Market participation and welfare of smallholder farmers in the Eastern Cape Province South Africa
- Lesala, Mahali Elizabeth https://orcid.org/0000-0001-9921-2190
- Authors: Lesala, Mahali Elizabeth https://orcid.org/0000-0001-9921-2190
- Date: 2021-06
- Subjects: Farms, Small , Economic development -- South Africa , Agriculture -- Economic aspects -- South Africa
- Language: English
- Type: Doctoral theses , text
- Identifier: http://hdl.handle.net/10353/20916 , vital:46745
- Description: The low market participation of smallholder farmers in markets has received enormous attention from scholars, both in the country and the Eastern Cape Province. However, it is not clear how low their market participation is including its implications on farmer’s welfare. The purpose of the study was to determine the extent to which smallholder farmers in the homelands of the Eastern Cape participate in output markets and assess how their participation in markets has affected wellbeing of their households. This information will have important practical implications for policy regarding appropriate pathways for poverty alleviation and livelihoods improvements in the rural areas of the Eastern Cape Province. Three irrigation schemes; Qamata, Zanyokwe and Tyefu irrigation schemes were selected for this study. A sample of 210 smallholder irrigators were interviewed by means of a close-ended questionnaire. The data were analysed by means of descriptive statistical tools, the multiple-level choice models and the Propensity Score Matching (PSM) technique. SPSS and STATA computer programmes were used to carry out all the estimations. The analysis established that, although agriculture is the primary activity for rural livelihoods, it is not the main contributor to family income. Rather, remittances and social grants were the dominant sources of household income in the Qamata, Zanyokwe and Tyefu areas. From the standpoint of market, maize and potatoes are the most popular crops, but potatoes dominate the market. This result confirms that maize is the staple crop and therefore mostly grown for home consumption while production of potatoes is market-oriented. The Market Participation Index (MPI) revealed that farmers sell at least 55 percent of their farm produce, implying that farmers have made some transition from subsistence to semi-commercial farming. However, farmers’ priority still remains food self-sufficiency and market participation only takes place after satisfying their home food needs. The results revealed that the significant factors influencing the farmers’ decisions and their extent of participation in output markets were the age, gender, marital status of the household head, primary occupation of household head, size of farm cultivated, government financial support, access to extension services and farmer’s membership of cooperatives. Concerning the impact of output market participation on welfare of smallholders, the Average Treatment on the Treated (ATT) as the measure of change revealed that participation in output markets has a positive impact on welfare of the smallholder farmers through increased incomes. Farmers who participated in output market were at least R838.44 better off than those who did not participate in markets although social grants and remittances made significantly higher contribution to household welfare. The study suggests that despite some improvements in income of market participants, the standards of living of the rural households are still far from what would be considered optimal. Crop farming evidently contributes less than desired, hence the persistence of the widespread poverty. It is urgent to focus interventions on improving agricultural productivity while widening strategies for improving rural livelihoods beyond agriculture to diversify the choices open to rural dwellers. , Thesis (PhD) -- Faculty of Science and Agriculture, 2021
- Full Text:
- Authors: Lesala, Mahali Elizabeth https://orcid.org/0000-0001-9921-2190
- Date: 2021-06
- Subjects: Farms, Small , Economic development -- South Africa , Agriculture -- Economic aspects -- South Africa
- Language: English
- Type: Doctoral theses , text
- Identifier: http://hdl.handle.net/10353/20916 , vital:46745
