SA Agriculture Welcomes Budget Relief Amid El Niño Threats
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Farmersweekly.co.za reports that South African agricultural organisations have welcomed key measures in Finance Minister Enoch Godongwana’s 2026 Medium-Term Budget Policy Statement (MTBS) on 21 October, including a R10 billion fuel levy intervention, the additional funding for agricultural extension services, and infrastructure investment. While Minister Godongwana’s announcement offers some relief to farmers, agricultural organisations nevertheless warn that poor infrastructure, weak municipal management, and the effects of El Niño remain major risks to profitability and growth. The outlook raises concerns for the 2026/27 agricultural production season, with potential drought conditions threatening crops, livestock, and grazing.
Protected production provides greater control over growing conditions, but success still depends on healthy plants, sound management, and access to viable markets. This was the message from speakers at the Western Cape Undercover Farming Conference and Expo, held in Groot Drakenstein on 21 and 22 October. Tshogo fatso Matlala, a water and sustainable agriculture graduate trainee at GreenCape, said undercover farming infrastructure should be treated as a productive investment rather than merely protection against climate and production risks. Matlala estimated that undercover production represented a potential 5,4 billion Rand to 8,6 billion Rand investment opportunity, spanning shade netting and more intensive tunnel infrastructure.
And…South Africa’s groundnut industry ended the 2026 season on a high note, with improved yields, favourable prices, and renewed investment in cultivar development setting the stage for further growth. However, concerns over a developing El Niño are dampening prospects for the coming season. According to the Crop Estimates Committee’s September 2026 report, groundnut production was estimated at 65 620t, an increase of 3,6% from the 63 350t produced in 2025. This was despite a decline in the area planted, from 48 750ha to 44 650ha. Average yields increased from 1,30t/ha to 1,47t/ha. Adri Botha, chairperson of the South African Groundnut Forum, said that favourable rainfall had been the main driver of improved yields, with some farmers achieving exceptional results.
Protected production provides greater control over growing conditions, but success still depends on healthy plants, sound management, and access to viable markets. This was the message from speakers at the Western Cape Undercover Farming Conference and Expo, held in Groot Drakenstein on 21 and 22 October. Tshogo fatso Matlala, a water and sustainable agriculture graduate trainee at GreenCape, said undercover farming infrastructure should be treated as a productive investment rather than merely protection against climate and production risks. Matlala estimated that undercover production represented a potential 5,4 billion Rand to 8,6 billion Rand investment opportunity, spanning shade netting and more intensive tunnel infrastructure.
And…South Africa’s groundnut industry ended the 2026 season on a high note, with improved yields, favourable prices, and renewed investment in cultivar development setting the stage for further growth. However, concerns over a developing El Niño are dampening prospects for the coming season. According to the Crop Estimates Committee’s September 2026 report, groundnut production was estimated at 65 620t, an increase of 3,6% from the 63 350t produced in 2025. This was despite a decline in the area planted, from 48 750ha to 44 650ha. Average yields increased from 1,30t/ha to 1,47t/ha. Adri Botha, chairperson of the South African Groundnut Forum, said that favourable rainfall had been the main driver of improved yields, with some farmers achieving exceptional results.
