Abstracts

35 farmers. Commercial farmers are, naturally, less risky investments and may be able to offer collateral to make their credit application more appealing. They often are involved in the fund disbursement process and therefore have an unfair advantage in determining who gets access to limited financial resources (Mtombeni et al., 2019). Small-scale farmers often do not have the luxury to wait through a months-long review and disbursement process even once awarded credit. And while financial institutions may be more likely to provide a one-time grant to a small-scale farmer, since this lending strategy is less risky and requires less accountability, smallholders often need more long-term forms of capital and investments to make meaningful impact. This is because small-scale farmers might not have the existing infrastructure that commercial farms do, might own less land, and therefore might be more vulnerable to extreme weather events and climate change. South Africa has an opportunity to make changes in its funding landscape, the impacts of which could be tremendous. With increased government funding and coordinated cooperation with agriculturally based nongovernmental organizations, the Land Bank would be able to make riskier, earlier-stage investments in smallholder farmers. Such an effort would provide the lender not only with the capacity to offer easier access to credit for smaller farmers but also the ability to increase technical and educational support for their borrowers. This nonfinancial support ultimately benefits both farmer and lender, with the lender likely feeling more secure in its investment and ability to maintain accountability. Supporting small- scale farmers is, in actuality, one of the most productive investments a financial institution can make because of its wide-ranging influence across all parts of the country. With a 27% national unemployment rate and a youth unemployment rate of 55%, providing farmers with access to credit has the potential for these farmers to grow, hire more workers, and expand their food production capabilities. The Land Bank can play a role in ensuring food security in South Africa as the country enters a critical next decade in terms of both population growth and anticipated impacts of climate change. As farmers adapt to new weather patterns and changing seasons, financial support will be necessary to complete these transitions effectively and feed a growing South African population. Financial institutions have an opportunity to effect social change, too. Most of South Africa’s small-scale farmers are black, and most of its corporate farmers are white, with the latter owning 73% of the land in South Africa despite comprising just 10% of the country’s total population (Crowley, 2017). Opening up access to credit for small- scale farmers will work to provide business and expansion opportunities to a marginalized group and thus work toward achieving social goals of the nation. Conclusion South Africa is vulnerable to the threats expected to be brought by climate change to issues of food security and farming. With household food security and poverty already a concern, the growing population and decrease in available arable land will pose challenges to South Africa. When factoring in changes to the dispersion of precipitation, hotter temperatures, and a potential for crop yields to suffer, the average farmer in South Africa is facing an uncertain future. Despite these threats, strategies, both in farming practices and in the larger financial sector, are available to mitigate the impacts of climate change and foster a profitable smallholder agricultural sector and a food secure nation at the household level. Inter- cropping with different but complementary plants and implementing efficient irrigation measures that nourish the plants but avoid wasting water can enhance productivity. Efficiency in general will need to be a theme for the smallholder South African farmer, both with livestock, where farmers typically make more profit, and in crop production. Providing a protected environment, in addition to adequate rangeland, will help maintain the health of a farmer’s livestock. There also is space for the government-run Land Bank to provide much- needed access to credit for smallholder farmers. In order for farmers to gain access to capital— seeds, equipment, sheds, and irrigation—and