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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
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Effect of irrigation farming potential on commercialization of smallholder farming in the Eastern Cape Province of South Africa

- Sipoko, Nomava

Authors: Sipoko, Nomava
Date: 2014
Subjects: Irrigation farming -- South Africa -- Eastern Cape , Farms, Small -- South Africa -- Eastern Cape , Agriculture -- Economic aspects
Language: English
Type: Thesis , Masters , MSc Agric (Agricultural Economics)
Identifier: vital:11218 , http://hdl.handle.net/10353/d1019772 , Irrigation farming -- South Africa -- Eastern Cape , Farms, Small -- South Africa -- Eastern Cape , Agriculture -- Economic aspects
Description: Enhancement of smallholder production to improve rural livelihood is an important policy goal in developing countries. Research findings indicate that smallholder production can be improved through establishment of new smallholder irrigation schemes, and the rehabilitation of abandoned ones. Smallholder irrigation has a potential to contribute significantly in shifting smallholder farming to commercial farming. Although the roles of irrigating farmers are clearly defined, smallholder farmer’s development results in South Africa have been disappointing. The performance of smallholder irrigation is unsatisfactory. Smallholder irrigation has failed to improve the standard of living and livelihoods of smallholder farmers in South Africa. The majority of farmers are still producing at subsistence level. This study, therefore, aimed to contribute to smallholder irrigation literature in two ways; firstly by evaluating the extent of irrigation participation of smallholder farmers towards commercialization in the study areas. The study also examined the determinants of irrigation participation among smallholder farmers. A sample of 80 households was drawn by random sampling of smallholders in four villages as follows: 40 respondents from Mgxabakazi and Dinizulu villages and 40 respondents from Ncorha flats and Tshatshu. The sample included both irrigators and non-irrigators. Descriptive analysis shows that irrigators had better production and wellbeing than non-irrigators. For the inferential analysis of the data, two models were employed namely, Binary Logistic Regression Model (BRM) and Truncated Regression Model (TRM). The Binary Regression model was used to predict the probability of farmers participating in irrigation schemes. Whether or not a farmer participated in irrigation was introduced as the binary dependent or response variable that could be explained by a range of explanatory or predictor variables such as source of water, land size, ability to sustain business, membership in the scheme, market access, availability of the irrigation system, willingness to irrigate, farming type commercial or subsistence and institutional support services. From these predictor variables, being part of the irrigation, ability to sustain business and market were found to be factors influencing farmer’s decision to participate. The second model required the in-depth investigation of the influence of irrigation participation as reflected by extent of commercialization. In order to do this, the level of commercialization was measured by calculating Household Commercialization Index. Then the truncated regression model (TR) was used to test the factors that affect the level of commercialization for the farmers who are participating in the irrigation schemes.Age, irrigated land, willingness to commercialize and gross value of production were found to exert strong influence on the level of commercialization among farmers participating in irrigation. The study recommends that investments in smallholder irrigation should receive high priority, with emphasis on collective action, promotion of contract farming and strengthening the support services from government and the private sector, and ensuring enhanced access to market to all farmers.
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