Statutory Levy Collections Cross R1 Billion: What This Means for Small to Medium-Scale Farmers

The South African agricultural sector has reached a historic milestone. According to the National Agricultural Marketing Council (NAMC), statutory levy collections for the 2023/24 financial year have surpassed R1 billion, increasing from R896 million in 2022/23 — a jump of approximately R126 million.

These levies, collected under the Marketing of Agricultural Products Act No. 47 of 1996, are a critical funding mechanism for the agricultural sector. They are used to support industry functions including research, transformation, export promotion, market access, information, and production development.

How Levy Funds Are Being Used

For small and medium-scale farmers, the allocation of these funds is particularly important:

• Research – 45% (R460 million): Almost half of levy income is directed to research, focusing on innovation, productivity improvements, and sustainable farming practices. For smaller operations, this means access to new technologies, crop varieties, and farming methods that can improve yields and profitability.
• Transformation Projects – 19.8% (R202 million): A significant portion of levies is invested in empowering historically disadvantaged farmers and rural communities. Small to medium-scale farmers stand to benefit from training, mentorship, and support programmes aimed at increasing inclusivity and equity in the sector.
• Export Promotion & Market Access – 10.2% (R104 million): These funds help farmers access international markets, create new business opportunities, and diversify income streams beyond local markets. For medium-scale producers, this could mean better market visibility and potential partnerships with buyers abroad.
• Information & Data – 7.8% (R80 million): Access to accurate market and production data helps farmers make informed decisions. From knowing stock levels to market trends, this investment ensures farmers are not flying blind when planning crops, managing inventory, or negotiating prices.
• Consumer Education & Production Development – 14.4% (R177 million): Funds are also used to improve local production practices, quality control, plant improvement, and consumer awareness initiatives. This helps smaller farmers enhance the quality of their produce and respond to market demands effectively.

Why This Matters for Small to Medium-Scale Farmers

1. Access to Innovation: With nearly half of the levy funding going to research, farmers can benefit from improved seed varieties, pest management solutions, and modern farming techniques.
2. Support for Inclusivity: Transformation projects directly target emerging farmers, ensuring that smaller operations receive training, mentorship, and financial assistance.
3. Better Market Opportunities: Funds for export promotion and market access open doors for farmers to grow their businesses and increase profitability.
4. Reliable Information: Access to industry data helps farmers plan better, reduce risks, and make decisions that can improve productivity and reduce waste.
5. Enhanced Local Production: Investment in consumer-focused initiatives and production development strengthens local competitiveness, helping small to medium-scale farmers meet market standards.

A Sector Poised for Growth

The NAMC report highlights how grains and oilseeds industries have leveraged levy funds to create world-class information systems, improving national food security and industry success. This demonstrates how strategic investment of levies can empower smaller producers and strengthen the agricultural value chain.

For small and medium-scale farmers, the growth in levy collections is a promising sign. It means more resources, better access to research and support programs, and increased opportunities to compete in local and global markets.

As statutory levies continue to drive the sector forward, engagement with industry associations and awareness of available programmes will be key for small to medium-scale farmers to fully benefit from this historic growth.