An investigation on the motivational feattures influence on technical efficiency and profitability of smallholder irrigated crop farmers in Kwa-Nobuhle, Eastern Cape province of South Africa
- Authors: Funde, Sibongile
- Date: 2017
- Subjects: Crops -- South Africa -- Eastern Cape -- Marketing Irrigation farming -- South Africa -- Eastern Cape Agriculture -- Economic aspects -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MSc
- Identifier: http://hdl.handle.net/10353/11917 , vital:39118
- Description: Substantial impact and the importance of agriculture in the economies of the developing countries is increasingly acknowledged. Agriculture generally has shown to remain crucial to economic development. It has been noted that agricultural growth plays a pivotal role in poverty reduction and employment creation. Due to the potential of the smallholder sector to alleviate poverty and minimize unemployment rate leading to the country’s economic growth, enormous development programs have in the past and continues to be implemented by South African government. Programs such as land-based development strategies including agriculture, extension services, improved technologies including irrigation establishment, revitalization and rehabilitation, water rights legislation and financial support. However, the current state of smallholder low-agricultural productivity growth trends raises concerns on what other fundamental development strategies to implement in order to enhance agricultural productivity growth. Hence, this study seeks to address the impact of social farming on agricultural productivity by investigating smallholder farmer’s motivational features. Motivational features regarded are as important determinants of success, modify behaviour, serve to mobilize and direct energy into actions. Given the importance of motivational features and their formation in social interaction, the objective of the study was to investigate motivational features of smallholder farmers with regard to expanding irrigation land, determine technical efficiency of smallholder farmers as well as their profitability generation capability. A multistage sampling method was used that involved using purposive sampling, simple random sampling was adopted where three smallholder agriculture projects using irrigation methods to farm were selected and by use of snowball sampling the study ended up collecting data from a total of 124 respondents. The sample was chosen on the basis that smallholder farmers hold attributes that were crucial for execution of this research. The study proceeded by conducting face-to face interviews of smallholder farmers, focus groups and key informant using interview schedules and a questionnaire consisting both open and close-ended questions. Data were analysed using different methods. Firstly, data were analysed descriptively to get a deeper understanding of smallholder farmer’s socio-economic characteristics as well as their motivational features. Secondly, data were analysed statistically to determine Technical Efficiency (TE) of smallholder farmers using both Data Envelopment Analysis (DEA) and Stochastic Frontier Analysis (SFA). Lastly, Gross Margin Analysis was used to measure farmer’s profitability. Results show that smallholder farmers have a range of motivational features that incorporates both productive and non-productive goals. The study made use of twenty-five goals obtained from literature studies and categorised them into six motivational feature types namely; outcome based, process focused/extrinsic, performance, achievement, intrinsic/self-efficacy, and household livelihood strategies. Smallholder female and male outcome based motivations were found to be statistically significant at 5percent, while process focused/extrinsic, performance, achievement, intrinsic/self-efficacy and household livelihood strategies motivations between them were found not to be statistically significant, which means that smallholder female and male motivations are not different and that both farmers consider such motivations at the same level. Technical Efficiency (TE) was measured using DEA method and was found to be 0.70, which is different from the TE obtained using SFA that was 0.47. Three dominant crops were produced, namely potatoes, cabbage and spinach. Cabbage crop was the most produced, had the highest gross margin results with a commercialization ratio of 0.33percent as compared to potatoes and spinach. Which indicates that cabbage is a high value crop to smallholder farmers of Kwa-Nobuhle area. In view of the research findings, it was concluded that motivational features of smallholder farmers were positively related to technical efficiency which implies that the more motivated farmers become, the higher their technical efficiency, hence their potential to expand land under irrigation. Cabbage production was high and more profitable than potatoes and spinach production. Recommendations include that government, NGO’s, private sector and institution need to promote the use of improved technologies, agricultural training and take smallholder farmer’s motivational features into account in development programmes. These actions are necessary to increase irrigated farming, overcome low-performance levels and enhance profitability of smallholder farmers, and ultimately achieve poverty alleviation and improve employment opportunities in the rural areas.
- Full Text:
- Date Issued: 2017
- Authors: Funde, Sibongile
- Date: 2017
- Subjects: Crops -- South Africa -- Eastern Cape -- Marketing Irrigation farming -- South Africa -- Eastern Cape Agriculture -- Economic aspects -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MSc
- Identifier: http://hdl.handle.net/10353/11917 , vital:39118
- Description: Substantial impact and the importance of agriculture in the economies of the developing countries is increasingly acknowledged. Agriculture generally has shown to remain crucial to economic development. It has been noted that agricultural growth plays a pivotal role in poverty reduction and employment creation. Due to the potential of the smallholder sector to alleviate poverty and minimize unemployment rate leading to the country’s economic growth, enormous development programs have in the past and continues to be implemented by South African government. Programs such as land-based development strategies including agriculture, extension services, improved technologies including irrigation establishment, revitalization and rehabilitation, water rights legislation and financial support. However, the current state of smallholder low-agricultural productivity growth trends raises concerns on what other fundamental development strategies to implement in order to enhance agricultural productivity growth. Hence, this study seeks to address the impact of social farming on agricultural productivity by investigating smallholder farmer’s motivational features. Motivational features regarded are as important determinants of success, modify behaviour, serve to mobilize and direct energy into actions. Given the importance of motivational features and their formation in social interaction, the objective of the study was to investigate motivational features of smallholder farmers with regard to expanding irrigation land, determine technical efficiency of smallholder farmers as well as their profitability generation capability. A multistage sampling method was used that involved using purposive sampling, simple random sampling was adopted where three smallholder agriculture projects using irrigation methods to farm were selected and by use of snowball sampling the study ended up collecting data from a total of 124 respondents. The sample was chosen on the basis that smallholder farmers hold attributes that were crucial for execution of this research. The study proceeded by conducting face-to face interviews of smallholder farmers, focus groups and key informant using interview schedules and a questionnaire consisting both open and close-ended questions. Data were analysed using different methods. Firstly, data were analysed descriptively to get a deeper understanding of smallholder farmer’s socio-economic characteristics as well as their motivational features. Secondly, data were analysed statistically to determine Technical Efficiency (TE) of smallholder farmers using both Data Envelopment Analysis (DEA) and Stochastic Frontier Analysis (SFA). Lastly, Gross Margin Analysis was used to measure farmer’s profitability. Results show that smallholder farmers have a range of motivational features that incorporates both productive and non-productive goals. The study made use of twenty-five goals obtained from literature studies and categorised them into six motivational feature types namely; outcome based, process focused/extrinsic, performance, achievement, intrinsic/self-efficacy, and household livelihood strategies. Smallholder female and male outcome based motivations were found to be statistically significant at 5percent, while process focused/extrinsic, performance, achievement, intrinsic/self-efficacy and household livelihood strategies motivations between them were found not to be statistically significant, which means that smallholder female and male motivations are not different and that both farmers consider such motivations at the same level. Technical Efficiency (TE) was measured using DEA method and was found to be 0.70, which is different from the TE obtained using SFA that was 0.47. Three dominant crops were produced, namely potatoes, cabbage and spinach. Cabbage crop was the most produced, had the highest gross margin results with a commercialization ratio of 0.33percent as compared to potatoes and spinach. Which indicates that cabbage is a high value crop to smallholder farmers of Kwa-Nobuhle area. In view of the research findings, it was concluded that motivational features of smallholder farmers were positively related to technical efficiency which implies that the more motivated farmers become, the higher their technical efficiency, hence their potential to expand land under irrigation. Cabbage production was high and more profitable than potatoes and spinach production. Recommendations include that government, NGO’s, private sector and institution need to promote the use of improved technologies, agricultural training and take smallholder farmer’s motivational features into account in development programmes. These actions are necessary to increase irrigated farming, overcome low-performance levels and enhance profitability of smallholder farmers, and ultimately achieve poverty alleviation and improve employment opportunities in the rural areas.
