1. LAND BANK – CELEBRATING 100 YEARS OF FINANCING AGRICULTURE!

2. ASHOK SOOKLALL AFC MANAGER PIETERMARITZBURG/VRYHEID KZN PROVINCE

3. The Land and Agricultural Development Bank of South Africa (Land Bank) celebrated 100 th anniversary in 2012. Landbank is a BANK which lends money to farmers which have to be repaid. It is not a grant funding organisation.

4. Land Bank is a specialist agricultural bank. The mission of Land Bank is: To develop and provide appropriate products for commercial and development clients. To leverage private sector investment into the agricultural sector. To develop partnerships with intermediaries for on lending. To develop techniques for financing high-risk agriculture and new business areas. To support programmes of the Ministry of Rural Development & Land Reform and Agriculture by aligning the Bank's products with these programmes. To contribute to rural development by linking up with government structures and activities.

5. New beginning The new strategy of the Land Bank represents an attempt to redirect the Bank to meet its mandate in alignment with the Land Bank Act

6. Rural Development and Agrarian Reform The Land Bank, as a rural and agricultural DFI has a responsibility to support Government’s efforts to increase access to land, provide support for emerging farmers and raise rural incomes.

7. Food security Food production at all levels of agriculture needs to be increased to feed South Africa, as well as to maintain healthy export levels.

8. Land and agrarian reform While gains have been achieved in land redistribution and agriculture, major challenges remain.

9. Development impact A major challenge facing DFIs is their inability to maximise their developmental impact.

10. Products and Services For 100 years, the Land Bank has been the bank of choice for the South African farming community – and is still the only bank specifically specialising in agricultural finance solutions. Among its product are the following:

11. Mortgage Loans -buy land, consolidate debt, and or other purposes linked to agriculture. Special Mortgage Loans for farmers who: Were previously denied the right to buy land Have the potential to become successful farmers Are historically disadvantaged and are first time buyers of agricultural land

12. Medium Term Loans Farming equipment Implements Farming vehicles Livestock (cattle, goats, sheep, pigs and poultry) Improvement of structures or any other loose farming assets Irrigation systems

13. Instalment Sale Finance This credit finance provides an option for farmers who want to buy movable farming assets and equipment. The goods financed constitute the primary security, and the Land Bank remains the titleholder of such goods until such time they are fully paid.

14. Instalment Sale Finance (Livestock) The facility offers clients an opportunity to purchase large breeding livestock (e.g. bulls, cows). The latest animal identification technology to micro chip the animals is also offered.

15. Establishment Loans The Land Bank provides establishment loans to farmers for perennial crops. -Sugarcane -Citrus

16. Short term (seasonal) loans - Production Short-term loans are tailored to meet important financing needs in the agricultural production cycle, ie input costs

17. THREE DEPARTMENTS B&CB – BUISNESS AND CORPORATE BANKING RCB – RETAIL COMMERCIAL BANKING REM – RETAIL EMERGING MARKETS

18. REM – Background The Land Bank’s objectives include: Increased food security, reduction in poverty and support for rural development.

19. Land Bank committed itself to addressing the challenges in the Black emerging agricultural segment and has established the Retail Emerging Markets(REM) unit to focus primarily on this market segment

20. The REM business aims to assist black emerging farmers to become established retail farmers through the provision of tailored development financing solutions.

22. REM CUSTOMER PROFILE Black emerging farmers Active in primary agricultural sector Lack of traditional forms of security Scale of operations is too small Insufficient access to resources Relative lack of skills to sustain a farming enterprise Clients can be individuals, trusts and other communal entities

23. REM FINANCING : BASED ON A STEP UP SYSTEM, STARTING AT A LOW INTEREST RATE OF AROUND 4% INCREASING EVERY YEAR TO MOVE FARMER FROM EMERGING TO COMMERCIAL. GEARING FARMERS TO BE ABLE TO STAND ON HIS OWN AFTER A 3/5 YEAR PERIOD. CEILING OF R3m DEPENDING ON TYPE OF ENTITY AND COMMODITY.

24. CONTACT DETAILS Kasthuri Nunkumar - 071 897 2405 Mark Mckee - 083 566 2038

25. Thank you