Small grain farmers across South Africa are facing mounting financial pressure as fertiliser, fuel, and other input costs continue to climb, threatening the sustainability of small and medium-sized operations.
Speaking at the Grain SA Congress 2026 in Bothaville, Minister of Agriculture, John Steenhuisen, highlighted the growing burden on producers. Fertiliser alone now accounts for 35% to 50% of production costs, depending on the region and yield targets, while fuel comprises roughly 12% to 18%.
“These rising input costs are not just numbers on paper, they directly affect the livelihoods of small-scale farmers who have limited margins to begin with,” said Steenhuisen.
South Africa imports over 80% of its fertiliser, exposing local producers to global supply shocks and exchange rate fluctuations.
In the North West, fertiliser costs for maize production range from R3,300 per hectare for lower yield targets to nearly R6,900 per hectare for higher yields. In the Eastern Free State, costs can reach R8,900 per hectare, depending on fertiliser type and crop plans. Diesel prices are also expected to rise by about R4.40 per litre in April, adding further strain.
Local farmers are feeling the squeeze
“Last season, I had to cut back on fertiliser to stay within budget, but that also meant lower yields,” said Thembani Tshirwa, a small maize farmer from the Limpopo.
“Fuel costs are rising too, and every kilometre our trucks drive to the silo eats into our already small profits. It’s becoming harder to make ends meet.”
Grain SA also highlighted the severity of the broader financial impact in its latest report. In many cases, farm incomes have declined by close to 50% compared to a year ago, while input costs, financing expenses and production risks remain stubbornly high.
Regional challenges amplify pressure. In the Southern Cape, winter grain producers face extreme drought and water restrictions.
“Even where average yields are reported, financial pressure remains intense because input costs stay high while product prices do not provide sufficient relief,” Grain SA warned in a report.
Economic pressures across the country
Although summer grain crops are generally fair to good, Grain SA warns the real crisis is economic. Farmers face low grain prices rising input costs mechanisation expenses and replanting after water damage.
“There are places where crops look promising but producers know a good looking crop where the numbers do not add up is not a sustainable crop,” said Richard Krige, chairperson of Grain SA.
Maize prices are down by 22% year-on-year while total maize input costs have risen by around 19%.
Food security and policy needs
Grain SA emphasises that local grain production is central to food security and rural economic stability.
“The message from the fields is clear producers cannot rely only on hoping for a good season they must also be able to survive the season financially. Without a more realistic relationship between prices and costs even good production conditions become insufficient.”
Lower maize prices provide some relief for consumers and downstream industries through cheaper feed but the same price environment is devastating for producers.
“While consumers may experience short term relief it is critical to recognise that grain producers are under severe economic pressure. Protecting their sustainability is essential to safeguarding South Africa’s long term food security,” Grain SA warned.
Industry analysts say the pressure on small farmers is acute
“Small grain producers are the most vulnerable in times of global supply volatility,” said Prof Pieter Swanepoel, an agronomist from Stellenbosch University.
“Large commercial farms can hedge or absorb some of these costs, but smaller operators often have to choose between reducing inputs, which affects yields, or taking on risky debt.”
The impact of these rising costs is already being felt on the ground. Many small-scale farmers report tighter cash flows, delayed purchases of inputs, and difficulty meeting loan repayments, which could threaten the long-term viability of their operations.
Steenhuisen stressed that predictable policy, efficient administration, and functional infrastructure are essential for giving small farmers the confidence to continue producing.
“Food security ultimately rests on farm profitability. If small producers cannot operate viable businesses, the entire food system becomes fragile,” he said.
With global markets remaining volatile and input costs unlikely to ease soon, small grain farmers will need to navigate a challenging landscape in the coming planting season. For many, access to markets, policy clarity, and financial support will be key to surviving amid rising costs.
