Agricultural budget must deliver tangible benefits for family farmers

Saai: Agricultural budget must deliver tangible benefitsfor family farmers

Saai takes note of the 2026 Medium Term Budget PolicyStatement presented by Minister of Finance Enoch Godongwana on 21 October 2026.While the government's commitment to greater fiscal discipline and economicreform is welcomed, Saai emphasises that the success of the budget mustultimately be measured by the extent to which it improves the circumstances ofSouth Africa's family farmers.

Foot-and-mouth disease and animal health

Saai welcomes the allocation of R606.4 million towards therollout of foot-and-mouth disease (FMD) vaccines. However, making fundingavailable will not, in itself, resolve the crisis. Farmers urgently need accessto affordable and effective vaccines. Saai will continue to advocate fortransparent procurement processes, private-sector participation and the rapidavailability of vaccines. Protecting South Africa's livestock industry andrestoring access to export markets must remain priorities.

Agricultural funding and government expenditure

The budget provides for R39.8 billion in agricultural andrural development expenditure in the current financial year. Saai believes thetrue value of this spending lies not in the size of the allocation, but in thesupport that ultimately reaches farmers. Family farmers need practicalassistance, effective veterinary services, agricultural research and agovernment administration that enables agricultural production rather thanobstructing it. Taxpayers' money must be used to strengthen agricultural competitiveness,not to sustain inefficient state institutions.

Drought risks and climate resilience

The government's recognition of the potential impact of ElNiño on agricultural production in 2026 and 2027 is important. Saai welcomesthe provision made for potential disasters and other risks but cautions thatdrought relief often reaches farmers too late. Government should instead workproactively with organised agriculture to mitigate risks and ensure thatassistance can be made available quickly and effectively when needed.

Water, electricity and transport infrastructure

Saai welcomes the government's intention to enable greaterprivate-sector participation in electricity supply, rail transport andinfrastructure development. Reliable water and electricity supplies, togetherwith efficient transport networks, are essential for profitable agriculture.Family farmers cannot continue bearing the costs of deterioratinginfrastructure, unreliable services and government mismanagement. Saai supportsreforms that promote competition, unlock private investment and give farmers greatercontrol over their own production circumstances.

Property rights, land reform and rural development

The government's intention to settle 870 land restitutionclaims over the medium term must be accompanied by legal certainty, theprotection of property rights and the sustainable use of agricultural land.Saai supports land reform that creates new opportunities for successful familyfarming rather than processes that undermine production and investment. Thesuccess of land reform should be measured by productive farms, sustainablebusinesses and employment opportunities, not merely by the number of land claimssettled.

Family farmers must be the measure of success

Saai emphasises that South Africa's family farmers arealready under enormous pressure from rising input costs, animal diseases,infrastructure challenges and economic uncertainty.

The agricultural sector's growth of 3.5% during the firsthalf of 2026 demonstrates its resilience, but does not necessarily mean thatindividual family farming operations have become more profitable orsustainable.

Saai will continue to advocate for policies that protect theindependence, property rights, competitiveness and market access of familyfarmers.

Government's responsibility is not to farm on behalf offarmers, but to create an environment in which farmers can farm successfully.

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