- Full Text:
- Date Issued: 2017
Analysis of the impact of Smallholder Irrigation Schemes on the choice of rural livelihood strategy and household food security in Eastern Cape
- Authors: Christian, Mzuyanda
- Date: 2017
- Subjects: Irrigation -- South Africa -- Eastern Cape Farms, Small -- South Africa -- Eastern Cape Food security -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Doctoral , PhD
- Identifier: http://hdl.handle.net/10353/4813 , vital:28526
- Description: Since the end of Apartheid, the South African government has invested substantially in smallholder irrigation schemes, particularly in the former homeland areas. One of the primary goals for establishment of these schemes was to solve food security problems. Sadly, these efforts have not produced the desired results, and poverty has deepened. The question that can be asked is: What is it that makes South African smallholder agricultural sector seemingly impervious to the interventions that government has made in targeting smallholder farmers since the dawn of democracy in 1994? In order to address such a question, a set of structured questionnaires was used to interview 100 smallholder irrigators and 100 non-irrigators using multistage stratified random sampling technique in the Amatole, Chris Hani and OR Tambo District municipalities. Demographic and socio-economic characteristics of smallholder irrigators and non-irrigators around Qamata, Pendu, Tyhefu, Merelles and Ntshongweni irrigation schemes were measured using descriptive statistics. Profitability between the two groups was measured using gross margin analysis (GM). The Probit model was used to determine the factors that affect smallholder farmer‘s choice of participation in irrigation schemes. The impact of irrigation participation on yields, crop sales and food security was estimated using the propensity score matching (PSM) technique. The impact of irrigation participation of smallholder farmer‘s choice of livelihood strategy was estimated using the multinomial regression model. The results showed that male respondents were dominant with a representation of 63 percent and average mean household size of 4 persons with the household head having spent at least 7 years at school. Farming was found to be the major (64 percent) occupation in the study area with an average income of R2 944.52 per cropping season. Both irrigating and non-irrigating smallholder farmers in the study area used improved, fertilizer and tractor for production. Overall, smallholder farmers spent 30.9 percent of their household income on food with irrigators‘food spending lower than those of non-irrigators. The gross margin analysis suggests that the irrigated farmers were in a better position to afford enough food in order to satisfy their household requirement. Findings from the Probit regression and Propensity Score Matching are consistent across the methods, indicating that irrigation participation has a positive influence on crop yields, income and consumption expenditure. Probit regression further showed that age, quality of land, access to credit, access to market, distance to the scheme and membership of another society/association have a positive impact on access and use of irrigation and are significant at p < 0.05 percent level. The Propensity Score Matching using Nearest Neighbour and Kernel Matching Methods of the outcome variables, total farm income and food consumption patterns, shows a positive and statistically significant result at p < 0.05 percent level. The nearest neighbour matching method shows that irrigators received higher farm income R2044.01 than non-irrigating farmers R622.12. The Average Treatment Effect on total food expenditure was negative both in the case of NNM and KM algorithms, indicating that participation in irrigation can decrease the expenditure levels on food from R933.30 to R926.70. This could be due to the fact that irrigating farmers produced enough for home consumption than non-irrigators. The multinomial regression model shows that irrigation participation influences smallholder farmers choice of livelihood strategy and these variables were statistically significant at p < 0.05 percent level. These results provide insights to address the question as to the appropriate development path for transition from homestead to irrigation. Continued support to smallholder farmers in the forms of funding, extension services and improved technologies is certainly needed to enhance food security.
- Full Text:
- Date Issued: 2017
- Authors: Christian, Mzuyanda
- Date: 2017
- Subjects: Irrigation -- South Africa -- Eastern Cape Farms, Small -- South Africa -- Eastern Cape Food security -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Doctoral , PhD
- Identifier: http://hdl.handle.net/10353/4813 , vital:28526
- Description: Since the end of Apartheid, the South African government has invested substantially in smallholder irrigation schemes, particularly in the former homeland areas. One of the primary goals for establishment of these schemes was to solve food security problems. Sadly, these efforts have not produced the desired results, and poverty has deepened. The question that can be asked is: What is it that makes South African smallholder agricultural sector seemingly impervious to the interventions that government has made in targeting smallholder farmers since the dawn of democracy in 1994? In order to address such a question, a set of structured questionnaires was used to interview 100 smallholder irrigators and 100 non-irrigators using multistage stratified random sampling technique in the Amatole, Chris Hani and OR Tambo District municipalities. Demographic and socio-economic characteristics of smallholder irrigators and non-irrigators around Qamata, Pendu, Tyhefu, Merelles and Ntshongweni irrigation schemes were measured using descriptive statistics. Profitability between the two groups was measured using gross margin analysis (GM). The Probit model was used to determine the factors that affect smallholder farmer‘s choice of participation in irrigation schemes. The impact of irrigation participation on yields, crop sales and food security was estimated using the propensity score matching (PSM) technique. The impact of irrigation participation of smallholder farmer‘s choice of livelihood strategy was estimated using the multinomial regression model. The results showed that male respondents were dominant with a representation of 63 percent and average mean household size of 4 persons with the household head having spent at least 7 years at school. Farming was found to be the major (64 percent) occupation in the study area with an average income of R2 944.52 per cropping season. Both irrigating and non-irrigating smallholder farmers in the study area used improved, fertilizer and tractor for production. Overall, smallholder farmers spent 30.9 percent of their household income on food with irrigators‘food spending lower than those of non-irrigators. The gross margin analysis suggests that the irrigated farmers were in a better position to afford enough food in order to satisfy their household requirement. Findings from the Probit regression and Propensity Score Matching are consistent across the methods, indicating that irrigation participation has a positive influence on crop yields, income and consumption expenditure. Probit regression further showed that age, quality of land, access to credit, access to market, distance to the scheme and membership of another society/association have a positive impact on access and use of irrigation and are significant at p < 0.05 percent level. The Propensity Score Matching using Nearest Neighbour and Kernel Matching Methods of the outcome variables, total farm income and food consumption patterns, shows a positive and statistically significant result at p < 0.05 percent level. The nearest neighbour matching method shows that irrigators received higher farm income R2044.01 than non-irrigating farmers R622.12. The Average Treatment Effect on total food expenditure was negative both in the case of NNM and KM algorithms, indicating that participation in irrigation can decrease the expenditure levels on food from R933.30 to R926.70. This could be due to the fact that irrigating farmers produced enough for home consumption than non-irrigators. The multinomial regression model shows that irrigation participation influences smallholder farmers choice of livelihood strategy and these variables were statistically significant at p < 0.05 percent level. These results provide insights to address the question as to the appropriate development path for transition from homestead to irrigation. Continued support to smallholder farmers in the forms of funding, extension services and improved technologies is certainly needed to enhance food security.
- Full Text:
- Date Issued: 2017
Choice of market channels by smallholder vegetable farmers in King Sabata Dalindyebo Municipality in the Eastern Cape province of South Africa
- Authors: Yokwana, Aphelele Lucia
- Date: 2017
- Subjects: Vegetables -- Marketing Farms, Small -- South Africa -- Eastern Cape Vegetable trade -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MAgric
- Identifier: http://hdl.handle.net/10353/11906 , vital:39117
- Description: The study investigates the choice of market channels by smallholder vegetable farmers in King Sabatha Dalindyebo Municipality, in the Eastern Cape Province of South Africa. Vegetables as a group of horticultural crops are important for their contribution as an income support to a large proportion of the rural households. However, enhancing vegetable farmers to reach markets and actively engage in the markets is a key challenge influencing vegetable production in South Africa. The perishable nature of vegetables demands effective marketing channels. The main objective of the study was to investigate factors affecting vegetable farmers’ choice of market channels in King Sabata Dalindyebo Municipality in the Eastern Cape Province. The study adopted a multistage stratified sampling method. Multi-stage sampling was done in which the first stage involved selecting respondents from the different wards in the King Sabata Dalindyebo Municipality. This was done through stratification by separating vegetable smallholder farmers and homesteads within that area (different villages within the area). This was followed by employing quota sampling through the different households and smallholder farmers within those areas in order to determine households and smallholder farmers that are able to provide the needed information concerning the choice of market channels. By stratified random sampling based on village, project membership and smallholder farmers, a sample of 110 heads of households was chosen for the study in eight different wards of KSD. The sampling for this study was based on a large sampling technique of n ≥ 30 as there is no information regarding the population of the total number of homesteads and smallholder farmers that are under each traditional leader (chief) in these study sites. This sample comprises homesteads and smallholder farmers that took part in vegetable production. A structured questionnaire together with field observations and measurements were adopted for obtaining information from household respondents. Descriptive statistics (percentages, means, frequency tables and figures) and a Multinomial logistic regression model have been used to analyze the data. From the Multinomial logistic regression results, farming experience is positively related to choice of farm gate market channel at 1percent level of significance. The age of vegetable farmers was positively related to the choice of direct to consumer market channel at 5percent significance level. The level of education of the vegetable farmers was positively related to the choice of direct to consumer market channel at 5percent significance level. Moreover, the results also showed that the inputs used are positively related to the choice of farm-gate as well as direct to consumer market channels at 5percent significance level. Similarly, means of transportation used and choice of marketing channel of the vegetable farmers are positively related at 1percent significance level at the direct to consumer choice of market channel. Furthermore, access to extension services indicated a positive relationship to the choice of market channel amongst the smallholder vegetable farmers for the direct to consumer at 5percent level of significance which is insignificant for that of the farm-gate. There is therefore, need for strong extension support in assisting the farmers to diversify their production, provide market information thereby enhancing production and opening up channels for market accessibility. This is seen to enhance rural households’ livelihood outcomes in agricultural production thereby improving the choice of market channels by smallholder vegetable farmers and alleviating poverty and improving food security. More so, the government and research institutes need to organize workshops and extension programs in famer’ training for more efficiency in their vegetable production and marketing.
