Analyzing agricultural financing for resettled farmers in Zimbabwe: the case of targeted Command Agricultural program in Mutare District
- Mafirakurewa, Tariro https://orcid.org/0009-0000-6587-4524
- Authors: Mafirakurewa, Tariro https://orcid.org/0009-0000-6587-4524
- Date: 2023
- Subjects: Agricultural administration--Finance , Farmers -- Zimbabwe , Agriculture -- Economic aspects
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10353/28255 , vital:73985
- Description: Agriculture plays a paramount role in the economy of many countries including Zimbabwe where more than 70 percent of the population depends on agricultural activities for their livelihoods. Smallholder farmers’ access to agricultural credit is vital for the development and growth of Zimbabwe’s agricultural sector, hence agricultural financing is crucial in rural development. Despite the Government’s efforts to provide affordable agricultural credit services to its majority smallholder farmers’ participation is still meager. The aim of this study is to analyze agricultural financing for resettled farmers in Zimbabwe, with special focus on the command agricultural loans in the Mutare district. A multistage sampling technique was employed in this study. Firstly purposive selection of Manicaland province was carried out because it is endowed with the five natural farming regions found in Zimbabwe. The second stage involved a random selection of 4 out of 7 districts with favorable climatic conditions for maize production. Thirdly, the study also carried out a purposive selection of Mutare district among the four districts with favorable climatic conditions, given the time and financial constraints. The last stage involved the use of stratified sampling technique, where the sample was divided into two strata. Stratum 1 with A1 farmers and stratum two consisting of A2 farmers, and a random sample was selected from each stratum. The study involved 301 A1 farmers and 49 A2 farmers, making a total sample of 350 farmers used for this study. Double hurdle was employed to examine the factors influencing A1 and A2 farmers` participation in command agriculture loans in the study area. Multinomial logistic regression model was also applied to investigate the determinants of command agriculture loan repayment, while propensity score matching technique was used to examine the impacts of command agriculture loans on maize productivity and profitability of A1 and A2 farmers. The results revealed that family size, and distance from the market GMB positively influence farmers likelihood to participate in in the command agricultural loan. While family size, farmer type and distance from the market were proven to have a positive significant influence on the extent of participation in command agriculture. Also training on the command agriculture loan and gender were proven to have a negative signification influence on the extent of farmers` participation in command agriculture loan. The maximum likelihood estimates of the multinomial logistic regression revealed that age and output levels significantly influence resettled farmers` likelihood to partly pay their loans. Also, the likelihood estimates of the multinomial logistic regression showed that distance from the market and output levels have a positive influence on resettled farmers` likelihood of fully paying the command agriculture loan. Access to extension services to extension services was proven to negatively influence farmers` likelihood to fully pay the loan. The results also revealed that participating in command agriculture significantly impacted productivity at the 1 percent level, while it was not significant in the participants' profitability. The results show that participating in command agriculture increases productivity by 0.93 tonnes hectare. The study recommends the intensification of extension service supply to ensure that farmers are receiving relevant agricultural training, mainly on climate change adaptation strategies. This will help resettled farmers to adjust and adapt to their new farming environments and, in turn, have a positive impact on their production levels. Also, to improve farmers’ profitability the GMB selling price should be in American dollars USD and not paid in part RTGS and part USD, because the RTGS part is always outstripped by inflation. , Thesis (MSc) -- Faculty of Science and Agriculture, 2023
- Full Text:
- Authors: Mafirakurewa, Tariro https://orcid.org/0009-0000-6587-4524
- Date: 2023
- Subjects: Agricultural administration--Finance , Farmers -- Zimbabwe , Agriculture -- Economic aspects
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10353/28255 , vital:73985
- Description: Agriculture plays a paramount role in the economy of many countries including Zimbabwe where more than 70 percent of the population depends on agricultural activities for their livelihoods. Smallholder farmers’ access to agricultural credit is vital for the development and growth of Zimbabwe’s agricultural sector, hence agricultural financing is crucial in rural development. Despite the Government’s efforts to provide affordable agricultural credit services to its majority smallholder farmers’ participation is still meager. The aim of this study is to analyze agricultural financing for resettled farmers in Zimbabwe, with special focus on the command agricultural loans in the Mutare district. A multistage sampling technique was employed in this study. Firstly purposive selection of Manicaland province was carried out because it is endowed with the five natural farming regions found in Zimbabwe. The second stage involved a random selection of 4 out of 7 districts with favorable climatic conditions for maize production. Thirdly, the study also carried out a purposive selection of Mutare district among the four districts with favorable climatic conditions, given the time and financial constraints. The last stage involved the use of stratified sampling technique, where the sample was divided into two strata. Stratum 1 with A1 farmers and stratum two consisting of A2 farmers, and a random sample was selected from each stratum. The study involved 301 A1 farmers and 49 A2 farmers, making a total