The Department of Agriculture, Land Reform and Rural Development and set aside a package of R1,2 billion to address the effects of Coronavirus and ensure sustainable food production post the pandemic. On this package the department has availed R100million for the Covid-19 Relief Fund to the Land Bank to assist farmers under distress and minimise losses to current farming operations as a result of Covid-19.
This fund may be used as a loan instalment waiver of no more than one year of instalments due per farmer whose business operations have experienced distress caused by COVID-19 and associated intervention measures implemented by government. The loan instalment waiver absolves the farmer from loan instalments as these instalments or part thereof will be covered by the funding from the department.
This fund will be made available to existing Land Bank clients (customers with an annual turnover not exceeding R10 million). This includes Land Bank farmers who are serviced through the Bank’s intermediary partners. The fund will be applied for loan instalment waiver of no more than one annual instalments due per client whose business operations have experienced distress due to the impacts of COVID-19 and associated intervention measures implemented by government. This concession will be applicable for distress, for the period starting on 1 April to 31 December 2020 for instalments due. The amount that a single client may access for this non-repayable financial support is limited to a maximum of R2million. The cut-off date for all applications for instalment relief from this fund is 16 October 2020.
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