- Full Text:
- Date Issued: 2017
- Authors: Yokwana, Aphelele Lucia
- Date: 2017
- Subjects: Vegetables -- Marketing Farms, Small -- South Africa -- Eastern Cape Vegetable trade -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MAgric
- Identifier: http://hdl.handle.net/10353/11906 , vital:39117
- Description: The study investigates the choice of market channels by smallholder vegetable farmers in King Sabatha Dalindyebo Municipality, in the Eastern Cape Province of South Africa. Vegetables as a group of horticultural crops are important for their contribution as an income support to a large proportion of the rural households. However, enhancing vegetable farmers to reach markets and actively engage in the markets is a key challenge influencing vegetable production in South Africa. The perishable nature of vegetables demands effective marketing channels. The main objective of the study was to investigate factors affecting vegetable farmers’ choice of market channels in King Sabata Dalindyebo Municipality in the Eastern Cape Province. The study adopted a multistage stratified sampling method. Multi-stage sampling was done in which the first stage involved selecting respondents from the different wards in the King Sabata Dalindyebo Municipality. This was done through stratification by separating vegetable smallholder farmers and homesteads within that area (different villages within the area). This was followed by employing quota sampling through the different households and smallholder farmers within those areas in order to determine households and smallholder farmers that are able to provide the needed information concerning the choice of market channels. By stratified random sampling based on village, project membership and smallholder farmers, a sample of 110 heads of households was chosen for the study in eight different wards of KSD. The sampling for this study was based on a large sampling technique of n ≥ 30 as there is no information regarding the population of the total number of homesteads and smallholder farmers that are under each traditional leader (chief) in these study sites. This sample comprises homesteads and smallholder farmers that took part in vegetable production. A structured questionnaire together with field observations and measurements were adopted for obtaining information from household respondents. Descriptive statistics (percentages, means, frequency tables and figures) and a Multinomial logistic regression model have been used to analyze the data. From the Multinomial logistic regression results, farming experience is positively related to choice of farm gate market channel at 1percent level of significance. The age of vegetable farmers was positively related to the choice of direct to consumer market channel at 5percent significance level. The level of education of the vegetable farmers was positively related to the choice of direct to consumer market channel at 5percent significance level. Moreover, the results also showed that the inputs used are positively related to the choice of farm-gate as well as direct to consumer market channels at 5percent significance level. Similarly, means of transportation used and choice of marketing channel of the vegetable farmers are positively related at 1percent significance level at the direct to consumer choice of market channel. Furthermore, access to extension services indicated a positive relationship to the choice of market channel amongst the smallholder vegetable farmers for the direct to consumer at 5percent level of significance which is insignificant for that of the farm-gate. There is therefore, need for strong extension support in assisting the farmers to diversify their production, provide market information thereby enhancing production and opening up channels for market accessibility. This is seen to enhance rural households’ livelihood outcomes in agricultural production thereby improving the choice of market channels by smallholder vegetable farmers and alleviating poverty and improving food security. More so, the government and research institutes need to organize workshops and extension programs in famer’ training for more efficiency in their vegetable production and marketing.
- Full Text:
- Date Issued: 2017
Cost and return analysis of smallholder organic crop farms in the Eastern Cape province of South Africa
- Authors: Akharume, Celestine Ohi
- Date: 2017
- Subjects: Farms, Small -- South Africa -- Eastern Cape Profit -- South Africa -- Eastern Cape Organic farming -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MAgric
- Identifier: http://hdl.handle.net/10353/13730 , vital:39703
- Description: Agriculture remains an influential sector in South Africa in terms of its contributions to economic development and poverty reduction, notably in the rural areas. These include providing sufficient and affordable food for the constantly increasing population, providing cheap food for the developing industrial labor force, providing employment and livelihoods and supplying raw materials to the country’s rising domestic industrial sector. Despite phenomenal progress in integrating smallholder farmers into the mainstream economy since democratic reforms in the country, deteriorating soil quality through poor agricultural practices, land erosion, acidification and concerns about production and productivity and compliance with food safety standards are beginning to loom high. Hence, organic farming is identified as one of the sustainable approaches to farming. It is also believed to guarantee substantial net gains and to promote sustainable natural resource management with the possibility of enhancing overall agricultural productivity. Notwithstanding, organic farming is still being perceived negatively in South Africa and there is shortage of empirical studies which focus on cost and return of smallholder organic crop farms. It is in this regard that the study therefore seeks to analyze cost and return of smallholder organic crop farms in the Eastern Cape Province to contribute to knowledge on the relative economic advantages of organic agriculture at the smallholder sector. Specifically, the study profiled the socioeconomic characteristics of smallholder organic crop farmers, determined costs and returns, and estimated profitability and factors that constrain profitability of the smallholder organic crop farms. The research design used in this study was cross-sectional where data were collected at a single point in time. A multi- stage random sampling technique was used to obtain primary data from one hundred and sixty smallholder organic crop farmers (160) with the aid of structured questionnaires. Primary data were collected on demographic and socioeconomic characteristics, variable costs and fixed costs, and returns from the organic crop farms. Data collected were analyzed by Statistical Package for Social Sciences (SPSS) and the descriptive and inferential statistics involved were mean, frequency proportion, gross margin and net income analysis as well as OLS regression analysis. The results of the descriptive analysis showed that the proportions of women involved in organic crop farming were higher than that of men and many of the farmers cultivated on less than 1.0ha. The analysis of the data also showed that smallholder organic crop farms are undoubtedly profitable farm business, with attractive net farm income and lower production costs. The findings further affirmed that factors such as household size, gender, farming experience, number of years in school, farm size, source of labor and access to credit affect profitability and net farm income. Therefore, government is advised to encourage the practice of organic farming by giving short-term loans to smallholder farmers, to enable them invest more in their organic crop farms. There is also need for government to organize workshops and lectures, educating and enlightening individual smallholder organic crop farmers on modern organic farming techniques to enhance profitability of smallholder organic crop farms.
- Full Text:
- Date Issued: 2017
- Authors: Akharume, Celestine Ohi
- Date: 2017
- Subjects: Farms, Small -- South Africa -- Eastern Cape Profit -- South Africa -- Eastern Cape Organic farming -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MAgric
- Identifier: http://hdl.handle.net/10353/13730 , vital:39703
- Description: Agriculture remains an influential sector in South Africa in terms of its contributions to economic development and poverty reduction, notably in the rural areas. These include providing sufficient and affordable food for the constantly increasing population, providing cheap food for the developing industrial labor force, providing employment and livelihoods and supplying raw materials to the country’s rising domestic industrial sector. Despite phenomenal progress in integrating smallholder farmers into the mainstream economy since democratic reforms in the country, deteriorating soil quality through poor agricultural practices, land erosion, acidification and concerns about production and productivity and compliance with food safety standards are beginning to loom high. Hence, organic farming is identified as one of the sustainable approaches to farming. It is also believed to guarantee substantial net gains and to promote sustainable natural resource management with the possibility of enhancing overall agricultural productivity. Notwithstanding, organic farming is still being perceived negatively in South Africa and there is shortage of empirical studies which focus on cost and return of smallholder organic crop farms. It is in this regard that the study therefore seeks to analyze cost and return of smallholder organic crop farms in the Eastern Cape Province to contribute to knowledge on the relative economic advantages of organic agriculture at the smallholder sector. Specifically, the study profiled the socioeconomic characteristics of smallholder organic crop farmers, determined costs and returns, and estimated profitability and factors that constrain profitability of the smallholder organic crop farms. The research design used in this study was cross-sectional where data were collected at a single point in time. A multi- stage random sampling technique was used to obtain primary data from one hundred and sixty smallholder organic crop farmers (160) with the aid of structured questionnaires. Primary data were collected on demographic and socioeconomic characteristics, variable costs and fixed costs, and returns from the organic crop farms. Data collected were analyzed by Statistical Package for Social Sciences (SPSS) and the descriptive and inferential statistics involved were mean, frequency proportion, gross margin and net income analysis as well as OLS regression analysis. The results of the descriptive analysis showed that the proportions of women involved in organic crop farming were higher than that of men and many of the farmers cultivated on less than 1.0ha. The analysis of the data also showed that smallholder organic crop farms are undoubtedly profitable farm business, with attractive net farm income and lower production costs. The findings further affirmed that factors such as household size, gender, farming experience, number of years in school, farm size, source of labor and access to credit affect profitability and net farm income. Therefore, government is advised to encourage the practice of organic farming by giving short-term loans to smallholder farmers, to enable them invest more in their organic crop farms. There is also need for government to organize workshops and lectures, educating and enlightening individual smallholder organic crop farmers on modern organic farming techniques to enhance profitability of smallholder organic crop farms.
