Recent political transformation in South Africa has laid the basis for significant socioeconomic change. One area in which the greatest socioeconomic disparities are discernable is the agricultural sector and rural development in general. Through the medium of a case study of the Eastern Cape province, the obstacles and opportunities facing the two predominant farming groups —emerging black small-scale farmers and white commercial farmers — are examined. The paper concludes with an examination of the economic potential of the former ‘white' areas to sustain the resettlement of people previously excluded from that land market on racial grounds.