DStv Channel 403 Saturday, 09 November 2024

Interest rate hike huge knock to farmers

In 2019 and 2020 wheat harvests had reached five million tonnes, enough to guarantee "self-sufficiency" for Iraq but now the country will need to important wheat, according to the agriculture ministry

JOHANNESBURG - AgriSA says the latest interest rate hike will see many farmers struggle to reach break-even point.

The South African Reserve Bank raised rates for the seventh consecutive time this week, taking the repo rate to seven percent.

Farmers will have to meet increasing debt servicing costs while coping with elevated fuel, feed, and fertiliser costs.

In the livestock sector, prices of grain and plant protein crops used for feed manufacturing have surged.

AgriSA says it has asked banks and government to step in with support.

 

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