- Full Text:
- Date Issued: 2017
Elicitation of risk preferences of smallholder irrigation farmers in the Eastern Cape Province of South Africa
- Authors: Modjadji, Mathlo Itumeleng
- Date: 2017
- Subjects: Irrigation farming -- South Africa -- Eastern Cape Risk-return relationships -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Doctoral , PhD
- Identifier: http://hdl.handle.net/10353/4846 , vital:28534
- Description: Although several studies have investigated commercial farmers’ risk preferences, there is still lack of information on the risk attitudes and risk preferences of smallholder farmers in South Africa. Risks associated with the adoption of new agricultural technology need to be explored in order to address the transition from homestead food gardening to smallholder irrigated farming. This study seeks to understand risk perception of smallholder irrigation farmers by linking constraints to commercialisation, adoption of new agricultural technologies and risk preferences of smallholder farmers in the Eastern Cape Province of South Africa. The overall objective of this research is to determine risk preference patterns and attitudes that influence the transition from homestead food gardening to irrigated farming of smallholder farming systems in the Eastern Cape province of South Africa. Specifically the study was to pursue the following objectives: (i) describe the demographic and socio-economic characteristics of smallholder farmers; (ii) describe existing farming systems among smallholder farmers in the study area; (iii) analyse the adoption of new agricultural technology by smallholder irrigation farmers; (iv) assess the risk perception of smallholder irrigation farmers and elicit farmers risk preferences, and (v) empirically analyse farmers sources of risk and risk management strategies. The outcome of this will inform policy formulation that have implications for technology adoption, increase smallholders capacity to bear risk and enable government and other role players have a clear understanding of smallholder farmers decisions. A total of 101 respondents were surveyed, consisting of 38 smallholder farmers and 63 homestead food gardeners in the Eastern Cape. Questionnaires were used to record household activities, socio-economic and institutional data as well as household demographics through personal interviews. The ordered probit model was applied due to the ordered nature of the dependent variable. The analysis was used to empirically analyse the determinants of farmers ‘risk preference status. The ordered probit model successfully estimated the significant variables associated with the farmer‘s adoption decisions. These were the farmer‘s age, household size, land size, locational setting, risk attitude, number of livestock (goats and chicken) and asset ownership. Homestead food gardeners were less risk averse that the smallholder farmers. Farmers who reside in the sub-wards Binfield and Battlefield were more likely to take risk than those who reside in Melani. This suggests the presence of local synergies in adoption which raises the question about the extent to which ignoring these influences biases policy conclusions. The negative correlation between land size and adoption implies that smaller farms appear to have greater propensity for adoption of new agricultural technology. This finding is supported by several studies reviewed in the literature that allude to the fact that homestead food gardeners tend to be smaller than smallholder farmers. By means of the Principal Component Analysis (PCA), seven principal components (PCs) that explained 66.13 percent of the variation were extracted. According to the loadings, the factors 1 to 7 can best be described as ‘financial and incentives index’, ‘input-output index’, ‘crop production index’, ‘labour bottleneck index’, ‘lack of production information index’, ‘lack of market opportunity index’, and ‘input availability index’ respectively. In general, price, production and financial risks were perceived as the most important sources of risk. Socio economic factors having a significant effect on the various sources of risk are age, gender, education, location, information access and risk taking ability. The most important traditional risk management strategies used by the surveyed smallholder farmers in Eastern Cape are crop diversification, precautionary savings and participating in social network. The findings are consistent with economic theory which postulates that in the absence of insurance markets, poor farm households tend to be risk averse and are reluctant to participate in farm investment decisions that are uncertain or involve higher risk.
- Full Text:
- Date Issued: 2017
- Authors: Modjadji, Mathlo Itumeleng
- Date: 2017
- Subjects: Irrigation farming -- South Africa -- Eastern Cape Risk-return relationships -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Doctoral , PhD
- Identifier: http://hdl.handle.net/10353/4846 , vital:28534
- Description: Although several studies have investigated commercial farmers’ risk preferences, there is still lack of information on the risk attitudes and risk preferences of smallholder farmers in South Africa. Risks associated with the adoption of new agricultural technology need to be explored in order to address the transition from homestead food gardening to smallholder irrigated farming. This study seeks to understand risk perception of smallholder irrigation farmers by linking constraints to commercialisation, adoption of new agricultural technologies and risk preferences of smallholder farmers in the Eastern Cape Province of South Africa. The overall objective of this research is to determine risk preference patterns and attitudes that influence the transition from homestead food gardening to irrigated farming of smallholder farming systems in the Eastern Cape province of South Africa. Specifically the study was to pursue the following objectives: (i) describe the demographic and socio-economic characteristics of smallholder farmers; (ii) describe existing farming systems among smallholder farmers in the study area; (iii) analyse the adoption of new agricultural technology by smallholder irrigation farmers; (iv) assess the risk perception of smallholder irrigation farmers and elicit farmers risk preferences, and (v) empirically analyse farmers sources of risk and risk management strategies. The outcome of this will inform policy formulation that have implications for technology adoption, increase smallholders capacity to bear risk and enable government and other role players have a clear understanding of smallholder farmers decisions. A total of 101 respondents were surveyed, consisting of 38 smallholder farmers and 63 homestead food gardeners in the Eastern Cape. Questionnaires were used to record household activities, socio-economic and institutional data as well as household demographics through personal interviews. The ordered probit model was applied due to the ordered nature of the dependent variable. The analysis was used to empirically analyse the determinants of farmers ‘risk preference status. The ordered probit model successfully estimated the significant variables associated with the farmer‘s adoption decisions. These were the farmer‘s age, household size, land size, locational setting, risk attitude, number of livestock (goats and chicken) and asset ownership. Homestead food gardeners were less risk averse that the smallholder farmers. Farmers who reside in the sub-wards Binfield and Battlefield were more likely to take risk than those who reside in Melani. This suggests the presence of local synergies in adoption which raises the question about the extent to which ignoring these influences biases policy conclusions. The negative correlation between land size and adoption implies that smaller farms appear to have greater propensity for adoption of new agricultural technology. This finding is supported by several studies reviewed in the literature that allude to the fact that homestead food gardeners tend to be smaller than smallholder farmers. By means of the Principal Component Analysis (PCA), seven principal components (PCs) that explained 66.13 percent of the variation were extracted. According to the loadings, the factors 1 to 7 can best be described as ‘financial and incentives index’, ‘input-output index’, ‘crop production index’, ‘labour bottleneck index’, ‘lack of production information index’, ‘lack of market opportunity index’, and ‘input availability index’ respectively. In general, price, production and financial risks were perceived as the most important sources of risk. Socio economic factors having a significant effect on the various sources of risk are age, gender, education, location, information access and risk taking ability. The most important traditional risk management strategies used by the surveyed smallholder farmers in Eastern Cape are crop diversification, precautionary savings and participating in social network. The findings are consistent with economic theory which postulates that in the absence of insurance markets, poor farm households tend to be risk averse and are reluctant to participate in farm investment decisions that are uncertain or involve higher risk.
