The Land and Agricultural Development Bank of South Africa is under pressure after allegations that its debt collection practices are unfairly targeting commercial farmers facing financial distress.
The Freedom Front Plus (VF Plus) has submitted a formal petition to Parliament on behalf of 150 commercial farmers and farming businesses, calling for an investigation into the bank’s debt recovery processes.
According to the party, some farmers claim the Land Bank has pursued liquidations and asset attachments despite there being no direct loan agreements between them and the bank. They argue that debts originally linked to agricultural cooperatives, including Suidwes Landbou, GWK and Unigro, were transferred without their consent.
VF Plus MP Kobus van den Berg said aggressive debt collection, undervalued farm sales and administrative errors have left many farmers financially devastated, warning that the situation could also affect food security and rural economies.
The petition calls for an urgent parliamentary investigation, a temporary halt on further asset attachments and stronger oversight of the bank’s debt recovery processes.
The Land Bank, established in 1912 to finance South Africa’s agricultural sector, has been rebuilding after a major financial crisis that saw it default on debt obligations in 2020. Since then, it has reduced its loan book and worked to lower non-performing loans as part of an ongoing restructuring programme.
The petition has been referred to Parliament’s Select Committee on Public Petitions and Executive Undertakings and the Select Committee on Agriculture for consideration.
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