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A Financial Model To Fund Land Redistribution In The Sugar Industry Of Kwazulu-Natal

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  • Simms, P.

Abstract

This article examines the requirements for successful redistribution of land to emerging commercial farmers. It outlines a model used to successfully finance emerging commercial farmers in the sugar industry. The model uses a capital sacrifice by the seller to subsidise the interest rate on the bond on a declining, inflation linked basis, this overcomes the initial cash flow problems associated with agricultural land purchases. The article proposes this as a method which could finance other land transactions with very limited impact on the fiscus, land and capital markets.

Suggested Citation

  • Simms, P., 1996. "A Financial Model To Fund Land Redistribution In The Sugar Industry Of Kwazulu-Natal," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 35(4), December.
    • Handle: RePEc:ags:agreko:267978
    DOI: 10.22004/ag.econ.267978
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    References listed on IDEAS

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    1. W. L. Nieuwoudt, 1980. "Value and Rent of Farm Land," South African Journal of Economics, Economic Society of South Africa, vol. 48(4), pages 249-254, December.
    2. Kille, G. S. & Lyne, M. C., 1993. "Investment On Freehold And Trust Farms: Theory With Some Evidence From Kwazulu," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 32(3), September.
    3. van Zyl, Johan, 1994. "Farm Size Efficiency, Food Security And Market Assisted Rural Land Reform In South Africa," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 33(4), December.
    4. Pasour, E. C., Jr., 1990. "Agriculture And The State: Market Processes And Bureaucracy," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 29(4), December.
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