SA's land price trends in the spotlight

Farm prices in South Africa are currently in the process of recovery, broadly reflecting good rainfall and subsequent high crop yields, as well as general regional economic realities. Wouter Kriel reports.

- Wouter Kriel

Relatively few farms were bought and sold in South Africa in 2020 due to the COVID- 19 pandemic and related lockdown restrictions. The restrictions led to several deeds offices either closing for extended periods or their staff working remotely, but with a reduced process rate.

This was according to Johann Bornman, chairperson of Agri Development Solutions.

Bornman said that data from January 2020 to January 2021 showed that the price of land in South Africa remained stable. “The transactions concluded were at low prices. We’re now in a positive price correction phase, which should continue for the next 12 months or more.”

Prof Ferdi Meyer, director of the Bureau for Food and Agriculture Policy (BFAP), agreed with this positive sentiment, saying that agriculture in general had had an excellent year in 2020.

IDEAL CONDITIONS

“It was a perfect [combination] of good rain for summer and winter grains, good prices overall, and the positive contribution of the exchange rate,” he said.

Produce that had a stellar year included maize, eggs, citrus, wheat and poultry. Land prices in these industries would reflect the positive investor sentiment, he added.