Land Bank offers concessional loans to drought-hit farmers | Fin24
 
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Land Bank offers concessional loans to drought-hit farmers

Mar 30 2016 15:00

Johannesburg - The Land Bank said on Wednesday that drought-stricken farmers could apply for concessional loans to help see them through the lean season.

The bank, which focuses on the agriculture sector, said in a statement it had raised R400m from the Industrial Development Corporation (IDC) for drought relief measures.

It said farmers in provinces declared drought disaster areas - KwaZulu-Natal, Mpumalanga, North West, Limpopo and Free State - could apply for the loans immediately.

"The loans can be used as a source of emergency working capital to minimise further losses to current farming operations, carry over debt as well as to repair and replace weather damaged property and equipment," the Land Bank said.

It said the loans will be offered at three basis points below the prime rate, which would be 7.5%, and can be repaid over an extended period.

"The Land Bank also offers a facility for tax relief to drought hit livestock farmers in disaster declared areas.

"Under this programme, farmers are granted exemption from income tax for livestock sold as a result of the drought," it said.

South Africa last year recorded its lowest rainfall levels since records began in 1904, scorching the key maize crop, which is forecast to be 27% lower this year, and parching grazing land used for livestock.

land bank  |  farming  |  economy  |  drought
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