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Unlocking Opportunities of Smallholder Farms in South African Agriculture
Smallholder farms play a significant role in South Africa’s agricultural landscape. Despite facing numerous challenges, small-scale farmers hold tremendous potential to drive positive change in the country’s economic state while fostering regenerative and sustainable agricultural practices.
As an organisation dedicated to promoting sustainable solutions, RegenZ recognises the transformative power of smallholder farms in South Africa. This guide aims to shed light on the importance of supporting these farmers.
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What's in our sustainable farming guide?
What are smallholder farms?
Smallholder farms refer to small-scale agricultural operations, usually family-owned and operated and managed by individual farmers or families. Smallholder farmers often cultivate a diverse range of crops, including maize, vegetables, fruits, and livestock. These farms typically cover relatively small areas of land and are characterised by limited resources, including land, capital, and equipment. Despite these constraints, smallholder farming plays a crucial role in the agricultural sector of South Africa, contributing to food production, rural livelihoods, and poverty alleviation.
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There are approximately 2 million small-scale farmers (compared to 35,000 commercial farmers). However, even some of these commercial operations can be considered small-scale, since only a small minority (around 2600) are large-scale operations.
What practices are used by small-scale farmers?
Although small-scale farming practices can vary depending on the region, climate, resources, and specific farming objectives of individual farmers in South Africa, here are some common practices used by small-scale farmers to manage their farms and sustain their agricultural activities.
Why is small-scale farming important?
Smallholder farms in South Africa are an essential component of the country’s agricultural landscape, and the smallholder farming sector in South Africa holds immense promise for driving economic growth, reducing poverty, and promoting sustainable and regenerative agriculture. While they may face various challenges, such as limited access to markets, financial constraints, and inadequate infrastructure, smallholder farming plays a vital role in ensuring food security and promoting sustainable agriculture practices.
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What are the challenges facing small-scale farmers in South Africa?
Smallholder farmers in South Africa face several challenges, the most pressing of which is generally limited access to credit and financing options, along with market access.
Access to capital is crucial for smallholders to invest in their farms, purchase inputs, and improve productivity. However, due to financial constraints, many smallholder farmers struggle to access loans or other financial services. Limited financial resources often hinder their ability to invest in farm inputs, modernise equipment, and adopt improved farming techniques.
Smallholder farmers in South Africa also frequently encounter difficulties in accessing markets for their produce. The lack of efficient transportation infrastructure, market information, and bargaining power can limit their ability to sell their goods at fair prices. Without efficient means to transport and sell their produce, smallholders face difficulties in reaching consumers and obtaining fair prices for their goods.
Other challenges faced by smallholder farmers
Major constraints faced by smallholder farmers
Research from an Africa.connected policy paper highlights that smallholder farmers in Africa are hampered by:
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Other literature identified that the constraints to value addition operate mainly at the primary production level.
What can government do to support small-scale farming?
South Africa’s government has recognised the potential that value addition has to improve small-scale agriculture and, in turn, national food security. As such, the government has implemented several programs to support smallholder farmers. These include financial assistance schemes, agricultural training and extension services, and initiatives to improve access to markets and infrastructure.
While it can be challenging to quantify the return on these subsidies, there have been several initiatives that have demonstrated positive outcomes. Some projects include:
Market Access Initiatives
South Africa’s government has recognised the potential that value addition has to improve small-scale agriculture and, in turn, national food security. As such, the government has implemented several programs to support smallholder farmers. These include financial assistance schemes, agricultural training and extension services, and initiatives to improve access to markets and infrastructure.
Strengthening agricultural infrastructure, such as irrigation systems and storage facilities, is vital for smallholders to optimise their production and minimise post-harvest losses. Initiatives like the Accelerated Community Infrastructure Programme (ACIP) have focused on improving infrastructure in rural areas, benefitting smallholder farmers and their communities.
The South African government has taken steps to support small-scale farmers and integrate them into the agricultural economy. However, a recent study found limited participation of these farmers in agro-processing, highlighting the need for improved access to information, technology, skills, and markets. Value addition in the food industry is crucial, but policies have not significantly contributed to this at the national level. Challenges include inadequate access to finance, rising input costs, lack of appropriate technology and skills, and insufficient knowledge of agro-processing and quality standards. The study suggests that the government should reconsider its funding policy, prioritise programs enhancing access to information and technology, and align food trade policies with partner countries. Agriculture plays a critical role in Africa’s economic growth.
In order to prevent the ‘black hole’ of funding and ensure accountability, traceability plays a crucial role in government efforts to support smallholder farmers in South Africa. Implementing robust traceability systems allows for transparency and oversight throughout the financial assistance schemes and programs provided to small-scale farmers. By establishing traceability mechanisms, the government can track the flow of funds from their allocation to the beneficiaries, ensuring that the financial assistance reaches its intended recipients. This helps prevent mismanagement, corruption, and the diversion of funds, ultimately safeguarding the interests of smallholder farmers and promoting the efficient use of resources. Better traceability also enables the government to evaluate the impact of its support programs, identify areas of improvement, and make informed decisions based on reliable data.
Other digital traceability systems can be extended beyond financial transactions to include the tracking of inputs, such as seeds and fertilisers, and the traceability of agricultural products throughout the value chain. This enhances food safety and quality assurance, strengthens market access for smallholder farmers, and builds consumer confidence in locally produced goods. Strengthening agricultural infrastructure, such as irrigation systems and storage facilities, is vital for smallholders to optimise their production and minimise post-harvest losses. Initiatives like the Accelerated Community Infrastructure Programme (ACIP) have focused on improving infrastructure in rural areas, benefitting smallholder farmers and their communities.