- Full Text:
- Date Issued: 2017
Enhancing productivity and market participation for poverty reduction and shared prosperity in South Africa
- Authors: Avuletey, Richard
- Date: 2017
- Subjects: Poverty -- South Africa Economic development -- South Africa
- Language: English
- Type: Thesis , Doctoral , PhD
- Identifier: http://hdl.handle.net/10353/13978 , vital:39736
- Description: There have been several attempts by the South Africa government to improve the agricultural productivity on smallholder farms since the end of apartheid. In spite of the government support, agricultural productivity has stagnated for several years across the Eastern Cape rural communities including Mthatha and Qamata. The aim of this study was to understand the roles played by irrigation adoption and market participation in addressing poverty reduction and shared prosperity levels of smallholder farmers in Eastern Cape of South Africa. Data were collected using purposive and random sampling approach through the use of the snowball method. To collect data, a questionnaire was designed and administered through face-to-face interviews. Overall, 200 farmers were interviewed both at Mthatha and Qamata irrigation scheme to represent the farmers in the area. The collected data were analysed using both parametric and non-parametric methods. The non-parametric methods used include descriptive analysis, estimation of gross margins as a proxy for profitability. The Stochastic Frontier Analysis (SFA), Binomial Logistic Regression (BLR), Ordinary Least Squares (OLS), tobit censored regression and propensity score matching (PSM) were the parametric methods used in the study. Profit efficiency was measured using the normalized transcendent logarithmic profit frontier approach (Cobb-douglas). Stochastic Production Frontier (SPF) technique was used to determine the technical efficiency of individual farmers and to identify the major factors that influence technical efficiency. Binomial logistic regression was used to determine factors affecting irrigation adoption and market participation among smallholder farmers. OLS was used to estimate the impact of institutional characteristics, socio-economic and agronomic factors on smallholder farmers’ level of market participation for selected crop enterprises. Lastly, tobit regression and propensity score matching (PSM) analyses were used to estimate the impact of irrigation technology adoption on poverty reduction in the province. The results of the descriptive statistics of the overall sample revealed an average age of 61 years, and mean household size of 4.6 persons with majority of the household head having at least obtained some primary school education (59.5percent). Most of the household heads interviewed were men (68.5percent). Most farmers are single (65percent) with regard to their marital status. Farming is viewed as major source of livelihood for smallholders with an average income of R12523.37 for overall sample and income of R15559.80 and R5795.59 per crop season, respectively, for irrigators and non irrigators. Smallholder irrigators generated a higher gross margin of R7585.26, R21966.89 and R6266.07 from maize, cabbage and potato enterprises, respectively, compared to their non irrigator counterparts in maize (R131.39), cabbage (R10938.04) and potato (R3433.31) enterprises. The results of the frontier profit model revealed mean profit efficiency of 90percent, 99.99percent and 99.99percent, respectively, for maize, cabbage and potato.The binary logistic regression model for irrigation adoption indicated that years in school, cooperative membership, off-farm income, credit access and distance to market significantly explain smallholder farmers’ irrigation adoption decision. On the other hand, age of household head, market support, farm size, livestock income and distance to market were the key variables that accounted for smallholder farmers’ market participation adoption behaviour. The findings from the stochastic production frontier (SPF) indicate that smallholder farmers are technically efficient in maize and cabbage enterprises both at 99.99percent. Lastly, the findings from the Tobit regression and propensity score matching are consistent across the two methods, suggesting that being a member of irrigation adoption has a positive significant impact on income of smallholder farmers. Irrigation and market participation appear to have a significant and positive impact on smallholder poverty reduction (measured by crop income) for those farmers engaged in them. The findings from this study provide useful practical insights for policy makers, farm advisers and researchers in the design of effective and efficient policies, programmes and projects which can affect the adoption of irrigation technology and market participation.
- Full Text:
- Date Issued: 2017
- Authors: Avuletey, Richard
- Date: 2017
- Subjects: Poverty -- South Africa Economic development -- South Africa
- Language: English
- Type: Thesis , Doctoral , PhD
- Identifier: http://hdl.handle.net/10353/13978 , vital:39736
- Description: There have been several attempts by the South Africa government to improve the agricultural productivity on smallholder farms since the end of apartheid. In spite of the government support, agricultural productivity has stagnated for several years across the Eastern Cape rural communities including Mthatha and Qamata. The aim of this study was to understand the roles played by irrigation adoption and market participation in addressing poverty reduction and shared prosperity levels of smallholder farmers in Eastern Cape of South Africa. Data were collected using purposive and random sampling approach through the use of the snowball method. To collect data, a questionnaire was designed and administered through face-to-face interviews. Overall, 200 farmers were interviewed both at Mthatha and Qamata irrigation scheme to represent the farmers in the area. The collected data were analysed using both parametric and non-parametric methods. The non-parametric methods used include descriptive analysis, estimation of gross margins as a proxy for profitability. The Stochastic Frontier Analysis (SFA), Binomial Logistic Regression (BLR), Ordinary Least Squares (OLS), tobit censored regression and propensity score matching (PSM) were the parametric methods used in the study. Profit efficiency was measured using the normalized transcendent logarithmic profit frontier approach (Cobb-douglas). Stochastic Production Frontier (SPF) technique was used to determine the technical efficiency of individual farmers and to identify the major factors that influence technical efficiency. Binomial logistic regression was used to determine factors affecting irrigation adoption and market participation among smallholder farmers. OLS was used to estimate the impact of institutional characteristics, socio-economic and agronomic factors on smallholder farmers’ level of market participation for selected crop enterprises. Lastly, tobit regression and propensity score matching (PSM) analyses were used to estimate the impact of irrigation technology adoption on poverty reduction in the province. The results of the descriptive statistics of the overall sample revealed an average age of 61 years, and mean household size of 4.6 persons with majority of the household head having at least obtained some primary school education (59.5percent). Most of the household heads interviewed were men (68.5percent). Most farmers are single (65percent) with regard to their marital status. Farming is viewed as major source of livelihood for smallholders with an average income of R12523.37 for overall sample and income of R15559.80 and R5795.59 per crop season, respectively, for irrigators and non irrigators. Smallholder irrigators generated a higher gross margin of R7585.26, R21966.89 and R6266.07 from maize, cabbage and potato enterprises, respectively, compared to their non irrigator counterparts in maize (R131.39), cabbage (R10938.04) and potato (R3433.31) enterprises. The results of the frontier profit model revealed mean profit efficiency of 90percent, 99.99percent and 99.99percent, respectively, for maize, cabbage and potato.The binary logistic regression model for irrigation adoption indicated that years in school, cooperative membership, off-farm income, credit access and distance to market significantly explain smallholder farmers’ irrigation adoption decision. On the other hand, age of household head, market support, farm size, livestock income and distance to market were the key variables that accounted for smallholder farmers’ market participation adoption behaviour. The findings from the stochastic production frontier (SPF) indicate that smallholder farmers are technically efficient in maize and cabbage enterprises both at 99.99percent. Lastly, the findings from the Tobit regression and propensity score matching are consistent across the two methods, suggesting that being a member of irrigation adoption has a positive significant impact on income of smallholder farmers. Irrigation and market participation appear to have a significant and positive impact on smallholder poverty reduction (measured by crop income) for those farmers engaged in them. The findings from this study provide useful practical insights for policy makers, farm advisers and researchers in the design of effective and efficient policies, programmes and projects which can affect the adoption of irrigation technology and market participation.
- Full Text:
- Date Issued: 2017
Evaluation of the socio-economic performance of smallholder irrigation schemes in Idutywa Village of the Eastern Cape Province
- Authors: Jiba, Phiwe
- Date: 2017
- Subjects: Irrigation farming -- Economic aspects Farms, Small -- South Africa -- Eastern Cape Agricultural development projects -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MSc
- Identifier: http://hdl.handle.net/10353/4705 , vital:28497
- Description: South Africa and other African countries are faced with high levels of food insecurity and poverty levels as a result of slow growth of the macro economy and weak or sluggish rural development. Irrigation scheme development is seen as an important strategy to address the challenges faced by households in rural areas and restores growth and enhanced livelihoods. While the international experience shows that Irrigation schemes are potentially transformative of poor communities and have been operational for many years now, there is no marked improvement in living conditions of rural households in terms of livelihoods and income. This raises the question as to whether or not the schemes are viable from a socio-economic perspective and whether or not there are reasons for concern and revision of the policy framework for smallholder irrigation schemes. As a result of that, the broad objective of the study was to evaluate the contribution of smallholder irrigation schemes to household income and food security of rural households in Idutywa village of the Eastern Cape Province in South Africa. Specifically, this research investigated the major factors that influence their performance, impact of irrigation farming on rural livelihood and household food security as well as identifying the possible opportunities of production that would improve their performance. The study was carried out in Idutywa villages of the Eastern Cape Province in South Africa and employed survey data obtained from 107 households. The study employed a cross-sectional research design and the study employed stratified random sampling. The study made use of descriptive and inferential statistics to estimate the central tendency and dispersion as well as testing the hypothesis that there is a difference in the contribution between irrigators and non-irrigators using STATA and SPSS. Probit regression model was used to estimate factors that influenced the performance of smallholder irrigation schemes. The descriptive statistics employed included means, percentages and frequencies on the socio-economic characteristics of households in the study areas. The results show that females were dominant with a representation of 66.7 percent. The majority of households were aged and the mean age was 65 years. High level of illiteracy in the project area was revealed by the data. The average number of years, households spent in school was between 6 years to 10 years in school. Farming was found to be the major agricultural economic activity. Sixty-three (63 percent) were full time farmers. The results further show that household size ranges between 1 to 5 persons. The households were shown to be mostly dependent on social grant with household income hovering around R 1 000. The results from propensity score matching revealed that irrigation exerts a positive impact on household income. This provides sufficient evidence that irrigation schemes do make a contribution to rural livelihoods through their effect on household income and food security. This implies that government should continue investing in irrigation schemes as part of a strategy to grow the rural economy and improve rural livelihoods. This is in line with the Agricultural Policy Action Plan (APAP) and National Development Plan (NDP) of South Africa. Probit analysis suggests that age of the households, household size and market were some of the key determinants that positively influenced households’ decision to participate in smallholder irrigation schemes while access to credit had significant but negative effect on households’ decision to participate in smallholder irrigation schemes. Based on the findings highlighted above, it is recommended that addressing such barriers may create enabling conditions that would encourage households to access and participate more effectively in smallholder irrigation schemes.
