Farm businesses urged to prepare as El Niño risks mount

News Changemakers Lifestyle Farmer’s Inside Track Food for Thought No Result View All Result News Changemakers Lifestyle Farmer’s Inside Track Food for Thought No Result View All Result No Result View All Result in Advertorial Farm businesses urged to prepare as El Niño risks mount by Ivor Price 10th November 2026 Kudzayi Mazikana, head of sustainability, and Daneel Rossouw, head of sales for agriculture at Nedbank Business and Commercial Banking, advocate for early financial planning and climate resilience ahead of potential El Niño challenges. Photo: Supplied/Food For Mzansi

Share on TwitterShare on WhatsApp With hotter, drier conditions threatening production, Nedbank urges farmers to plan ahead, protect cash flow and engage with financiers before the pressure hits. South African farmers are being urged to prepare for the potential impact of a strong El Niño, which could result in lower crop yields, livestock losses and mounting financial pressure.

Speaking on the latest episode of Farmer’s Inside Track, Food For Mzansi’s podcast, Kudzayi Mazikana, head of sustainability at Nedbank Business and Commercial Banking, and Daneel Rossouw, head of sales for agriculture at Nedbank Business and Commercial Banking, highlighted the importance of early planning and climate resilience as producers prepare for a potentially challenging season.

The conversation comes as the agricultural sector reflects on the Sustainability & ESG Africa Conference and looks towards the next phase of the Climate Smart Ambassador project, alongside COP31, the 31st United Nations Climate Change Conference.

For Mazikana, the looming climate risk presents an opportunity for farmers to assess their preparedness, strengthen their businesses and start engaging with their financiers before conditions deteriorate.

“There’s an expectation that there may be a decrease in yields for farmers. What that also means is that there could also be a decrease in their cash flows.”

The consequences extend beyond individual farming businesses, with reduced production potentially placing additional pressure on South Africa’s food security.

Mazikana said farmers should use the time available to assess how they can prepare for the coming season and engage with banks and other financiers about the support they may need.

Rossouw said the risks associated with El Niño extend beyond South Africa, affecting countries across sub-Saharan Africa and other parts of the Southern Hemisphere. Disruptions to agricultural production could also have wider implications for global supply chains.

Looking back at the 2015-2016 El Niño, he pointed to significant declines in maize production as a warning of what another severe event could bring.

However, he noted that South Africa is entering the current season in a better position than it was a decade ago, thanks to improved rainfall and stronger soil moisture reserves.

“Definitely, in terms of lower production, especially in the summer rainfall areas, more in the dryland production area, we can expect some livestock losses if it’s really severe, and degraded pastures,” he said.

The Free State, North West, Mpumalanga and Limpopo were highlighted as provinces potentially most exposed to hotter, drier conditions.

These provinces are central to South Africa’s maize, oilseed and livestock production, making their performance particularly important for national food security.

Beyond the threat to production, Rossouw warned that rising input costs and farm debt could leave some businesses vulnerable. Increased reliance on short-term production finance could add to the strain, particularly if farmers experience lower yields or unexpected losses.

Lower grain stock levels could also contribute to market volatility and upward pressure on food prices, with consequences for consumers already facing financial pressure.

Although the time available for implementing longer-term changes may be limited, Rossouw said farmers can still take practical steps to reduce their exposure.

Planting dates and crop choices may need to be adjusted according to local soil moisture conditions, farm location, commodity prices and market expectations.

He also noted the importance of conserving soil moisture and diversifying crops as part of longer-term climate adaptation.

For livestock producers, particularly those operating in extensive grazing areas, securing adequate water reserves and animal feed well ahead of time could prove critical.

Rossouw also encouraged farmers to make better use of early-warning systems and available climate data to inform their decisions.

On the financial side, he urged producers to review their short-term capital requirements, insurance coverage and available cash reserves.

The central message was that preparation needs to extend beyond the farm itself. Farmers should assess their financial position and identify potential weaknesses before the effects of adverse weather begin to affect their operations.

Climate resilience is not only about protecting crops and livestock. It is also about ensuring a farming business can withstand disruption without falling into financial distress.

Mazikana said resilient farming operations cannot necessarily avoid the effects of a crisis, but preparation can limit the damage.

“A resilient farm … is a farming operation that, when a crisis does occur, there most likely will be an impact on the farm. But what farmers can do by preparing upfront for it is that the disruption that occurs to the farming operation is limited,” he explained.

Waiting until a farm is already experiencing cash-flow difficulties can make it considerably harder to secure the finance needed to recover.

Mazikana urged farmers to start discussions with their banks while their businesses remain financially stable, rather than waiting until they need urgent assistance.

Rossouw echoed this advice, emphasising proactive cash-flow management and regular engagement with financiers, including agricultural co-operatives where relevant.

He recommended that farmers develop detailed budgets, monitor cash flow closely and anticipate periods of surplus and shortfall. Maintaining adequate cash reserves and establishing access to credit can help businesses manage fluctuations during a difficult season.

Early engagement can help farmers and their financiers assess potential funding requirements and explore appropriate solutions, subject to the bank’s normal credit assessment process.

Rossouw cautioned that restructuring becomes more complicated once a business is already distressed, making early conversations particularly important.

Insurance is another consideration, especially for farmers in summer rainfall regions who may be exposed to droughts, floods and pests. While the timing of the planting season may limit some options, he encouraged producers to explore their available cover and discuss their needs with the relevant providers.

While immediate preparations are important, both Nedbank representatives stressed that climate resilience requires a longer-term approach.

For Mazikana, preparation should begin well before a crisis arrives. Farmers who anticipate potential disruptions and plan accordingly are better positioned to protect their cash flow and maintain their operations when conditions deteriorate.

That means treating resilience as an ongoing business priority rather than a once-off response to a weather forecast.

Rossouw said Nedbank’s approach includes engaging more frequently with farmers to understand their challenges and ensuring its teams are equipped to have meaningful conversations with agricultural clients.

The bank also aims to share insights drawn from its involvement across different agricultural value chains, helping farmers identify opportunities and make more informed business decisions.

Existing financing options can support some of these investments, including water-related infrastructure and equipment upgrades.

Rossouw said the objective is to move beyond a transactional relationship focused solely on providing finance.

“We want to also be a partner with our clients. We want to walk the journey with them,” he said.

Nedbank’s support for climate-smart agriculture also includes its involvement in the Veeplaas Climate-Smart Ambassador project, which has focused on practical farming approaches and sharing knowledge with producers.Rossouw said the bank has partnered with Plaas Media and Veeplaas on the initiative since its inception, supporting four annual projects and associated farmers’ days over the past four years.

The programme has placed particular emphasis on extensive livestock production, including grazing management, veld management, alien vegetation clearing and making better use of existing natural resources.

Water catchment and the retention of soil moisture in the veld have also been important themes.

The latest farmers’ day attracted just over 100 participants from across the country, extending the initiative’s reach beyond the area where the winning farmer was based.

For Rossouw, these practical interventions are especially relevant as producers in extensive livestock areas prepare for the possibility of drought.

The broader challenge is to ensure that farmers have access not only to the financial tools they need, but also to the knowledge and practical support that can help them adapt.

As South African agriculture faces mounting climate uncertainty, the message from Nedbank is clear: farmers cannot control the weather, but they can take steps to reduce the risks it poses to their businesses.

Early planning, sound financial management, appropriate insurance and sustained investment in climate resilience could make a critical difference when conditions become difficult.

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Ivor Price is a multi-award-winning journalist and co-founder of Food For Mzansi.

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