An evaluation of the effects of land tenure security in on-farm investment and on-farm productivity: a case of the smallholder farmers in the Amathole District of the Eastern Cape Province of South Africa
- Authors: Zwelendaba, Vincent Vusumzi
- Date: 2014
- Subjects: Land tenure -- South Africa -- Eastern Cape , Agricultural productivity -- South Africa -- Eastern Cape , Farms, Small -- South Africa -- Eastern Cape , Rural development -- South Africa -- Eastern Cape , Community development -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MSc Agric (Agricultural Economics)
- Identifier: vital:11230 , http://hdl.handle.net/10353/d1021282 , Land tenure -- South Africa -- Eastern Cape , Agricultural productivity -- South Africa -- Eastern Cape , Farms, Small -- South Africa -- Eastern Cape , Rural development -- South Africa -- Eastern Cape , Community development -- South Africa -- Eastern Cape
- Description: Smallholder agriculture contributes to poverty alleviation through food price reduction and employment creation. Smallholder farmers have the potential of creating employment because they are labour-intensive. Most small holder farmers in the Amathole District practices dual farming system i.e. crops and livestock production. However these farmers are faced by a number of constraints amongst these are land tenure security, lack of capital, drought, diseases, lack of access to markets and production inputs. The objectives of this study were: to investigate land tenure security impact on-farm investment and on-farm productivity by the smallholder farmers; to assess constraints encountered by the smallholder farmers, to identify factors influencing on-farm investment by the smallholder farmers and to identify factors influencing on-farm productivity by the smallholder farmers. Eighty smallholder farmers were interviewed using a structured questionnaire. The data was analyzed using descriptive statistics (frequency, percentages) and regression analyses. Data was for coded and processed for analysis using Statistical Package for Social Sciences (SPSS). The results revealed that generally, the household demographic characteristics have an influence on the decision to investment in the farm thus on farm productivity. These included age, gender, marital status, educational level and household size of the smallholder farmers. However the findings revealed that smallholder farmers were not much concerned with the land tenure security of the land as they see themselves as owners of these lands. The reason being that they always had access to their land and there were no perceived tenure insecurity threats. The majority of the smallholder farmers were not worried that they might lose their land in the future as they felt that their land tenure was secured. Although, the majority of farmers had some sense of security they still preferred a freehold tenure system as form of land tenure security. This suggests that there was a sense of insecurity among some of the smallholder farmers caused by their current tenure forms. Majority (66%) of the farmers held their land under freehold whilst leasehold and communal hold farmers constituted 5 % and 29 % respectively. Even though majority had freehold tenure system, they could not use their land as collateral when required for funding from the lending institutions because the title deeds were not registered in their names but those of deceased family members. As a result the majority was constrained by lack of credit and had low income. Lack of cash suggests that the farmers have difficulties in purchasing farm of the survey suggest that the household demographics and socio-economic variables may have an influence on the on-farm investment and on-farm productivity by the smallholder farmers. Furthermore, besides the challenges with land tenure, there are other factors that are likely to influence on-farm investment and on-farm productivity. The results of the survey revealed that smallholder farmers were faced with lot of challenges. These included lack of access to markets, grazing land, credit, farm implements, productions inputs and irrigation water. In addition to this the smallholder farmers were faced with both crops and livestock production constraints. Crop production constraints included lack of access to labour, transport, capital, storage facilities, pests, diseases, lack of management skills and severe drought. Livestock production was constrained by diseases, theft, attack by wild animals, lack of fence in the camps, labour, vaccines, dipping facilities too far and severe drought. For both crop and livestock production diseases and drought were major concerns for smallholder farmers since they were dependent on rainfall for their farming activities. With regards to improvements and investment there was little or not much investment that has been made by the smallholder farmers. One of the reasons mentioned by the farmers as the main cause for little or no investments is the lack of capital to make such improvements or investments. The study also employed empirical analysis through employing on-farm investment and on-farm productivity models of the study on the factors influencing the on-farm investment and on-farm productivity by the smallholder farmers in the study area. In both models, the independent variables were tested for their significance and it was found that some variables were significant whilst others were not. With regards to the dependent variable on-farm investment, household socio-economic factors such as household size, educational levels and farm size, had a positive influence in on-farm investment and were also statistically significant. On the other side, factors such as land tenure security, age, gender, household income and access to markets did not have any influence and were not statistically significant. From the perspective of on-farm productivity variables such as farm size, access to credit and access to extension services had a positive influence. However, variables such as land tenure security, age, household income, educational levels, access to implements, were negatively influencing onfarm productivity by the smallholder farmers. Key words: Land tenure security, smallholder farmers, on-farm investment & on-farm productivity
