Blended Finance Scheme

A DALRRD and Land Bank instrument combining a conditional non-repayable grant with a loan. Smallholders may receive up to 60% of the blended amount as grant. Requires at least 20 of 50 points on the Economic Benefits Criteria scorecard, and the grant cannot be approved standalone.

Commission and agent levy

The deduction taken from produce sold through a fresh produce market: 5% market commission plus a negotiable agent levy of up to 7.5%. Modelled here at a combined 12.0%.

Cropping intensity

Crops harvested from a hectare in a year. Rises from 1.4 to 1.8 on open land across the plan, adding 29% of output from the same land and drip.

Direct-channel premium

The price advantage earned on produce sold outside the market floor, rising from 6.0% to 10.0% of market-equivalent value. Earned by reliable supply over seasons rather than negotiated.

GLOBALG.A.P.

An international farm assurance standard covering food safety, traceability, worker welfare and environmental management. The condition of supplying formal retailers and processors.

Gross margin per hectare

Net revenue less direct production costs, divided by hectares. The number this business is managed on and the number break-even is calculated from.

Growing crops

Crops in the ground, carried on the balance sheet at accumulated input cost and released to the income statement on harvest.

Market-equivalent value

The crop valued at fresh produce market prices, before the direct-channel premium and before commission. The common basis on which all channels are compared.

Pack-out rate

Marketable tonnes as a share of tonnes harvested. Everything below grade is cost already incurred and revenue never earned.

Section 20 limitation

The South African tax rule capping the set-off of assessed losses at the higher of R1 million or 80% of taxable income. It is why R90 000 of tax arises in Year 5 despite R1.40 million of losses remaining.

Water use authorisation

The right to take water for irrigation under the National Water Act — existing lawful use, a general authorisation or a full licence depending on volume and source. A gate, not a formality.

Winter production window

May to August, when Highveld and Free State supply thins out from frost and Limpopo continues producing into a short market. The commercial thesis of the location.