Gov't tightens farmer subsidy rules, adds insurance
Mpho Mokwape | Wednesday November 26, 2025 06:00
Instead of cutting help to farmers, the new model will reportedly aim to improve the system's efficiency, reduce costs, and deliver inputs more reliably during the 2025–2026 season.
Acting Minister of Lands and Agriculture Dr Edwin Dikoloti told Parliament recently that the old subsidy structure had reached a breaking point.
'It had become unsustainable because it allowed waste, created room for abuse, and made it difficult for officials to manage the programme,' he said.
According to Dikoloti, the only way to save the scheme was to rebuild it so it could operate within the country’s resources.
The updated approach keeps support in place for small-scale farmers, but it no longer gives automatic benefits; instead, farmers will get inputs through a new, simpler method that the ministry believes will block leakages and stop the confusion that previously slowed delivery.
He explained that Crop Management Units will follow clearer steps, and officers will have stronger oversight duties.
Dikoloti, however, assured the farmers that the expected changes are not meant to reduce help, but to make sure that whatever help the government offers actually reaches the intended farmers.
'One of the most important changes is the addition of insurance for households using the Lemang Dijo Facility under the Agricultural Credit Guarantee Scheme. In past seasons, many families lost crops to droughts, floods, or other climate risks and were left without a safety net,' the acting minister stated.
He said that, as a result, this forced the government to step in with emergency funds almost every year, pointing out that the new insurance plan aims to change that pattern. Dikoloti also noted that it is designed to give farmers predictable support so they can recover faster when natural disasters hit, whilst also reducing the pressure on public budgets.
'The ministry also examined seed varieties and prices before finalising the new model, and we found that some seed types were not performing well, whilst others did not match the country’s nutrition and food-security priorities. As a result, seed choices and costs have been adjusted to promote better harvests and align production with national needs,' said Dikoloti.
He explained that the goal is to ensure farmers grow crops that are both productive and important for food security. Moreover, new rules have been introduced to avoid the confusion that affected the old structure, and responsibilities have now been organised into three clear groups: government, suppliers, and farmers.
The acting minister said the division will remove overlaps and make it easier to know who is responsible when problems arise.
'Under the new system, each group has specific tasks to carry out, which should help improve planning, delivery, and monitoring,' he said.
Meanwhile, farmers are expected to start collecting their inputs on November 24, 2025.
Dikoloti noted that the government will continue watching how the system works throughout the season, and if new problems appear, the ministry will make further changes, but only within the limits of existing government rules and available funds.
By keeping the core support in place whilst tightening the way it is delivered, the ministry hopes to protect the subsidy programme from collapse.
In conclusion, Dikoloti said the new structure is meant to keep farmers farming, reduce unnecessary spending, and build a system that can stand longer than the one it replaces.