A FINANCIAL MODEL TO FUND LAND REDISTRIBUTION IN THE SUGAR INDUSTRY OF KWAZULU-NATAL

P. Simms

Agrekon, 1996, vol. 35, issue 4

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.

Keywords: Agricultural Finance; Crop Production/Industries; Land Economics/Use (search for similar items in EconPapers)
Date: 1996
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:agreko:267978

DOI: 10.22004/ag.econ.267978

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