sample of 350 farmers used for this study. Double hurdle was employed to examine the factors influencing A1 and A2 farmers` participation in command agriculture loans in the study area. Multinomial logistic regression model was also applied to investigate the determinants of command agriculture loan repayment, while propensity score matching technique was used to examine the impacts of command agriculture loans on maize productivity and profitability of A1 and A2 farmers. The results revealed that family size, and distance from the market GMB positively influence farmers likelihood to participate in in the command agricultural loan. While family size, farmer type and distance from the market were proven to have a positive significant influence on the extent of participation in command agriculture. Also training on the command agriculture loan and gender were proven to have a negative signification influence on the extent of farmers` participation in command agriculture loan. The maximum likelihood estimates of the multinomial logistic regression revealed that age and output levels significantly influence resettled farmers` likelihood to partly pay their loans. Also, the likelihood estimates of the multinomial logistic regression showed that distance from the market and output levels have a positive influence on resettled farmers` likelihood of fully paying the command agriculture loan. Access to extension services to extension services was proven to negatively influence farmers` likelihood to fully pay the loan. The results also revealed that participating in command agriculture significantly impacted productivity at the 1 percent level, while it was not significant in the participants' profitability. The results show that participating in command agriculture increases productivity by 0.93 tonnes hectare. The study recommends the intensification of extension service supply to ensure that farmers are receiving relevant agricultural training, mainly on climate change adaptation strategies. This will help resettled farmers to adjust and adapt to their new farming environments and, in turn, have a positive impact on their production levels. Also, to improve farmers’ profitability the GMB selling price should be in American dollars USD and not paid in part RTGS and part USD, because the RTGS part is always outstripped by inflation. , Thesis (MSc) -- Faculty of Science and Agriculture, 2023
- Full Text:
Impact assessment of genetically modified TELA® Bt. maize variety adoption on yield, household income, technical efficiency and food security: a case of maize farmers in Limpopo and Mpumalanga Provinces, South Africa.
- Authors: Mailula, Lesiba Pertunia
- Date: 2023
- Subjects: Food security , Farmers -- Training of , Seed technology -- Economic aspects
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10353/28266 , vital:74040
- Description: The agricultural sector is widely recognized as a crucial factor for promoting sustainable economic development, reducing poverty, and ensuring food security in developing countries. However, in Africa, the agricultural sector continues to underperform, with growth rates falling behind the population growth, this can be attributed to various challenges, including climate change and pest infestation. This has over the years weakened the defence of crops leading to the disruptions in crop production and food security. As such, calls have been made that adoption of the agricultural technology may promote food security through high yields. This is because agricultural technology crops have improved varieties such as drought tolerance and pest resistance traits. However, adoption of improved agricultural technology in Africa has been very sluggish amongst smallholder farmers, particularly for GM seed, this is due to the on-going controversies and compliance requirements regarding GM technologies. The controversies are raised by the unknown benefits and risks associated with the adoption of GM seeds technology. Furthermore, there are mixed benefits associated with GM technology adoption as well as methodological and data gaps associated with assessment of GM impact on the farmer’s welfare. In 2016, five Bt. maize varieties trademarked TELA were developed through the WEMA project. Trials were approved and launched with smallholder farmers in various countries in Africa, and South Africa is not an exception. Several smallholder maize farmers have accessed the TELA Bt. maize varieties through local seed companies and have been producing it for the past seasons. Yet, no study that has been conducted on the impact of the GM TELA Bt. maize technology adoption on yield, income, food security and technical efficiency, hence, a need for such a study. The primary data was collected from 289 183 TELA Bt. and 106 non-TELA Bt. smallholder farmers in Mpumalanga and Limpopo provinces using convenience and snowball sampling techniques. Data were analysed using various analytical tools that included descriptive statistics, gross margin analysis, Household Dietary Diversity Score, Stochastic Frontier Model and the Propensity Score Matching, modelled through the Probit regression model. These tools were utilised to address the objectives. The descriptive statistics show that the TELA Bt. maize variety yielded 61.1 percent more maize output as compared to non-TELA Bt. maize farmers, with an average of 691kg ha and 429kg ha, respectively. The gross margin analysis showed higher subsequent income for the TELA Bt. maize farmers R2 834.93 compared to R2 124.96 for the non-TELA Bt. maize farmers. The results of the HDDS showed a marginal effect of TELA Bt. maize seed technology on food diversity. The average HDDS scores were 8.4 and 7.5 for the TELA Bt. and non-TELA Bt. maize farmers, respectively. The Stochastic Frontier Analysis SFA results revealed that both the TELA Bt. maize farmers and non-TELA Bt. maize farmers were technically inefficient. However, the TELA Bt. maize farmers were better-off than their counterparts, with mean technical efficiency scores of 0.416 and 0.328, respectively. The Propensity Score Matching PSM using the Probit model revealed that gender 0.6064, number of years in farming 0.0099 