It is disheartening to see how many South Africans, including parliamentarians, have forgotten the simple and influential role the Land and Agricultural Development Bank (Land Bank) played in South African agriculture. The former minister of agriculture, Derek Hanekom, summarised this role nicely in his foreword to the bank’s 1997 annual report:

The Land Bank, established in 1912, had a narrow mandate for many decades. Its focus was on mortgages for white farmers to acquire farmland. It also provided wholesale finance to agricultural cooperatives and marketing boards who on-lend production (short-term) finance to individual farmers.These loans were offered at below-market rates. This was because the bank was well supported by the state through an initial capital endowment, annual parliamentary allocations and state guaranteed long-term debentures and bonds sold in the capital market. Click here to read the full article