- Full Text:
- Authors: Zwelendaba, Vincent Vusumzi
- Date: 2014
- Subjects: Land tenure -- South Africa -- Eastern Cape , Agricultural productivity -- South Africa -- Eastern Cape , Farms, Small -- South Africa -- Eastern Cape , Rural development -- South Africa -- Eastern Cape , Community development -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MSc Agric (Agricultural Economics)
- Identifier: vital:11230 , http://hdl.handle.net/10353/d1021282 , Land tenure -- South Africa -- Eastern Cape , Agricultural productivity -- South Africa -- Eastern Cape , Farms, Small -- South Africa -- Eastern Cape , Rural development -- South Africa -- Eastern Cape , Community development -- South Africa -- Eastern Cape
- Description: Smallholder agriculture contributes to poverty alleviation through food price reduction and employment creation. Smallholder farmers have the potential of creating employment because they are labour-intensive. Most small holder farmers in the Amathole District practices dual farming system i.e. crops and livestock production. However these farmers are faced by a number of constraints amongst these are land tenure security, lack of capital, drought, diseases, lack of access to markets and production inputs. The objectives of this study were: to investigate land tenure security impact on-farm investment and on-farm productivity by the smallholder farmers; to assess constraints encountered by the smallholder farmers, to identify factors influencing on-farm investment by the smallholder farmers and to identify factors influencing on-farm productivity by the smallholder farmers. Eighty smallholder farmers were interviewed using a structured questionnaire. The data was analyzed using descriptive statistics (frequency, percentages) and regression analyses. Data was for coded and processed for analysis using Statistical Package for Social Sciences (SPSS). The results revealed that generally, the household demographic characteristics have an influence on the decision to investment in the farm thus on farm productivity. These included age, gender, marital status, educational level and household size of the smallholder farmers. However the findings revealed that smallholder farmers were not much concerned with the land tenure security of the land as they see themselves as owners of these lands. The reason being that they always had access to their land and there were no perceived tenure insecurity threats. The majority of the smallholder farmers were not worried that they might lose their land in the future as they felt that their land tenure was secured. Although, the majority of farmers had some sense of security they still preferred a freehold tenure system as form of land tenure security. This suggests that there was a sense of insecurity among some of the smallholder farmers caused by their current tenure forms. Majority (66%) of the farmers held their land under freehold whilst leasehold and communal hold farmers constituted 5 % and 29 % respectively. Even though majority had freehold tenure system, they could not use their land as collateral when required for funding from the lending institutions because the title deeds were not registered in their names but those of deceased family members. As a result the majority was constrained by lack of credit and had low income. Lack of cash suggests that the farmers have difficulties in purchasing farm of the survey suggest that the household demographics and socio-economic variables may have an influence on the on-farm investment and on-farm productivity by the smallholder farmers. Furthermore, besides the challenges with land tenure, there are other factors that are likely to influence on-farm investment and on-farm productivity. The results of the survey revealed that smallholder farmers were faced with lot of challenges. These included lack of access to markets, grazing land, credit, farm implements, productions inputs and irrigation water. In addition to this the smallholder farmers were faced with both crops and livestock production constraints. Crop production constraints included lack of access to labour, transport, capital, storage facilities, pests, diseases, lack of management skills and severe drought. Livestock production was constrained by diseases, theft, attack by wild animals, lack of fence in the camps, labour, vaccines, dipping facilities too far and severe drought. For both crop and livestock production diseases and drought were major concerns for smallholder farmers since they were dependent on rainfall for their farming activities. With regards to improvements and investment there was little or not much investment that has been made by the smallholder farmers. One of the reasons mentioned by the farmers as the main cause for little or no investments is the lack of capital to make such improvements or investments. The study also employed empirical analysis through employing on-farm investment and on-farm productivity models of the study on the factors influencing the on-farm investment and on-farm productivity by the smallholder farmers in the study area. In both models, the independent variables were tested for their significance and it was found that some variables were significant whilst others were not. With regards to the dependent variable on-farm investment, household socio-economic factors such as household size, educational levels and farm size, had a positive influence in on-farm investment and were also statistically significant. On the other side, factors such as land tenure security, age, gender, household income and access to markets did not have any influence and were not statistically significant. From the perspective of on-farm productivity variables such as farm size, access to credit and access to extension services had a positive influence. However, variables such as land tenure security, age, household income, educational levels, access to implements, were negatively influencing onfarm productivity by the smallholder farmers. Key words: Land tenure security, smallholder farmers, on-farm investment & on-farm productivity
