In a bid to save South Africa’s once highly productive and successful commercial farmers from large-scale bankruptcy as a result of the devastating drought, agricultural industry association Agri SA has appealed to banks, agricultural businesses, and the government for assistance.
“These farmers play a crucial role in producing food on a large scale for the commercial and export markets,” said Johan Pienaar, deputy executive of Agri SA. “South Africa generates R80 billion worth of exports from the agricultural sector per year. If these large-scale farmers were to go bankrupt it would have a negative impact on agricultural production and exports.”
According to Agri SA, farmers in parts of the Northern Cape, Free State and North West, Eastern Cape and Western Cape are in most need of financial assistance.
“They can no longer afford to buy animal feed and there is a lack of cash flow to keep farm operations going,” said Pienaar. “Boreholes on many farms are also starting to dry up and animals are dying.”
Agri SA highlighted that the shortage of winter fodder was a real problem.
“Our commercial farmers are the backbone of economic growth and losing them would exacerbate the conditions of poverty and unemployment,” said a spokesperson for Agri SA.
