Despite representing over 90% of farming households, small-scale farmers in South Africa contribute to just 5% of the marketed output. This gap shows that while millions of South Africans rely on farming for survival, most don’t have the infrastructure or financial support to produce for the formal market. 

For anyone working in policy, investment or agritech, these numbers spotlight untapped potential. They reveal where support, infrastructure and market opportunities are most urgently needed and highlight where the potential is.

The answer is not straightforward and depends on how “small-scale farmer” is defined. Definitions and survey coverage differ, and that is why reported figures vary. But here’s the real deal:

An estimate of small-scale farmers is 2 – 2.5 million households.

Having a clear, current number is so valuable because it allows policymakers, investors and service providers to target support where it’s most needed, measure progress over time and design interventions that can truly unlock the economic and food-security potential of South Africa’s small-scale sector.

Most smallholders farm primarily for their own consumption:

In total, only about 12% of smallholders sell any produce, which equals roughly 270’000 households. This highlights the untapped potential for market participation if these farmers had the right support. 

Crop breakdown:

Most production is focused on self-sustainability, with very few small-scale farmers producing beyond the household needs. 

Regional differences, suitable climates and historical land distribution play a role too. KwaZulu-Natal (22.3%), Limpopo (21.1%) and Eastern Cape (19.6%), which together account for 63% of all smallholder farmers. 

For most smallholder households, farming accounts for a very small income, if any. Research suggests that less than a third of their total earnings actually come from farming. Many families rely on social grants to make ends meet, and the crops or livestock they produce barely generate any additional income. 

Low productivity, limited access to markets, the size of their land and climate contribute to keeping these farmers trapped in poverty. These are all structural barriers that prevent their farms from becoming a source of financial security.

The number of small-scale farmers who participate in any form of formal market is extremely low:

This represents a huge untapped potential. With access to markets, finance, technology and training, smallholders could increase yields, boost incomes and strengthen food security.

Industries ranging from agritech to retail, logistics and finance could all benefit from seeing these farmers succeed. Still, with fragmented policies, scarce investment and long-standing neglect, many small-scale farmers continue to struggle.

Government initiatives like the Agriculture and Agro-processing Master Plan (AAMP) and the National Development Plan (NDP) aim to:

Success will depend on finance, infrastructure and structural reforms. Achieving these goals could unlock the potential of the 2.4 million smallholders, enabling them to produce more food, earn higher incomes, strengthen rural economies and enter formal supply chains, turning a historically underserved majority into a cornerstone of South Africa’s agricultural growth.

Supporting small-scale farmers is not charity; it’s smart economics. Empowering them could transform supply chains, stimulate rural economies and create lasting national impact. The opportunity is enormous, and action is overdue.

This post first appeared in our March ‘26 edition on Adebt small business debt collection.

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