- Full Text:
- Date Issued: 2017
- Authors: Jiba, Phiwe
- Date: 2017
- Subjects: Irrigation farming -- Economic aspects Farms, Small -- South Africa -- Eastern Cape Agricultural development projects -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MSc
- Identifier: http://hdl.handle.net/10353/4705 , vital:28497
- Description: South Africa and other African countries are faced with high levels of food insecurity and poverty levels as a result of slow growth of the macro economy and weak or sluggish rural development. Irrigation scheme development is seen as an important strategy to address the challenges faced by households in rural areas and restores growth and enhanced livelihoods. While the international experience shows that Irrigation schemes are potentially transformative of poor communities and have been operational for many years now, there is no marked improvement in living conditions of rural households in terms of livelihoods and income. This raises the question as to whether or not the schemes are viable from a socio-economic perspective and whether or not there are reasons for concern and revision of the policy framework for smallholder irrigation schemes. As a result of that, the broad objective of the study was to evaluate the contribution of smallholder irrigation schemes to household income and food security of rural households in Idutywa village of the Eastern Cape Province in South Africa. Specifically, this research investigated the major factors that influence their performance, impact of irrigation farming on rural livelihood and household food security as well as identifying the possible opportunities of production that would improve their performance. The study was carried out in Idutywa villages of the Eastern Cape Province in South Africa and employed survey data obtained from 107 households. The study employed a cross-sectional research design and the study employed stratified random sampling. The study made use of descriptive and inferential statistics to estimate the central tendency and dispersion as well as testing the hypothesis that there is a difference in the contribution between irrigators and non-irrigators using STATA and SPSS. Probit regression model was used to estimate factors that influenced the performance of smallholder irrigation schemes. The descriptive statistics employed included means, percentages and frequencies on the socio-economic characteristics of households in the study areas. The results show that females were dominant with a representation of 66.7 percent. The majority of households were aged and the mean age was 65 years. High level of illiteracy in the project area was revealed by the data. The average number of years, households spent in school was between 6 years to 10 years in school. Farming was found to be the major agricultural economic activity. Sixty-three (63 percent) were full time farmers. The results further show that household size ranges between 1 to 5 persons. The households were shown to be mostly dependent on social grant with household income hovering around R 1 000. The results from propensity score matching revealed that irrigation exerts a positive impact on household income. This provides sufficient evidence that irrigation schemes do make a contribution to rural livelihoods through their effect on household income and food security. This implies that government should continue investing in irrigation schemes as part of a strategy to grow the rural economy and improve rural livelihoods. This is in line with the Agricultural Policy Action Plan (APAP) and National Development Plan (NDP) of South Africa. Probit analysis suggests that age of the households, household size and market were some of the key determinants that positively influenced households’ decision to participate in smallholder irrigation schemes while access to credit had significant but negative effect on households’ decision to participate in smallholder irrigation schemes. Based on the findings highlighted above, it is recommended that addressing such barriers may create enabling conditions that would encourage households to access and participate more effectively in smallholder irrigation schemes.
- Full Text:
- Date Issued: 2017
Farm level cost-benefit analysis of conservation agriculture for maize smallholder farners in Okhahlamba Municipality in Kwa-Zulu Natal Province, South Africa
- Authors: Tafa, Sanelise
- Date: 2017
- Subjects: Agriculture -- South Africa -- Cost effectiveness , Agricultural conservation -- South Africa -- Kwa-Zulu Natal , Land use -- Economic aspects -- South Africa , Sustainable agriculture -- South Africa
- Language: English
- Type: Thesis , Masters , MSc
- Identifier: http://hdl.handle.net/10353/2809 , vital:28094
- Description: Land degradation is a serious problem that many poor communities face and this worsens their vulnerability and therefore, poses a threat to food security, as it reduces yield, forces farmers to use more inputs, and disproportionately affect the smallholder farmers in remote communities that also suffer diverse infrastructure disadvantages. In response to that, the international development agencies, donors, and Non-Governmental Organizations (NGOs), especially faith-based organizations have turned towards sustainable farming approaches. Much attention has been paid to a combination of sustainable farming measures which are packaged under the “Conservation Agriculture” (CA) banner. The previous work in the KZN Province and elsewhere has demonstrated that CA has the potential to improve the soil structure, thereby reversing the effect of soil degradation. Consequently, many of the farmers in the areas in which these demonstrations have been conducted appreciate the ecological and economic value of adopting CA. However, the on-farm financial benefits of adopting a CA specific tillage practice are not as well known or thought to be as pronounced. By means of integrating field survey, reviewed literature, and econometric analysis, this study assessed the farm level cost-benefit analysis of conservation agriculture for smallholder maize farmers in OLM, specifically in one demonstration village of Bergville town. The analysis is based on the case study of the NGO’s work in which they had selected a community and participating households who received assistance in a number of ways such as maize seed, soil preparation, and CA planters. To analyse the farm level cost-benefit analysis, descriptive, linear regression, gross margin (GM) and appraisal indicators such as Net Present Value (NPV), Benefit Cost Ratio (BCR) and Internal Rate of Return (IRR) were used. The descriptive analysis, used to analyse the factors affecting the extent of adoption of CA revealed that socio-economic characteristics have the influence on the level to which a farmer responds to incentives. Linear regression model used in this study showed that years in farming, involvement in joint farmer’s group, and use of cover crops have the significant effect on the extent of adoption of CA. Moreover, the calculated gross margins of the two tillage systems were different, revealing higher Gross Margins for CA plots than for conventional plots. The major cause of the difference was found to be differences in the variable costs. When using appraisal indicators (NPV, BCR, and IRR) the study projected a 10-year period at 8% and 10.5% discount rates. The study also revealed positive NPVs for both CA and conventional agriculture. The positive sign implies that there are positive pay-offs for investing in both trial and control plots. However, trial plots have larger NPVs compared to control plots, meaning that there are less additional returns for investing in control plots compared to trial plots. Results also reveal that with 10.5% discount rate, the NPVs are lower than with 8% discount rate, showing that lower discount rates are consistent with higher performance over the long term. This therefore means that at lower discount rate, it is more viable to produce maize using CA than using conventional tillage system. In the case of BRC presented in the study, it was revealed that at both low and high discount rates, the trial plots were more viable than the control plots. Finally, the IRR presented in the study reveal that the trial plots would be able to pay their way much faster than the control plots. Overall, the study found that there are incentives to adoption of CA compared to conventional farming. The message from the different results arising from the use of different discount rates is that farmers should receive assistance at low cost of capital in order for their operations to be viable and this works out well over the long term as shown by the 10-year period projections.
- Full Text:
- Date Issued: 2017
- Authors: Tafa, Sanelise
- Date: 2017
- Subjects: Agriculture -- South Africa -- Cost effectiveness , Agricultural conservation -- South Africa -- Kwa-Zulu Natal , Land use -- Economic aspects -- South Africa , Sustainable agriculture -- South Africa
- Language: English
- Type: Thesis , Masters , MSc
- Identifier: http://hdl.handle.net/10353/2809 , vital:28094
- Description: Land degradation is a serious problem that many poor communities face and this worsens their vulnerability and therefore, poses a threat to food security, as it reduces yield, forces farmers to use more inputs, and disproportionately affect the smallholder farmers in remote communities that also suffer diverse infrastructure disadvantages. In response to that, the international development agencies, donors, and Non-Governmental Organizations (NGOs), especially faith-based organizations have turned towards sustainable farming approaches. Much attention has been paid to a combination of sustainable farming measures which are packaged under the “Conservation Agriculture” (CA) banner. The previous work in the KZN Province and elsewhere has demonstrated that CA has the potential to improve the soil structure, thereby reversing the effect of soil degradation. Consequently, many of the farmers in the areas in which these demonstrations have been conducted appreciate the ecological and economic value of adopting CA. However, the on-farm financial benefits of adopting a CA specific tillage practice are not as well known or thought to be as pronounced. By means of integrating field survey, reviewed literature, and econometric analysis, this study assessed the farm level cost-benefit analysis of conservation agriculture for smallholder maize farmers in OLM, specifically in one demonstration village of Bergville town. The analysis is based on the case study of the NGO’s work in which they had selected a community and participating households who received assistance in a number of ways such as maize seed, soil preparation, and CA planters. To analyse the farm level cost-benefit analysis, descriptive, linear regression, gross margin (GM) and appraisal indicators such as Net Present Value (NPV), Benefit Cost Ratio (BCR) and Internal Rate of Return (IRR) were used. The descriptive analysis, used to analyse the factors affecting the extent of adoption of CA revealed that socio-economic characteristics have the influence on the level to which a farmer responds to incentives. Linear regression model used in this study showed that years in farming, involvement in joint farmer’s group, and use of cover crops have the significant effect on the extent of adoption of CA. Moreover, the calculated gross margins of the two tillage systems were different, revealing higher Gross Margins for CA plots than for conventional plots. The major cause of the difference was found to be differences in the variable costs. When using appraisal indicators (NPV, BCR, and IRR) the study projected a 10-year period at 8% and 10.5% discount rates. The study also revealed positive NPVs for both CA and conventional agriculture. The positive sign implies that there are positive pay-offs for investing in both trial and control plots. However, trial plots have larger NPVs compared to control plots, meaning that there are less additional returns for investing in control plots compared to trial plots. Results also reveal that with 10.5% discount rate, the NPVs are lower than with 8% discount rate, showing that lower discount rates are consistent with higher performance over the long term. This therefore means that at lower discount rate, it is more viable to produce maize using CA than using conventional tillage system. In the case of BRC presented in the study, it was revealed that at both low and high discount rates, the trial plots were more viable than the control plots. Finally, the IRR presented in the study reveal that the trial plots would be able to pay their way much faster than the control plots. Overall, the study found that there are incentives to adoption of CA compared to conventional farming. The message from the different results arising from the use of different discount rates is that farmers should receive assistance at low cost of capital in order for their operations to be viable and this works out well over the long term as shown by the 10-year period projections.
