Captain Adele Myburgh said Terre Blanche, 69, was attacked by a man and minor who worked for him after they allegedly had an argument over unpaid wages around 6pm.
"Mr Terreblanche's body was found on the bed with facial and head injuries. There was a panga on him and knobkerrie next to the bed.
"A 21-year-old man and 15-year-old boy were arrested and charged for his murder. The two told the police that the argument ensued because they were not paid for the work they did on the farm," she said.
Myburgh said Terreblanche was alone with the two workers at the time of the attack. She said the two would appear on charges of murder in court soon.
The Democratic Alliance in the North West expressed its "outrage and concern" at Terre Blanche's murder. "This happened in a province where racial tension in the rural farming community is increasingly being fuelled by irresponsible racist utterances by the leader of the ANCYL Leader Julius Malema and the North West Cosatu secretary Solly Pheto," said DA MP Juanita Terblanche.
She said the DA did not share Terre Blanche's political conviction but an attack of this nature could be regarded as an attack on the diverse components of the South African democracy.
North West MEC for Public Safety Howard Yawa reacted with shock at the news of Terre Blanche's death and appealed for calm in the province.
Yawa condemned the "callous murder in the strongest terms possible" and also called to the people to allow the law to take its course.