthened by combining capital with technical assistance, mentorship, market linkages and ongoing business support. This could give farmers greater access to the resources they need to manage their businesses beyond the initial funding stage.
From funding access to business sustainability
The broader challenge is therefore not simply finding more money for agriculture. It is developing financing and support models around the realities farmers face on the ground.
For a farmer, accessing capital may be the beginning of a business journey rather than the end goal. The ability to use that capital effectively depends on factors ranging from production conditions and infrastructure to skills, markets and risk management.
The discussion at NAMPO Cape highlighted the need to look at agricultural finance as part of a much wider support system.
The question should not stop at what it takes to qualify for finance, but should instead ask:
What does it take to enable the farmer to succeed?
