The Land and Agricultural Development Bank of South Africa is an agricultural development financial institution. It is a state-owned agricultural bank with the objective of serving emerging and commercial farmers by offering custom-made financial services within their reach.  Since its inception in 1912, the bank has been the leading financier in the South African agricultural sector and it strives to be a world-class provider of agricultural financial services on a wholesale, retail, project and micro-finance basis. Land Bank supports economic growth through the provision of agricultural financial services by means of operating in the money market. Land Bank’s broader objective is to contribute to rural development, stability, social upliftment and job creation in South Africa. The bank offers its products and services to mega/corporate farmers, medium to large and smallholder farmers in all nine provinces of South Africa.

Financial products and services 

Tailor-made solutions are available to clients, which entails the following:

Mortgage loan

  • The long-term loan is designed to finance capital expenditure related to agriculture; this is for the purchase and improvement of fixed agricultural property.
  • Mortgage loans can also be used to consolidate debts related to the purchase of property or other purposes related to agricultural capital expenditure. 
  • The term is dependent on the purpose of the loan and offered for up to 25 years. 
  • The repayment of the loan is linked to the cash flow cycle of the business.
  • Security for these loans can be in the form of a bond over fixed property or through additional security arranged in agreement with the bank.

Medium-term loans

  • This loan was designed for medium-term agricultural finance requirements. Various forms of finance include:
    • Purchase and installation of equipment related to agriculture.
    • Purchase of moveable assets.
    • Purchase of livestock.
    • Establishment of perennial crops.
    • Infrastructural improvements.
  • The term depends on the purpose of the loan and it is up to 15 years.
  • The repayment of the loan is linked to the cash flow cycle of the business.
  • Security for these loans can be in the form of a bond over fixed property or through additional security arranged in agreement with the bank.

Instalment loan finance (Assets finance)

These facilities are designed for farmers that require financing for the purchase of tractors, vehicles, agricultural equipment not covered under medium-term loans and any agricultural justifiable moveable assets. 

  • The term is up to 12 years.
  • Security requirements; titleholder, specific and notarial bonds over the asset or through additional security arranged in agreement with the bank. 
  • Instalments are linked to the cash flow of the business and can be monthly, quarterly, half-yearly or annually.

Short-term loans

Short-term loans are tailored to meet important financing needs faced by commercial and emerging farmers during the vital agricultural production cycle. These include the provision of advances of crop intake, production requirements, production credit and other related services that include the handling, manufacturing, packing, processing, storage, transport and marketing of agricultural products. 

  • These loans are available for terms up to five years and are reviewed annually.
  • The loan is renewed at the end of the term. 
  • Security for loans can be with fixed property or other forms of security acceptable to Land Bank representatives.
  • The loan is repayable in full annually or when the proceeds of the crop are received.

Revolving credit facility

The purpose of this short-term loan is for the finance of short-term capital requirements and other general or operational needs of the business. The loan is offered to agri-processing businesses, wine, poultry, feedlots, piggery, wine, cash crops and mixed farming (livestock and crop). 

  • The term of the loan is up to 5 years and is reviewed annually. 
  • The required security can be in the form of a first bond over fixed property or through additional security arranged with the bank.  
  • The facility is repayable in line with the income stream of the business.

Value chain finance

This loan offers production finance to farmers against a written agreement between the buyer and the seller for the production of and sale of a specific quantity, quality, the specific price which allows the value of the contract to be determined over the loan term. 

  • The term of the loan is seasonal and is renewable annually upon review at the end of the production season.
  • Both the farmer and the buyer must meet the eligibility conditions of the bank.
  • The security requirement is the cession of proceeds from the sale of crops and livestock financed by the bank. Additionally, cession of comprehensive insurance, off-taker agreement and delivery contract at a specified price together with other additional security arranged with the bank.

Potential beneficiaries

A broad spectrum of clients is provided for in the agricultural sector:

  • Emerging farmers.
  • Established farmers.
  • Co-operatives.
  • Agricultural related businesses.

Application requirements

  • Registered business.
  • Tax compliance status.
  • Certified copies of financial statements for the past 3 years for operational farms.
  • Supporting documentation is required for legal entities.
  • A business plan should be submitted.
  • It is imperative to have an acceptable form of collateral/security. 
  • Be a South African citizen or a permanent resident holder.
  • Have a clean credit record.
  • Have enough security equivalent to the amount being borrowed; and
  • Be able to afford the repayments on a loan.

Application process

Please visit the nearest Landbank offices in your area for the applications. For further information, you can contact the persons listed below. 

Contact details

Location Physical address Contact number
Cape Town  Belvedere Office Park, Block C, Pasita Road, Durbanville, 7550  Tel: 021 974 2200
Beaufort West  74 Bird Street, Beaufort West, 6970 Tel: 023 414 8300
George  55 York Street, George, 6530 Tel: 044 803 8800
Worcester  49 High Street, Worcester, 6850  Tel: 023 342 1756










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