- Full Text:
Impact of human dimensions on smallholder farming in the Eastern Cape Province of South Africa
- Authors: Kibirige, Douglas
- Date: 2013
- Subjects: Farms, Small -- South Africa -- Eastern Cape , Agriculture -- Economic aspects -- South Africa , Rural development -- South Africa -- Eastern Cape , Community development -- South Africa -- Eastern Cape , Entrepreneurship -- South Africa -- Eastern Cape , South Africa -- Social conditions , South Africa -- Economic conditions , DEA approach , Stochastic production frontier , Production efficiency , Human dimensions , Irrigation
- Language: English
- Type: Thesis , Doctoral , PhD (Agricultural Economics)
- Identifier: vital:11201 , http://hdl.handle.net/10353/d1007532 , Farms, Small -- South Africa -- Eastern Cape , Agriculture -- Economic aspects -- South Africa , Rural development -- South Africa -- Eastern Cape , Community development -- South Africa -- Eastern Cape , Entrepreneurship -- South Africa -- Eastern Cape , South Africa -- Social conditions , South Africa -- Economic conditions , DEA approach , Stochastic production frontier , Production efficiency , Human dimensions , Irrigation
- Description: Considering the backward and forward linkages, the agro-industrial sector contributes about 12 percent of South Africa‘s GDP, and employs approximately 8.5 million people. In the Eastern Cape Province, the sector contributes about 1.9 percent of the Provincial GDP, and over 3 million people derive their livelihoods from subsistence smallholder farming. Despite its importance, agricultural productivity has stagnated for several years across the Eastern Cape rural communities. There have been several attempts by the government to improve the agricultural productivity on smallholder farms since the end of apartheid, especially through the establishment of small-scale irrigation schemes, subsidization of farm inputs, and provision of credit facilities and enacting a number of land reform policies. In spite of the government support, most rural communities like Qamata and Tyefu are still faced with high levels of poverty affecting 76 percent and 91 percent of the population, respectively. This research evaluated the current smallholders‘ production efficiency, and the link between smallholder farmers‘ human dimensions (entrepreneurial spirit and positive psychological capital, goals and social capital, and other efficiency related variables) with production efficiency and household commercialisation index/level. The study used participatory approaches for site selection, sample selection and data collection. The analysis was based on both information from informal interviews and formal primary data collection. The Data Envelopment Analysis and Stochastic Production Frontier techniques were used to determine the relative efficiencies of individual farmers and to identify the major factors that influence the efficiency of production. Overall, 158 farmers were interviewed both at Qamata and Tyefu irrigation schemes. Descriptive statistics of this study indicated that most of the farmers were men with an average age of 61 years, and mean household size of 4 persons with the household head having at least obtained some primary school education. Farming is the major source of livelihood for smallholders with an average income of R4527.49 per crop season. Smallholders use improved seeds, fertilizers and tractor for ploughing with less use of pesticides and herbicides. Although smallholder irrigators generate more gross margins from maize and cabbage enterprises, generally both categories of farmers exhibited a low average household commercialization index for maize and cabbage at 0.41 and 0.22, respectively. Both Data Envelopment Analysis and Stochastic Production Frontier results indicate that farmers are about 98 percent technically efficient in maize and cabbage enterprises, respectively. However, farmers were allocatively inefficient as they were under-utilizing seed and pesticides while over-utilizing inorganic fertilizers. Factors that are positively associated with technical efficiency in maize production included household size, farming experience, off-farm income, use of agro-chemical; gross margins and commercialisation level of maize output. Determinants of technical efficiency in cabbage enterprise included farming experience, amount of land owned, use of agro-chemicals, group membership and gross margins accrued to cabbage sales. Farmers‘ human dimensions that could be more positively and significantly associated with production, efficiency and household commercialisation level included risk taking (hope), innovativeness (confidence) and optimism for entrepreneurial/positive psychological capital. Farmers‘ goals included self-esteem and independence, and only external social capital which were identified to be more positively and significantly associated with farmers‘ production efficiency and commercialization level. The transition from homestead subsistence to commercial oriented small-scale irrigation farming is inevitable since smallholder irrigators earn more incomes from maize and cabbage and are relatively food secure. However, the key policy options that must be considered to address inefficiencies and improved commercialization level to aid the transition include: agricultural policies geared toward attracting youth in farming, improved quality of extension services, speeding up the land reform process, and formation of cooperatives and participatory policy formulation that takes full cognizance of the farmers‘ human dimensions. Since farmers‘ human dimensions as defined in the literature and this study are not things that are amenable to direct policy intervention, they can only be modified indirectly through policy actions that affect their determinants. This means that a number of the demographic and socio-economic characteristics such as age, sex and education level of household head, farming experience, size of land owned, crop incomes, source of water for irrigation and location of the irrigation scheme that govern the way people perceive reality and respond to them must be the focus of concerted policy actions over the medium to long term.