- Description: The low market participation of smallholder farmers in markets has received enormous attention from scholars, both in the country and the Eastern Cape Province. However, it is not clear how low their market participation is including its implications on farmer’s welfare. The purpose of the study was to determine the extent to which smallholder farmers in the homelands of the Eastern Cape participate in output markets and assess how their participation in markets has affected wellbeing of their households. This information will have important practical implications for policy regarding appropriate pathways for poverty alleviation and livelihoods improvements in the rural areas of the Eastern Cape Province. Three irrigation schemes; Qamata, Zanyokwe and Tyefu irrigation schemes were selected for this study. A sample of 210 smallholder irrigators were interviewed by means of a close-ended questionnaire. The data were analysed by means of descriptive statistical tools, the multiple-level choice models and the Propensity Score Matching (PSM) technique. SPSS and STATA computer programmes were used to carry out all the estimations. The analysis established that, although agriculture is the primary activity for rural livelihoods, it is not the main contributor to family income. Rather, remittances and social grants were the dominant sources of household income in the Qamata, Zanyokwe and Tyefu areas. From the standpoint of market, maize and potatoes are the most popular crops, but potatoes dominate the market. This result confirms that maize is the staple crop and therefore mostly grown for home consumption while production of potatoes is market-oriented. The Market Participation Index (MPI) revealed that farmers sell at least 55 percent of their farm produce, implying that farmers have made some transition from subsistence to semi-commercial farming. However, farmers’ priority still remains food self-sufficiency and market participation only takes place after satisfying their home food needs. The results revealed that the significant factors influencing the farmers’ decisions and their extent of participation in output markets were the age, gender, marital status of the household head, primary occupation of household head, size of farm cultivated, government financial support, access to extension services and farmer’s membership of cooperatives. Concerning the impact of output market participation on welfare of smallholders, the Average Treatment on the Treated (ATT) as the measure of change revealed that participation in output markets has a positive impact on welfare of the smallholder farmers through increased incomes. Farmers who participated in output market were at least R838.44 better off than those who did not participate in markets although social grants and remittances made significantly higher contribution to household welfare. The study suggests that despite some improvements in income of market participants, the standards of living of the rural households are still far from what would be considered optimal. Crop farming evidently contributes less than desired, hence the persistence of the widespread poverty. It is urgent to focus interventions on improving agricultural productivity while widening strategies for improving rural livelihoods beyond agriculture to diversify the choices open to rural dwellers. , Thesis (PhD) -- Faculty of Science and Agriculture, 2021
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Small-scale farmers' participation in planning and implementation of farmer support programmes in Amahlathi Local Municipality, Eastern Cape Province, South Africa
- Authors: Makunga, Phendulwa Zikhona
- Date: 2017
- Subjects: Agricultural development projects , Farms, Small -- South Africa -- Eastern Cape , Agriculture -- Economic aspects -- South Africa
- Language: English
- Type: Thesis , Masters , MSc
- Identifier: http://hdl.handle.net/10353/6248 , vital:29529
- Description: The democratic government in South Africa has brought about several policies which were initiated for rural development, and one of the government’s strategies was to involve the agricultural sector. Farmer Support Programmes (FSPs) were developed to assist small-scale farmers to become commercial farmers. The study looked at the participation of small scale farmers in the planning and implementation of the FSPs in the Amahlathi Local Municipality. 108 small scale farmers were selected using a non-random purposive probability and twelve farmers’ organisations. Semi-structured questionnaires and semi-structured interviews were used as the data collection tool and method respectively. The data analysis used was a descriptive analysis and a thematic analysis. The results revealed that the farmers have a positive perception towards the support programmes being helpful in their farming needs. The positive perception was especially on the extension and advisory services, dipping and vaccination programme, and the supply and funding of inputs and assets. However, the results revealed that there was no significant difference between gender and the perception of the farmers when a chi square test of association was performed. The results also revealed that the farmers and farmers’ organisations were not involved in the planning of the programmes by the government. It is therefore recommended that for the success of the FSP and for economic growth in the rural areas, the government has to avoid using a top-down approach when developing these programmes, and instead consult the farmers and the farmers’ organisations to know the specific needs of the farmers in their farming practices.
