18.6 C
Cape Town
Friday, May 15, 2026

Deeds and Finance Reform: PGP Champions the Path to Commercial Farming at NAMPO 2026

NampoDeeds and Finance Reform: PGP Champions the Path to Commercial Farming at NAMPO 2026

The final leg of the 2026 NAMPO Harvest Day turned its focus toward the future of South Africa’s developing farmers. Phahama Grain Phakama (PGP), the farmer development arm of Grain SA, hosted a high-level Plenary Round Table aimed at dismantling the barriers that prevent smallholder farmers from transitioning into sustainable commercial agriculture.

Under the theme “Empowering Developing Farmers to Commercialisation,” the dialogue brought together Agriculture Minister John Steenhuisen, Free State MEC Elsabé Rockman, AFASA President AJ Mthembu, and private sector leaders.

Unlocking Land as a Bankable Asset

The most significant theme was the urgent need to convert state land leases into bankable assets to unlock agricultural finance. Currently, many successful farmers operate under lease agreements that limit their ability to access funding due to a lack of collateral.

Minister John Steenhuisen made a firm commitment during the session, advocating for the transfer of title deeds to successful farmers on state land. “Where farmers are successfully farming on state land, we should be giving those title deeds over to those farmers. They have earned their stripes,” the Minister stated. This shift is intended to provide the “patient capital” and security required for modern farming operations.

A New Model for Growth

PGP Chairperson Jeremia Mathebula outlined the organization’s development model, which categorizes farmers—subsistence, smallholder, and new-era—to provide targeted mentorship and training.

To ensure measurable action, Mathebula announced a focused initiative to identify and support five developing farmers per province over the next five years. This targeted commercialization program received strong support from both government and private sector stakeholders.

The Role of Private Partnerships

The private sector remains a cornerstone of this transition. Bayer, a long-standing PGP partner, revealed that their coordinated support has reached more than 18,000 farmers nationally. By utilizing digital agriculture tools, satellite monitoring, and improved seed technologies, these farmers are improving yields and decision-making.

However, AFASA President AJ Mthembu called for an end to “working in silos,” urging for better coordination across the sector to create real impact.

Overcoming Infrastructure Hurdles

The round table addressed physical obstacles to profitability, such as deteriorating rural roads and limited storage facilities. Free State MEC Elsabé Rockman confirmed that the government is prioritizing agricultural economic routes and improving rural infrastructure planning to support market access.

Conclusion: From Discussion to Action

The session concluded with a call for accountability and results. PGP Vice Chairperson Thobani Ntonga emphasized that the objective is to move beyond discussing problems and focus on “dismantling the barriers” preventing farmers from upscaling. For South African food security to remain resilient, the industry must deliver bankable land ownership, improved logistics, and stronger market access pathways.

Check out our other content