NGO support
NGOs and private sector organisations are playing a crucial role in filling the gaps in government support for smallholder farmers. These collaborations contribute to the holistic development of smallholder farmers and the promotion of sustainable agricultural practices. Here are some of the non-governmental programmes supporting smallholder farming in South Africa:
Siyazisiza’s Small-holder Farmer Enterprise Development Initiative empowers small-scale farmers to optimise formal market opportunities and overcome barriers that typically exclude them. This market-driven initiative involves active engagement with the market and the establishment of supply agreements. Siyazisiza's social enterprise, Community Farmer Network, represents small-holder farmers in securing these agreements. Subsequently, a program is designed to provide necessary resources and capacities to farmers and other stakeholders along the value chain, enabling them to fulfil the agreement's terms. The initiative encompasses various strategies, including income generation, asset utilisation, investment choices, and asset and income preservation.
The World Wildlife Foundation (WWF) is promoting, capacitating and supporting rural smallholder farmers to commit to climate-smart farming practices and access trading and alternative markets. WWF trains farmers and promotes collective stewardship in conservation-worthy landscapes, improving market access through incentives. They focus on high biodiversity areas and strategic water sources. The climate smart farming approach shifts away from unsustainable practices towards multi-cropping, water conservation, and protecting natural resources. This requires policy, finance, and technology solutions for climate adaptation, particularly for smallholder farmers. Climate smart agriculture includes integrated land use planning, minimal soil disturbance, rotational grazing, and rainwater harvesting while reducing greenhouse gas emissions.
The Lima Rural Development Foundation is a non-profit organisation that aims to address the challenges faced by smallholder farmers. They work towards empowering farmers by providing training, capacity-building, access to resources, and market linkages. To address the systemic challenges faced by smallholder farmers, Lima Foundation also engages in advocacy and policy initiatives. They collaborate with stakeholders, including government agencies and policymakers, to raise awareness of the needs and potential of smallholder farmers. Through policy dialogue and research, they strive to influence the development of supportive policies and programs for smallholders.
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Collaborative efforts: Government and stakeholder involvement
While there have been limitations in government support for smallholder farmers, it is crucial to acknowledge the ongoing collaborative efforts among stakeholders. Recognising the significance of smallholder farming, government agencies, NGOs, and private organisations are increasingly working together to address the challenges and create an enabling environment for smallholders to thrive.
However, it is crucial for government agencies and other stakeholders to strengthen their support for smallholder farming. By developing comprehensive policies, providing targeted financial assistance, improving infrastructure, and engaging in collaborative efforts, South Africa can harness the full potential of smallholder farming, ultimately benefiting rural communities, ensuring food security, and contributing to the nation’s agricultural development.
Digitalisation for Africa’s smallholder farmers
Technology plays a vital role in increasing productivity, yields, and income for all players in Africa’s agriculture story. Digitalisation and innovation in agriculture are crucial for addressing food security concerns and mitigating the effects of climate change. According to Agrilinks research, digital innovations have already transformed the lives of smallholder farmers in Africa, increasing yields by up to 70% and incomes by 40%.
Digital platforms connect farmers with essential services such as finance, insurance, and buyers, improving productivity and reducing costs. Access to digital resources also allows farmers to plan better against extreme weather events, access market information, and reach a larger marketplace.
Although the use of these digital farming services is growing at about 45% each year, scaling digital solutions and overcoming challenges like limited connectivity, expensive devices, lack of training, and government support are necessary for widespread adoption. Public-private partnerships, investments in infrastructure, reducing device costs, and building digital confidence among farmers are key to accelerating digital transformation in Africa’s agriculture sector.
The potential of smallholder farms in South Africa
Smallholder farms offer multiple benefits to South Africa, ranging from poverty reduction and rural development to food security and economic growth. By empowering small-scale farmers, the country can achieve inclusive agricultural practices, equitable distribution of wealth, and reduced dependence on food imports. Moreover, supporting smallholders can lead to job creation, improved access to education and healthcare, and the preservation of cultural heritage.
RegenZ is specifically interested in exploring opportunities for collaboration in regenerative hemp production and hybrid true potato seed farming. These emerging sectors offer exciting prospects for sustainable agriculture and economic growth. Industrial hemp, with its diverse applications in textiles, construction, and health products, presents an opportunity for smallholder farmers to diversify their income streams. Similarly, hybrid true potato seed technology can revolutionise potato farming by offering improved yields, disease resistance, and reduced reliance on traditional seed potatoes.
Want to learn more about hybrid true potato seed?
We've created a comprehensive guide the tells you everything you need to know.
Fostering collaboration and innovation in South Africa's smallholder farming
Smallholder farming in South Africa holds immense potential for job creation, poverty reduction, and food security. RegenZ invites individuals and organisations involved in these spaces to join hands in fostering collaboration, knowledge sharing, and investment. RegenZ aims to contribute to this transformative movement by exploring opportunities in industrial hemp production and hybrid true potato seed farming. By working together, it is possible to unlock the potential of industrial hemp and hybrid true potato seed farming, thereby benefiting smallholder farmers and contributing to South Africa’s sustainable development goals. Through collective action and sustained support, smallholder farming can truly thrive, creating a brighter future for South Africa’s agricultural sector and its rural communities.
Learn more about the trials we’re currently running to test our Smallholder Farmer Starter Package.