Agriculture Department Backs Food Security Measures
South Africa's food-price inflation has fallen to a 16-year low as the government directs R3.28 billion toward farmer and food-security programmes.
Updated on Nov. 3, 2026 in Agriculture
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The Department of Agriculture is implementing measures to strengthen domestic food production and food-system resilience, allocating R3.28 billion to food security and farmer-support programmes in 2026/27. Food and non-alcoholic beverage inflation declined to 1.1% in August 2026, its lowest level in 16 years.
Why it matters
South Africa imports more than 80% of its fertiliser, and fertiliser can account for roughly 30% to 50% of production costs for some grain producers, leaving farmers exposed to input-price shocks they often cannot pass on to consumers. Support aimed at smallholder and emerging commercial producers seeks to strengthen domestic output and reduce that exposure.
The R3.28 billion allocation for 2026/27 compares with food inflation falling from approximately 3.6% at the end of 2025 to 1.1% in August 2026. Fuel accounts for roughly 12% to 18% of total agricultural production and logistics costs, and how these pressures evolve after the allocation remains unclear.
The players
Department of Agriculture
The South African national government department responsible for agricultural policy, which is implementing CASP, Ilima/Letsema and related farmer-support programmes.
The details
The Department of Agriculture is implementing the Comprehensive Agricultural Support Programme (CASP), Ilima/Letsema, and programmes covering blended finance, extension and advisory services, infrastructure and irrigation, mechanisation, biosecurity and improved market access. Support is directed at smallholder and emerging commercial producers to build productive capacity and improve access to finance, markets and agricultural value chains.
Timeline
• 2025: South Africa ended the year with average food-price inflation of approximately 3.6%.
• 2026/27: R3.28 billion was allocated to food security and farmer-support programmes.
• August 2026: Food and non-alcoholic beverage inflation fell to 1.1%, a 16-year low.
Market Landscape
The Comprehensive Agricultural Support Programme (CASP) is the vehicle through which this 2026/27 allocation flows to smallholder and emerging commercial producers. The support is aimed at reducing reliance on imported inputs such as fertiliser, which South Africa imports at more than 80% of requirements.
Lower food inflation at the 1.1% August 2026 level can ease household grocery budgets, though the effect depends on continued price stability. Farmers receiving CASP and related support may see changes to input access and market opportunities.
The takeaway
Input costs such as fertiliser and fuel drive much of farm production expense, so supply-side support can influence both farm viability and consumer prices. Tracking how the 2026/27 allocation translates into output will show whether these measures hold food prices down over time.
Further reading
Explore more on Agriculture in South Africa, where input costs and food prices shape farm output.
Source note: This article includes information reported by Pmg.
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