- Full Text:
- Authors: Kibirige, Douglas
- Date: 2013
- Subjects: Farms, Small -- South Africa -- Eastern Cape , Agriculture -- Economic aspects -- South Africa , Rural development -- South Africa -- Eastern Cape , Community development -- South Africa -- Eastern Cape , Entrepreneurship -- South Africa -- Eastern Cape , South Africa -- Social conditions , South Africa -- Economic conditions , DEA approach , Stochastic production frontier , Production efficiency , Human dimensions , Irrigation
- Language: English
- Type: Thesis , Doctoral , PhD (Agricultural Economics)
- Identifier: vital:11201 , http://hdl.handle.net/10353/d1007532 , Farms, Small -- South Africa -- Eastern Cape , Agriculture -- Economic aspects -- South Africa , Rural development -- South Africa -- Eastern Cape , Community development -- South Africa -- Eastern Cape , Entrepreneurship -- South Africa -- Eastern Cape , South Africa -- Social conditions , South Africa -- Economic conditions , DEA approach , Stochastic production frontier , Production efficiency , Human dimensions , Irrigation
- Description: Considering the backward and forward linkages, the agro-industrial sector contributes about 12 percent of South Africa‘s GDP, and employs approximately 8.5 million people. In the Eastern Cape Province, the sector contributes about 1.9 percent of the Provincial GDP, and over 3 million people derive their livelihoods from subsistence smallholder farming. Despite its importance, agricultural productivity has stagnated for several years across the Eastern Cape rural communities. There have been several attempts by the government to improve the agricultural productivity on smallholder farms since the end of apartheid, especially through the establishment of small-scale irrigation schemes, subsidization of farm inputs, and provision of credit facilities and enacting a number of land reform policies. In spite of the government support, most rural communities like Qamata and Tyefu are still faced with high levels of poverty affecting 76 percent and 91 percent of the population, respectively. This research evaluated the current smallholders‘ production efficiency, and the link between smallholder farmers‘ human dimensions (entrepreneurial spirit and positive psychological capital, goals and social capital, and other efficiency related variables) with production efficiency and household commercialisation index/level. The study used participatory approaches for site selection, sample selection and data collection. The analysis was based on both information from informal interviews and formal primary data collection. The Data Envelopment Analysis and Stochastic Production Frontier techniques were used to determine the relative efficiencies of individual farmers and to identify the major factors that influence the efficiency of production. Overall, 158 farmers were interviewed both at Qamata and Tyefu irrigation schemes. Descriptive statistics of this study indicated that most of the farmers were men with an average age of 61 years, and mean household size of 4 persons with the household head having at least obtained some primary school education. Farming is the major source of livelihood for smallholders with an average income of R4527.49 per crop season. Smallholders use improved seeds, fertilizers and tractor for ploughing with less use of pesticides and herbicides. Although smallholder irrigators generate more gross margins from maize and cabbage enterprises, generally both categories of farmers exhibited a low average household commercialization index for maize and cabbage at 0.41 and 0.22, respectively. Both Data Envelopment Analysis and Stochastic Production Frontier results indicate that farmers are about 98 percent technically efficient in maize and cabbage enterprises, respectively. However, farmers were allocatively inefficient as they were under-utilizing seed and pesticides while over-utilizing inorganic fertilizers. Factors that are positively associated with technical efficiency in maize production included household size, farming experience, off-farm income, use of agro-chemical; gross margins and commercialisation level of maize output. Determinants of technical efficiency in cabbage enterprise included farming experience, amount of land owned, use of agro-chemicals, group membership and gross margins accrued to cabbage sales. Farmers‘ human dimensions that could be more positively and significantly associated with production, efficiency and household commercialisation level included risk taking (hope), innovativeness (confidence) and optimism for entrepreneurial/positive psychological capital. Farmers‘ goals included self-esteem and independence, and only external social capital which were identified to be more positively and significantly associated with farmers‘ production efficiency and commercialization level. The transition from homestead subsistence to commercial oriented small-scale irrigation farming is inevitable since smallholder irrigators earn more incomes from maize and cabbage and are relatively food secure. However, the key policy options that must be considered to address inefficiencies and improved commercialization level to aid the transition include: agricultural policies geared toward attracting youth in farming, improved quality of extension services, speeding up the land reform process, and formation of cooperatives and participatory policy formulation that takes full cognizance of the farmers‘ human dimensions. Since farmers‘ human dimensions as defined in the literature and this study are not things that are amenable to direct policy intervention, they can only be modified indirectly through policy actions that affect their determinants. This means that a number of the demographic and socio-economic characteristics such as age, sex and education level of household head, farming experience, size of land owned, crop incomes, source of water for irrigation and location of the irrigation scheme that govern the way people perceive reality and respond to them must be the focus of concerted policy actions over the medium to long term.
- Full Text:
- «
- ‹
- 1
- ›
- »