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How to start farming with R1 million
Farmer's Weekly
|October 29, 2021
Is it possible to start a farming operation in South Africa in 2021 for less than R1 million? A number of experts discussed the start-up potential of layers, broilers, pigs, vegetables and lucerne with Susan Marais.
FAST FACTS
- It’s best to first find a market for your product before beginning production. If you cannot sell it, your farming operation will not be viable.
- With layer hens, farmers can start earning a monthly income within a very short time.
Could a recently retrenched individual who has always dreamt of farming take R1 million from his or her pension savings and start a farming operation in South Africa’s current economic climate? The answer is yes, no, and maybe.
In this case, the devil truly lies in the detail. For this hypothetical farm, Farmer’s Weekly limited the scope to pig, poultry (both layers and broilers), vegetables and lucerne. While experts quickly dismissed some of these hypothetical farms, others just might be possible.
A few assumptions are necessary. The first is that the farm is in Gauteng, close to a market. The second is that the potential farmer does not own land and has no political means of obtaining land.
According to Michael Corbett, FNB’s head of agriculture in Gauteng, leasing land would probably be the best bet. After all, there is a difference between being a farmer and being a landowner.
“A quick Internet search indicates that we could possibly find land to lease for between R10 000 and R12 000 a month. Depending on size and infrastructure, this could work for a new farmer.”
Agricultural economist and independent consultant Jan de Jong agrees with Corbett.
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