- Full Text:
- Date Issued: 2017
Investigating adaptation strategies to climate change by smallholder farmers : evidence from, Lesotho
- Authors: Morahanye, Mokhantso Lilian
- Date: 2017
- Subjects: Climatic changes -- South Africa Farms, Small -- South Africa
- Language: English
- Type: Thesis , Masters , MSc
- Identifier: http://hdl.handle.net/10353/5807 , vital:29397
- Description: In Lesotho, agriculture is the dominant activity and involves crop and livestock production, range management and forestry activities. The current climatic variability in the country has caused decline in food production as result of increased dry spells, frequency of droughts and erratic rainfall. These climatic events are expected to have a significant impact on the livelihoods of the smallholder farmers. In combatting the harmful effects of climate change, smallholder farmers in Lesotho have employed various adaptation strategies based on their local knowledge and limited means. While these strategies may not be optimal they obviously constitute the basis for potentially effective improved technologies which can be developed and communicated through an efficient extension system, hence the need to precisely identify them and understand the factors that affect their choice. The main objective of this study was therefore, to identify the adaptation strategies and investigate the factors influencing smallholder farmers’ choice of those adaptation strategies. The study made use of multi-stage stratified sampling technique to select 160 respondents across four agro-ecological zones (lowlands, highlands, foothills and Senqu River Valley) in Leribe and Mohales’Hoek districts of Lesotho. Primary data for the study were collected using semi - structured questionnaire assisted with interview schedules administered on the respondents. Data collected were analysed using descriptive statistics and the multinomial logistics regression model. The results show that there are more males than females, majority of the respondents’ attained primary education, and older people dominate the smallholder farming system. The adaptation strategies used in MNL model were soil and water management, crop management and livestock management. The results further revealed that soil and water management strategies were the most adopted climate change strategies amongst smallholder farmers. It is understood that marital status, age and gender, income, land tenure, crop grown, extension services, and agro-ecological zones are the determinant factors influencing the choice of the adaptation strategies. This study concludes by recommending that smallholder farmers should be sensitised about climate change and both government and non-government organisations working on climate change related issues should direct their attention to rural communities to ensure effective response to climate change.
- Full Text:
- Date Issued: 2017
- Authors: Morahanye, Mokhantso Lilian
- Date: 2017
- Subjects: Climatic changes -- South Africa Farms, Small -- South Africa
- Language: English
- Type: Thesis , Masters , MSc
- Identifier: http://hdl.handle.net/10353/5807 , vital:29397
- Description: In Lesotho, agriculture is the dominant activity and involves crop and livestock production, range management and forestry activities. The current climatic variability in the country has caused decline in food production as result of increased dry spells, frequency of droughts and erratic rainfall. These climatic events are expected to have a significant impact on the livelihoods of the smallholder farmers. In combatting the harmful effects of climate change, smallholder farmers in Lesotho have employed various adaptation strategies based on their local knowledge and limited means. While these strategies may not be optimal they obviously constitute the basis for potentially effective improved technologies which can be developed and communicated through an efficient extension system, hence the need to precisely identify them and understand the factors that affect their choice. The main objective of this study was therefore, to identify the adaptation strategies and investigate the factors influencing smallholder farmers’ choice of those adaptation strategies. The study made use of multi-stage stratified sampling technique to select 160 respondents across four agro-ecological zones (lowlands, highlands, foothills and Senqu River Valley) in Leribe and Mohales’Hoek districts of Lesotho. Primary data for the study were collected using semi - structured questionnaire assisted with interview schedules administered on the respondents. Data collected were analysed using descriptive statistics and the multinomial logistics regression model. The results show that there are more males than females, majority of the respondents’ attained primary education, and older people dominate the smallholder farming system. The adaptation strategies used in MNL model were soil and water management, crop management and livestock management. The results further revealed that soil and water management strategies were the most adopted climate change strategies amongst smallholder farmers. It is understood that marital status, age and gender, income, land tenure, crop grown, extension services, and agro-ecological zones are the determinant factors influencing the choice of the adaptation strategies. This study concludes by recommending that smallholder farmers should be sensitised about climate change and both government and non-government organisations working on climate change related issues should direct their attention to rural communities to ensure effective response to climate change.
- Full Text:
- Date Issued: 2017
Market participation effect on profitability of Zanyokhwe and Melani irrigation schemes in Eastern Cape province of South Africa
- Authors: Qapeshu, Sipumle
- Date: 2017
- Subjects: Farms, Small -- South Africa -- Eastern Cape Agriculture -- Economic aspects -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MAgric
- Identifier: http://hdl.handle.net/10353/15639 , vital:40493
- Description: Profit accumulation is one of the key benefits associated with market access. However, market access tend to be the major challenge to many smallholder farmers and that ends up influencing their profitability. Irrigation schemes became one of the coping mechanisms for such farmers whereby they work collectively with the aim of overcoming the various technical and institutional constraints they confront. This study examined how profitability is influenced by market participation of irrigation schemes by identifying the market structures used by irrigation schemes and describing the challenges encountered by smallholder irrigation scheme members who operate in those markets and assessing the profitability of the identified market. Primary data were collected using a comprehensive questionnaire made up of both open and closed ended questions. Data were collected from two irrigation schemes namely: Melani irrigation scheme (Alice – Raymond Mhlaba Local Municipality) and Zanyokhwe irrigation scheme (Keiskammahoek – Amahlathi Local Municipality). Multi-stage sampling procedure was employed to select 100 respondents. SPSS (version 22) and Microsoft Excel computer programmes were employed to conduct the wide range of descriptive and inferential analyses involved. Frequencies, percentages and means were used for the descriptive results to describe the general characteristics (example: gender, age, marital status and level of education) and socioeconomic features of the respondents. A regression model (Binary logistic model) was done to examine how profitability is influenced by market participation. Furthermore, Gross Margin Analysis was conducted to find out the profitability of the market structures used by these irrigation schemes. The descriptive results showed that there is a relationship between profitability and market participation of smallholder irrigation schemes in Eastern Cape Province of South Africa, by participate on markets this can improve the livelihood of farmers. The binary logistic regression model results revealed that there are five significant variables at different statistical levels. Age (10percent), years of schooling (1percent), distance to markets (1percent), farming experience (5percent) and the household income at (10percent) had a statistically significant influence on the market participation decision. These findings suggest that an improvement in each of the significant variables can significantly influence farmer market participation decisions. Furthermore, based on the results of the study, policy recommendations are suggested, including improving dissemination of market information to farmers, encouraging farmers to seek markets before production and encouraging farmers to add value to their produce. The Gross Margin Analysis that was performed showed that in Melani irrigation scheme farmers had positive gross margins and farmers in Zanyokhwe irrigation scheme had a negative gross margin. Therefore it can be concluded that the market that is available to Zanyokhwe irrigation scheme does not give good returns, suggesting a need for changing the market so as to ensure that farmers derive meaningful access. The study recommends the improvements to market participation through credit to low income farmers, formal training, market information, better price and tax policies for smallholder irrigation farming to ensure sustainable improvements in profitability of smallholder irrigation schemes.
