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LAND REDISTRIBUTION FOR AGRICULTURAL DEVELOPMENT: Grants for Agricultural Purposes for SMEs

Updated: Apr 21, 2021




About the Opportunity

This program provides grants to previously disadvantaged individuals to get land for agriculture. Applicants who want to farm may apply for an LRAD grant but have to make a contribution, either in cash or in labor, to a minimum of R5 000 - more if the grant is larger. Grants vary from a minimum of R20 000 to a maximum of R100 000.

Individuals or groups may apply. In many cases, groups already using communal land owned by local authorities can apply to the program to buy additional land, Women, youth and the disabled in particular are welcome to apply.



PREVIEW

The LRAD information booklet provides basic answers to frequently asked questions. This booklet is meant to assist potential beneficiaries and sellers to understand the basic concepts and requirements which must be satisfied in order to benefit from the program from any point, whether as a seller, agent, or beneficiary.

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  • What is the LRAD program?

The Land Redistribution for Agricultural Development program was designed to help previously disadvantaged citizens from African, Coloured, and Indian communities to buy land or agricultural implements specifically for agricultural purposes.

  • How does it help people?

Most of our people do not have sufficient money to buy land for farming purposes. This program will make some money available to successful applicants to help supplement what they already have for purchasing agricultural land. This will be done in the form of government grants.

  • What is the LRAD grant?

It is a nonrefundable form of funding or financial contribution to help prospective farmers to purchase land by the government.

  • How much will I get?

A formula will be used to determine how much an individual will get. This formula is based on how much money or inputs to be used in the farming operations on that piece of land (own contribution in-kind), or a combination of the two a person contributes towards the purchasing of that particular piece of land or on-farm implements (own financial contribution).

  • What is your own contribution?

The grant will only serve as financial supplementation to what an applicant already has. Own contribution is therefore the money that an applicant should bring into the process to form part of the whole capital package, viz. own contribution + grant.


  • Which departments are responsible for the program?

Grants will be provided by the Department of Land Affairs, but both the departments of Land Affairs and Agriculture will work in collaboration to oversee the whole process from start to finish.


Who should apply?

You should

• Be a member of a previously disadvantaged group (i.e. African, Coloured or Indian)

• Be 18 years or older

• Intend to use the land for agricultural purposes only

• Intend to farm on a full- time basis (except for safety-net projects)

• Not hold any position within government structures

• Be prepared to participate in a training program after land acquisition

• Be in a position to make an own contribution

• Be an organized entity if applying as a group

• Have a bank account



For more information, please click:

https://www.nda.agric.za/docs/GenPub/LRAD_E.htm


Official Website:

https://www.drdlr.gov.za/sites/Internet



Contact Details:

Tel: 012 319 7020

Contact Agricultural Development: 012 319 8495

Contact Land Acquisition: 012 312 9600


184 Jeff Masemola Street,

Pretoria1Fax012 312 8066


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