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

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.


Issue Date:
1996-12
Publication Type:
Journal Article
Record Identifier:
http://ageconsearch.umn.edu/record/267978
ISSN:
0303-1853
Language:
English
Published in:
Agrekon, Volume 35, Issue 4
Page range:
252-255




 Record created 2018-02-07, last modified 2018-04-02

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