credit 1.1438 and market access 0.4427 had a positive and significant influence on the decision taken by the farmers to adopt TELA Bt. maize seed technology. However, access to extension services was found to have a negative and significant impact on the adoption of TELA Bt. maize seed technology. The Average Treatment Effect of the Treated ATT using the Nearest Neighbour Matching algorithm indicated that adoption of TELA Bt. maize technology improved farmers’ yields by 254.3kg, income by 0.36 cents and technical efficiency by 8.6 percent. There was no significant relationship observed between adoption of the GM technology and food security. Generally, the results from this study imply that adoption of GM TELA Bt. maize seed technology improves farmers’ yields, income, technical efficiency, as well as food security. The study therefore, recommends increased awareness of the GM seed technology benefits to farmers, coupled with training and capacity development to enhance adoption of seed technology towards improved farmers’ welfare. In addition, there is a need for sustained Research and Development investments towards GM seed technologies to enhance maize productivity and technical efficiency of the farmers. , Thesis (MSc) -- Faculty of Science and Agriculture, 2023
- Full Text:
- Authors: Mailula, Lesiba Pertunia
- Date: 2023
- Subjects: Food security , Farmers -- Training of , Seed technology -- Economic aspects
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10353/28266 , vital:74040
- Description: The agricultural sector is widely recognized as a crucial factor for promoting sustainable economic development, reducing poverty, and ensuring food security in developing countries. However, in Africa, the agricultural sector continues to underperform, with growth rates falling behind the population growth, this can be attributed to various challenges, including climate change and pest infestation. This has over the years weakened the defence of crops leading to the disruptions in crop production and food security. As such, calls have been made that adoption of the agricultural technology may promote food security through high yields. This is because agricultural technology crops have improved varieties such as drought tolerance and pest resistance traits. However, adoption of improved agricultural technology in Africa has been very sluggish amongst smallholder farmers, particularly for GM seed, this is due to the on-going controversies and compliance requirements regarding GM technologies. The controversies are raised by the unknown benefits and risks associated with the adoption of GM seeds technology. Furthermore, there are mixed benefits associated with GM technology adoption as well as methodological and data gaps associated with assessment of GM impact on the farmer’s welfare. In 2016, five Bt. maize varieties trademarked TELA were developed through the WEMA project. Trials were approved and launched with smallholder farmers in various countries in Africa, and South Africa is not an exception. Several smallholder maize farmers have accessed the TELA Bt. maize varieties through local seed companies and have been producing it for the past seasons. Yet, no study that has been conducted on the impact of the GM TELA Bt. maize technology adoption on yield, income, food security and technical efficiency, hence, a need for such a study. The primary data was collected from 289 183 TELA Bt. and 106 non-TELA Bt. smallholder farmers in Mpumalanga and Limpopo provinces using convenience and snowball sampling techniques. Data were analysed using various analytical tools that included descriptive statistics, gross margin analysis, Household Dietary Diversity Score, Stochastic Frontier Model and the Propensity Score Matching, modelled through the Probit regression model. These tools were utilised to address the objectives. The descriptive statistics show that the TELA Bt. maize variety yielded 61.1 percent more maize output as compared to non-TELA Bt. maize farmers, with an average of 691kg ha and 429kg ha, respectively. The gross margin analysis showed higher subsequent income for the TELA Bt. maize farmers R2 834.93 compared to R2 124.96 for the non-TELA Bt. maize farmers. The results of the HDDS showed a marginal effect of TELA Bt. maize seed technology on food diversity. The average HDDS scores were 8.4 and 7.5 for the TELA Bt. and non-TELA Bt. maize farmers, respectively. The Stochastic Frontier Analysis SFA results revealed that both the TELA Bt. maize farmers and non-TELA Bt. maize farmers were technically inefficient. However, the TELA Bt. maize farmers were better-off than their counterparts, with mean technical efficiency scores of 0.416 and 0.328, respectively. The Propensity Score Matching PSM using the Probit model revealed that gender 0.6064, number of years in farming 0.0099 credit 1.1438 and market access 0.4427 had a positive and significant influence on the decision taken by the farmers to adopt TELA Bt. maize seed technology. However, access to extension services was found to have a negative and significant impact on the adoption of TELA Bt. maize seed technology. The Average Treatment Effect of the Treated ATT using the Nearest Neighbour Matching algorithm indicated that adoption of TELA Bt. maize technology improved farmers’ yields by 254.3kg, income by 0.36 cents and technical efficiency by 8.6 percent. There was no significant relationship observed between adoption of the GM technology and food security. Generally, the results from this study imply that adoption of GM TELA Bt. maize seed technology improves farmers’ yields, income, technical efficiency, as well as food security. The study therefore, recommends increased awareness of the GM seed technology benefits to farmers, coupled with training and capacity development to enhance adoption of seed technology towards improved farmers’ welfare. In addition, there is a need for sustained Research and Development investments towards GM seed technologies to enhance maize productivity and technical efficiency of the farmers. , Thesis (MSc) -- Faculty of Science and Agriculture, 2023
- Full Text:
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