Extreme weather hitting South Africa’s farmers
South African commercial corn farmers plan to cut plantings to the smallest area since 2019, squeezed by higher input costs and expectations of a drought during the nation’s summer months.
Farmers intend to plant corn on about 2.4 million hectares of land in the 2027 season, down 12.4% from the previous year and roughly 10% below the five-year average, the Crop Estimates Committee said in its first report on intentions to plant for the next season released on Tuesday.
White corn, a staple food in South Africa and across the region, will bear the brunt of the cut, with farmers planning to reduce plantings by 18.2%.
The area devoted to yellow corn, used mainly for animal feed, is expected to shrink by 3.1%, the committee said.
The ongoing conflict in the Middle East has caused prices of key agricultural inputs such as fertiliser and fuel to surge. Farmers are also facing pressure from a possible El Niño-induced drought.
These factors, among others, “influence farmers’ decisions about the planting season,” Wandile Sihlobo, chief economist at the Agricultural Business Chamber of South Africa, wrote in a note.
He also warned in a post on X on Monday that the looming drought could push up South African food-price inflation by the end of the first quarter of 2027. That could impact interest rates.
The central bank said in its latest Monetary Policy Review that it will act decisively to prevent higher fuel and El Niño-related food prices from lifting inflation expectations and feeding into wage-setting.
Loading ...