Local farmer and agricultural advisor Kgomotso Ranchu has urged emerging farmers in the Free State to prioritise business management skills to improve sustainability and access to funding.
In an interview with Bloemfontein Courant, Ranchu emphasised that understanding the business side of agriculture is just as important as production, particularly for young and small-scale farmers. His company focuses on improving small-scale farmers’ access to resources and markets and has assisted more than 160 farmers in securing over R50 million in funding.
Ranchu said many modern farmers struggle to access funding because they lack the skills required to compile proper business plans and meet compliance standards. “Farmers need to understand the importance of being compliant to secure funding. Most institutions do not want to fund non-compliant farmers, with the exception of some government departments. Commercial banks want bank statements, business plans, and proof that you comply with Sars requirements,” he explained.
He added improving financial literacy and record-keeping would significantly increase farmers’ chances of securing investment and growing their operations.
To address the Free State’s high unemployment rate, Ranchu highlighted agro-processing as a key opportunity for job creation. He noted while the province produces large volumes of raw agricultural products, farmers often fail to move further along the value chain.
“We produce a lot of raw products, but we do not follow the value chain. If more farmers invest in manufacturing and agro-processing, it could create many jobs. Agro-processing is labour-intensive and has strong employment potential,” he said.
Ranchu also pointed to ongoing challenges in the sector, including climate variability, rising input costs, limited access to finance, infrastructure constraints, and restricted market access. He noted unpredictable rainfall patterns and increasing costs of imported fertilisers and chemicals continue to place significant pressure on emerging farmers.
Despite these challenges, he believes stronger business acumen and value-chain participation can unlock growth and employment opportunities in the agricultural sector.
