LRAD grant

About applying for a grant in terms of the Land Redistribution for Agricultural Development (LRAD) programme

The Land Redistribution for Agricultural Development (LRAD) sub-programme was designed to assist previously disadvantaged citizens from African, Coloured and Indian communities to access land specifically for agricultural purposes, or to make better use of land already accessed.

To qualify, you must:

  • be a member of a previously disadvantaged group (i.e. African, Coloured or Indian)
  • be 18 years or older
  • intend to use the land for agricultural purposes only
  • intend to farm full-time 
  • not hold any position within government structures
  • be prepared to participate in a training programme after you have acquired land
  • be in a position to make your own contribution
  • be an organised entity if applying as a group
  • have a bank account.

Successful farmers who wish to expand their operations may apply for further grants, but the total of LRAD grants to one applicant may not exceed R430 857100 000, this is called graduation where one graduates from small-scale to commercial farming.

Further capital that may be required to commence or expand a farming project after it has been realised that the allocated grant cannot meet the demands of the land can be obtained from a bank. An LRAD grant is not repayable as it is not a loan.

A formula is used to determine how much an individual will get. This formula is called a sliding scale where one will give a small own contribution and get a large grant amount, and later one will give more and get less. To qualify for a grant of R111 152 20 000 , you have to make an input of R513 000. The input does not have to be in the form of cash – it can also take the form of farming equipment, livestock and other agricultural assets, as well as labour.

What you should do

  1. Identify the land you wish to buy. The provincial land reform office or the district office near you can give you information about the land that is available, or even the land that these offices might have identified through the Area Based Planning process. Alternatively, you may already have access to land, such as communal land.
  2. Approach the provincial land reform office or the district office near you to apply for the grant.
  3. The following must accompany your application:
    • a land use proposal or farm plan (project proposal) if there is one and if not the  land reform office will assist in the development of one
    • an option to sell with an agreed price, if leasing with an option to buy
    • a list of household members or group members and their identification, if the proposal is for a group
    • a valuation report if there is one and if not the provincial land reform office or district office land reform office will assist in the development of one.

How long does it take

Under normal circumstances the process might take a minimum of four months, but it can take longer depending on the complexity of some projects.

How much does it cost

A minimum amount of R111 152 20 000  will require a minimum own contribution amount (cash or in-kind) of R135 000. A maximum amount of R1430 857 00 000  will require a maximum own contribution amount of R5400 000. Between the minimum and maximum amounts, there is a continuum of grant amounts, depending on the participant's own contribution.

Forms to complete

You will be given a form to complete at the provincial office of the Department of Rural Development and Land Reform or at the local agricultural extension office.

Who to contact