As South Africa assumes the presidency of the G20 in 2025, agriculture is increasingly under the spotlight—not just as a key economic driver, but as a sector critical to environmental resilience and national food security. Within this broader context, grain farmers in South Africa find themselves at a critical juncture where sustainability is no longer optional—it is essential.

Why Sustainability Matters Now More Than Ever

South Africa’s grain farmers have weathered an array of challenges in recent years. From severe droughts and international market instability to excess rainfall and rising input costs, the sector has demonstrated resilience—but at a cost. Paul Makube, Senior Economist at FNB, remarked that while the outlook for 2025 remains positive, the sector is still recovering from a series of climate-induced shocks.

Despite these challenges, farmers have continued to adapt, employing conservation agriculture techniques such as crop rotation, minimum tillage and regenerative practices. These methods not only help preserve soil health and moisture but also contribute to long-term environmental sustainability—an increasingly vital goal as climate change continues to reshape agricultural norms.

The message from the panel at NAMPO was clear: environmental sustainability cannot be separated from economic viability. Without sustainable financial models and appropriate policy support, even the most eco-friendly farming methods cannot succeed.

Balancing the Books: Economic Sustainability on the Ground

When people think of sustainability in agriculture, they often imagine solar panels, no-till planting or organic inputs. However, as pointed out by FNB’s Gert Breet and farmer Cobus van Coller, sustainability must also be defined in financial terms.

Input costs are escalating rapidly. Fertiliser alone can account for 30% to 45% of production costs and nearly all inputs are imported—priced at global rates—while South African grain is typically sold at export parity. This creates a structural imbalance that farmers must continuously manage.

According to van Coller, the key lies in shifting focus from output (yield per hectare) to profitability per hectare. He argues that sustainable farming is about navigating the cycles—both climatic and financial—without overextending and building resilient systems through integrated models such as crop-livestock farming.

The ESG Imperative and Carbon Compliance

The regulatory environment is evolving rapidly. South Africa's Climate Change Act now sets sector-wide carbon emission targets, and Environmental, Social and Governance (ESG) standards are fast becoming non-negotiable. But despite the top-down push for accountability, most farmers are already aligned with many of these goals.

As Marguerite Pienaar economist from GrainSA noted that many South African farmers are already practicing conservation farming, supporting local communities and managing water responsibly. The missing link is often the documentation and measurement—keeping records of these efforts to prove compliance and unlock value through sustainability-linked incentives.

Data, then, is the new currency. Whether it's measuring carbon footprints or tracking ESG compliance, the ability to document and quantify sustainable practices will increasingly determine access to financing and global markets.

FNB’s Role: Financing the Future of Sustainable Farming

Recognising the importance of financing in sustainability transitions, FNB has introduced a suite of products to support farmers. Chief among them is the FNB Sustainable Agriculture Loan, that they launched in 2024. This long-term financing tool is designed to support capital investments in sustainability—such as solar energy systems, precision irrigation, biogas units, and biodiversity projects.

The bank has also introduced the Sustainability Lab, a platform that packages flexible funding structures with tailored advisory services. This is not just about loans—it’s about building partnerships and guiding farmers through their sustainability journey with expert support.

The Sustainable Agriculture Loan offers features like financing, two-year interest-only periods and ten-year terms—helping farmers invest in the future without crippling their present-day cash flow. Importantly, eligibility is broad, ensuring both smallholders and large commercial operations can benefit.

Real-Life Lessons: Learning from the Field

Farmers like Cobus van Coller have firsthand experience with the transition to sustainable agriculture. In 2006, he radically shifted from conventional to conservation farming without much available guidance. The learning curve was steep, but it was ultimately a move that saved his business.

Cobus van Coller warns that sustainability isn't about adopting buzzwords like "no-till" without understanding context. Soil type, climate and available equipment all influence what methods are viable. He encourages fellow farmers to start with basics—like crop rotation, minimal tillage and moisture conservation—before investing in expensive machinery. “Use your old equipment wisely,” Cobus advises. “Adapt it and build knowledge before scaling up.”

Cobus also challenges the perception that conservation agriculture always comes with a “J-curve”—a period of initial losses before gains. With proper planning and a step-by-step approach, this dip can be avoided or at least reduced.

The Role of Banks, Beyond Finance

FNB is changing how it engages with the agricultural sector. Beyond just offering loans, the bank is shifting its internal expertise—hiring professionals with environmental backgrounds rather than just accountants. This aligns with their growing role in helping farmers track carbon footprints and build ESG-aligned business plans.

Breet from FNB Private Wealth added another dimension: financial sustainability extends beyond the farm gates. Succession planning, family support and estate structuring are critical elements of sustainable farming. A resilient business must consider the next generation—ensuring that both knowledge and assets are preserved.

Policy and Trade: The Global Picture

International policy, particularly from the European Union, is also driving local change. The EU Green Deal, while currently under partial review, is creating a new standard for traceability and environmental compliance. As Paul Makube explained, any South African farmer looking to export must be able to prove their product’s origin and environmental footprint.

At the same time, geopolitical challenges—like U.S. tariffs and land reform concerns—continue to cast shadows. But these obstacles also serve as a catalyst for greater resilience, market diversification and strategic planning.

Conclusion: A Journey, not a Destination

The future of grain farming in South Africa will be shaped by the sector's ability to adapt, collaborate and innovate. Sustainability is not just about the environment—it’s about building systems that endure.

South Africa’s grain farmers are already laying this foundation. Through partnerships with banks like FNB, guidance from organisations like Grain SA and their own commitment to future generations. These institutions are redefining what it means to farm in the 21st century.

The message is clear: sustainability is not a burden. It’s an opportunity to farm smarter, grow stronger and build a legacy that will endure for decades to come.