New models needed for financing agriculture
Loan structures hinder emerging farmers and insurance products need to be refreshed
Stats SA recently released the 2018 fourth-quarter GDP numbers, which showed that the economy expanded 1.4% in the fourth quarter (quarter on quarter) and 0.8% for the full year. The positive growth was driven largely by finance, real estate and business services, with a 2.7% increase in the fourth quarter. Agriculture recovered after a difficult first two quarters, on the back of lower field-crop and horticulture output, emerging with positive seasonally adjusted growth in the last two quarters of 13.7% and 7.9% respectively. The relationship between finance and agriculture as a lever for economic growth has been extensively studied and there remains no ambiguity on its importance. It is a vital cog in agricultural development, as farmers need working capital, seed and production financing and investment or growth financing, as well as income and crop protection. According to the Banking Association of SA, commercial banks increased their agricultural lending 10.32% in 2017 and 11....
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.