Why South African farmers should be investing offshore

South Africa’s agricultural export market continues to grow, cementing the country’s position as a major player on the global field. In the first quarter of 2025, agricultural exports reached US$3.36 billion, a 10% increase on the same period in 2024. In Q2, exports to the United States alone reached US$161 million – a surge of 26% compared with 2024 – despite tariff challenges.

These figures highlight both the potential and the complexity of running a modern South African farm. While producing high-quality goods is one challenge, structuring a business to capture the benefits of international markets is another. Farmers are increasingly exploring offshore structures as a tool to support growth, manage risk, and plan for the long-term.

Brandon Voges, Business Development Manager at Sovereign Trust (SA), explains: “South African farmers are resilient by nature, but being global suppliers brings new considerations. Offshore structures are no longer just about tax efficiency. They provide a framework for reinvesting profits, accessing international finance, and managing foreign exchange exposure.”

When done correctly, offshore structuring can help farmers protect export income, access capital to expand distribution networks, and build succession plans that secure the family legacy for generations. Voges emphasises the importance of integrating these structures with the realities of South African farming: “Seasonal cash flows, regulatory requirements, and family dynamics all play a role. Offshore planning that ignores these realities simply will not work.”

Compliance is a critical component

With increasing scrutiny from SARS and international regulators, offshore structures must be transparent and aligned with both South African and foreign laws. Voges notes that professional guidance ensures that farmers can grow globally without exposing themselves to risk: “A well-structured plan allows farmers to operate with confidence, knowing they are meeting every regulatory requirement while also positioning their businesses for long-term success.”

Family wealth and legacy planning also benefit

For many farming families, the business is their most valuable asset. Offshore structures can safeguard their wealth, support estate planning, and provide investment opportunities beyond domestic borders. “It’s about giving families peace of mind,” says Voges. “They can ensure that the assets they have worked so hard to grow are protected and can continue to generate value for future generations.”

The broader financial ecosystem matters too

Effective offshore planning requires partners who understand the rhythm of farming, from timing and cash flow cycles to cross-border financing and forex management. Voges concludes by saying that offshore success is not about a single product or service. Rather, it is about building a complete framework that allows South African farmers to thrive beyond borders.

The ability to combine local agricultural insights with international expertise, and offer tailored solutions that align financial strategy, tax compliance, and wealth management, are the key to creating structures that support opportunity, compliance, and long-term security. By working with professionals who understand both the agricultural mindset and global financial markets, like those at Sovereign, farmers can expand confidently and sustainably.