Land Bank pleads for state support to help more disadvantaged farmers

The Land Bank's resumption of lending to new clients is a sign that is expecting to turn a corner soon. But it has not done so yet - it is still on its way. 

According to the bank's financial statements for the 2022 financial year, presented on Monday, it generated a profit of R1.39 billion, a complete turnaround from the R711 million loss it recorded in the 2021 financial year. While this looks like the Bank has found a working formula to get back in the lending game and support farmers after an absence of two-and-a-half years, it still has many details to iron out before it can say it's on the path to running a sustainable business again.

The bank defaulted on its debt in April 2020, which forced it to stop offering loans to new customers and left thousands of emerging farmers with no alternative. The bank held around 28% market share in lending to the agricultural sector in SA, making it the biggest player in the country.