- Full Text:
- Date Issued: 2017
- Authors: Qapeshu, Sipumle
- Date: 2017
- Subjects: Farms, Small -- South Africa -- Eastern Cape Agriculture -- Economic aspects -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MAgric
- Identifier: http://hdl.handle.net/10353/15639 , vital:40493
- Description: Profit accumulation is one of the key benefits associated with market access. However, market access tend to be the major challenge to many smallholder farmers and that ends up influencing their profitability. Irrigation schemes became one of the coping mechanisms for such farmers whereby they work collectively with the aim of overcoming the various technical and institutional constraints they confront. This study examined how profitability is influenced by market participation of irrigation schemes by identifying the market structures used by irrigation schemes and describing the challenges encountered by smallholder irrigation scheme members who operate in those markets and assessing the profitability of the identified market. Primary data were collected using a comprehensive questionnaire made up of both open and closed ended questions. Data were collected from two irrigation schemes namely: Melani irrigation scheme (Alice – Raymond Mhlaba Local Municipality) and Zanyokhwe irrigation scheme (Keiskammahoek – Amahlathi Local Municipality). Multi-stage sampling procedure was employed to select 100 respondents. SPSS (version 22) and Microsoft Excel computer programmes were employed to conduct the wide range of descriptive and inferential analyses involved. Frequencies, percentages and means were used for the descriptive results to describe the general characteristics (example: gender, age, marital status and level of education) and socioeconomic features of the respondents. A regression model (Binary logistic model) was done to examine how profitability is influenced by market participation. Furthermore, Gross Margin Analysis was conducted to find out the profitability of the market structures used by these irrigation schemes. The descriptive results showed that there is a relationship between profitability and market participation of smallholder irrigation schemes in Eastern Cape Province of South Africa, by participate on markets this can improve the livelihood of farmers. The binary logistic regression model results revealed that there are five significant variables at different statistical levels. Age (10percent), years of schooling (1percent), distance to markets (1percent), farming experience (5percent) and the household income at (10percent) had a statistically significant influence on the market participation decision. These findings suggest that an improvement in each of the significant variables can significantly influence farmer market participation decisions. Furthermore, based on the results of the study, policy recommendations are suggested, including improving dissemination of market information to farmers, encouraging farmers to seek markets before production and encouraging farmers to add value to their produce. The Gross Margin Analysis that was performed showed that in Melani irrigation scheme farmers had positive gross margins and farmers in Zanyokhwe irrigation scheme had a negative gross margin. Therefore it can be concluded that the market that is available to Zanyokhwe irrigation scheme does not give good returns, suggesting a need for changing the market so as to ensure that farmers derive meaningful access. The study recommends the improvements to market participation through credit to low income farmers, formal training, market information, better price and tax policies for smallholder irrigation farming to ensure sustainable improvements in profitability of smallholder irrigation schemes.
- Full Text:
- Date Issued: 2017
Perceptions of rural households about the role and effect of biogas production on rural household income in Raymond Mhlaba Local Municipality
- Authors: Ngcobo, Lindiwe
- Date: 2017
- Subjects: Biomass energy -- South Africa -- Eastern Cape Renewable energy sources -- South Africa -- Eastern Cape Sustainable living -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MSc
- Identifier: http://hdl.handle.net/10353/4694 , vital:28494
- Description: Rural development efforts to reduce poverty and enhance food security and generally improve livelihoods in developing countries continue to be constrained by high energy cost. For that reason, renewable energy has been identified as a possible panacea to fill this gap. Renewable energy is cheaper, more accessible and environmentally sustainable and promotes inclusivity. Biogas is a renewable energy that is readily available and easy to use by poor rural households. The use of biogas digesters among households in rural areas of developing countries is a well-known technology. The potential for biogas in these areas has been demonstrated and a strong economic case has been made. However, its adoption and use have been lower than expectations possibly as result of non-economic considerations, including social issues about which rural people hold different perceptions. Perceptions of rural households are important because they influence the behaviour to a large extent. Since limited access to affordable energy in rural areas has encouraged government and private organisations to initiate biogas projects to overcome the challenge, it is important to ascertain the factors that affect attitudes towards the technology. The present study sought to explore perceptions of rural households about biogas production towards rural household income in the Raymond Mhlaba Local Municipality. Specifically, this research investigated the state of biogas project being implemented by the University of Fort Hare’s Institute of Technology (FHIT), the perceptions of respondents towards biogas production and determine the contribution of biogas consumption to rural income. The study also aimed to identify the factors affecting the adoption of biogas production in the study area. The study was carried out in Melani village in Raymond Mhlaba Local Municipality in the Eastern Cape Province of South Africa and employed survey data obtained from 48 households who were enumerated to identify their perceptions on biogas production, with special emphasis on the role and effect contributed to rural income of Melani village. The study employed a cross-sectional research design and purposive sampling technique was used in data collection. Data were collected and captured in Excel and then analysed using the statistical package for social sciences (SPSS) Version 24 Descriptive statistics was used to examine socio-economic characteristics of households and state of biogas production in the area, Bivariate correlation analysis was used to determine the relationships among the key elements of perceptions of household towards biogas adoption, binary logistic model was used to estimate factors influencing adoption of biogas technology by households. The results show that women were dominant for both adopters and non-adopters of biogas. The majority of households were young with mean age of 40 years while for non-adopters were 65 years old on average. The results showed high levels of literacy amongst household adopters. Majority of the households for both adopters and non-adopters of biogas technology were married and unemployed and household size ranged from one to five persons, with social grants being dominant source of income. The bivariate correlation analysis suggests a positive effect of green pepper production and livestock ownership on biogas technology adoption. Age and level of education were negatively correlated with adoption of biogas. The cross tabulation analysis suggests that water scarcity, lack of knowledge about biogas technology, cattle ownership, lack of maintenance and repairing, flooded biogas digesters during rainy season are negatively associated with the uptake of biogas technology. The empirical results from binary logistic model suggest that land size was the key determinant of adoption behaviour towards biogas technology while age of the household head, source of income and level of education may have a negative influence on adoption of biogas technology. Based on the findings highlighted above, the study recommends strategies to encourage households to adopt biogas technology.
- Full Text:
- Date Issued: 2017
- Authors: Ngcobo, Lindiwe
- Date: 2017
- Subjects: Biomass energy -- South Africa -- Eastern Cape Renewable energy sources -- South Africa -- Eastern Cape Sustainable living -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MSc
- Identifier: http://hdl.handle.net/10353/4694 , vital:28494
- Description: Rural development efforts to reduce poverty and enhance food security and generally improve livelihoods in developing countries continue to be constrained by high energy cost. For that reason, renewable energy has been identified as a possible panacea to fill this gap. Renewable energy is cheaper, more accessible and environmentally sustainable and promotes inclusivity. Biogas is a renewable energy that is readily available and easy to use by poor rural households. The use of biogas digesters among households in rural areas of developing countries is a well-known technology. The potential for biogas in these areas has been demonstrated and a strong economic case has been made. However, its adoption and use have been lower than expectations possibly as result of non-economic considerations, including social issues about which rural people hold different perceptions. Perceptions of rural households are important because they influence the behaviour to a large extent. Since limited access to affordable energy in rural areas has encouraged government and private organisations to initiate biogas projects to overcome the challenge, it is important to ascertain the factors that affect attitudes towards the technology. The present study sought to explore perceptions of rural households about biogas production towards rural household income in the Raymond Mhlaba Local Municipality. Specifically, this research investigated the state of biogas project being implemented by the University of Fort Hare’s Institute of Technology (FHIT), the perceptions of respondents towards biogas production and determine the contribution of biogas consumption to rural income. The study also aimed to identify the factors affecting the adoption of biogas production in the study area. The study was carried out in Melani village in Raymond Mhlaba Local Municipality in the Eastern Cape Province of South Africa and employed survey data obtained from 48 households who were enumerated to identify their perceptions on biogas production, with special emphasis on the role and effect contributed to rural income of Melani village. The study employed a cross-sectional research design and purposive sampling technique was used in data collection. Data were collected and captured in Excel and then analysed using the statistical package for social sciences (SPSS) Version 24 Descriptive statistics was used to examine socio-economic characteristics of households and state of biogas production in the area, Bivariate correlation analysis was used to determine the relationships among the key elements of perceptions of household towards biogas adoption, binary logistic model was used to estimate factors influencing adoption of biogas technology by households. The results show that women were dominant for both adopters and non-adopters of biogas. The majority of households were young with mean age of 40 years while for non-adopters were 65 years old on average. The results showed high levels of literacy amongst household adopters. Majority of the households for both adopters and non-adopters of biogas technology were married and unemployed and household size ranged from one to five persons, with social grants being dominant source of income. The bivariate correlation analysis suggests a positive effect of green pepper production and livestock ownership on biogas technology adoption. Age and level of education were negatively correlated with adoption of biogas. The cross tabulation analysis suggests that water scarcity, lack of knowledge about biogas technology, cattle ownership, lack of maintenance and repairing, flooded biogas digesters during rainy season are negatively associated with the uptake of biogas technology. The empirical results from binary logistic model suggest that land size was the key determinant of adoption behaviour towards biogas technology while age of the household head, source of income and level of education may have a negative influence on adoption of biogas technology. Based on the findings highlighted above, the study recommends strategies to encourage households to adopt biogas technology.
- Full Text:
- Date Issued: 2017
- «
- ‹
- 1
- ›
- »