- Full Text:
- Authors: Makunga, Phendulwa Zikhona
- Date: 2017
- Subjects: Agricultural development projects , Farms, Small -- South Africa -- Eastern Cape , Agriculture -- Economic aspects -- South Africa
- Language: English
- Type: Thesis , Masters , MSc
- Identifier: http://hdl.handle.net/10353/6248 , vital:29529
- Description: The democratic government in South Africa has brought about several policies which were initiated for rural development, and one of the government’s strategies was to involve the agricultural sector. Farmer Support Programmes (FSPs) were developed to assist small-scale farmers to become commercial farmers. The study looked at the participation of small scale farmers in the planning and implementation of the FSPs in the Amahlathi Local Municipality. 108 small scale farmers were selected using a non-random purposive probability and twelve farmers’ organisations. Semi-structured questionnaires and semi-structured interviews were used as the data collection tool and method respectively. The data analysis used was a descriptive analysis and a thematic analysis. The results revealed that the farmers have a positive perception towards the support programmes being helpful in their farming needs. The positive perception was especially on the extension and advisory services, dipping and vaccination programme, and the supply and funding of inputs and assets. However, the results revealed that there was no significant difference between gender and the perception of the farmers when a chi square test of association was performed. The results also revealed that the farmers and farmers’ organisations were not involved in the planning of the programmes by the government. It is therefore recommended that for the success of the FSP and for economic growth in the rural areas, the government has to avoid using a top-down approach when developing these programmes, and instead consult the farmers and the farmers’ organisations to know the specific needs of the farmers in their farming practices.
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The implications of smallholder agricultural productivity growth for poverty alleviation in post-apartheid South Africa
- Authors: Dwesini, Nontembiso Eugenia
- Date: 2015
- Subjects: Agriculture -- Economic aspects -- South Africa , Agricultural assistance -- South Africa , Sustainable development -- South Africa , Agricultural productivity -- South Africa
- Language: English
- Type: Thesis , Masters , MSc Agric (Agricultural Economics)
- Identifier: vital:11232 , http://hdl.handle.net/10353/d1021286 , Agriculture -- Economic aspects -- South Africa , Agricultural assistance -- South Africa , Sustainable development -- South Africa , Agricultural productivity -- South Africa
- Description: The adoption of the Millennium Development Goal 1(MDG 1) of reducing the rate of poverty to half of the 1990-level by 2015 has been a challenge faced by the developing countries including South Africa. The foundations of democracy have to be continuously assessed so that the obstacles faced by South Africa as it strives towards sustainable democracy are addressed. With agricultural sector identified as having the potential to alleviate poverty compared to the mining sector, manufacturing sector and services sector, it faced the challenges that include: (i) accelerating agricultural productivity; (ii) reducing poverty and vulnerability; and (iii) narrowing rural-urban income disparities. The identification of the critical linkages in the agricultural development framework allows for effective strategic planning, effective decision making and appropriate policy formulation. Expectedly, the sector has attracted considerable fiscal policy interest and public investments. The primary aim of this research study is to assess the extent to which smallholder agricultural productivity growth alleviates poverty in South Africa. The statistical and econometric techniques namely; Johansen technique of co-integration analysis (1995), analysis of covariance and correlation, Vector Error Correction Model, are employed in this research study. The data description, data sources, expected relationship between variables and indexation of data are done. The drivers and cause-effect relationships between agriculture and poverty reduction are investigated. The employed models allowed for an exploration of plausible future growth in agricultural elasticity of poverty and the possibility of reducing poverty level in South Africa. The data is obtained from the National Department of Agriculture from 1994 -2013. The analysis of the results strongly confirms that agricultural productivity has a significant inverse relationship to the levels of poverty in South Africa. The outcome of the analysis will contribute to improved decision making on the use of public funds in agriculture.
- Full Text:
- Authors: Dwesini, Nontembiso Eugenia
- Date: 2015
- Subjects: Agriculture -- Economic aspects -- South Africa , Agricultural assistance -- South Africa , Sustainable development -- South Africa , Agricultural productivity -- South Africa
- Language: English
- Type: Thesis , Masters , MSc Agric (Agricultural Economics)
- Identifier: vital:11232 , http://hdl.handle.net/10353/d1021286 , Agriculture -- Economic aspects -- South Africa , Agricultural assistance -- South Africa , Sustainable development -- South Africa , Agricultural productivity -- South Africa
- Description: The adoption of the Millennium Development Goal 1(MDG 1) of reducing the rate of poverty to half of the 1990-level by 2015 has been a challenge faced by the developing countries including South Africa. The foundations of democracy have to be continuously assessed so that the obstacles faced by South Africa as it strives towards sustainable democracy are addressed. With agricultural sector identified as having the potential to alleviate poverty compared to the mining sector, manufacturing sector and services sector, it faced the challenges that include: (i) accelerating agricultural productivity; (ii) reducing poverty and vulnerability; and (iii) narrowing rural-urban income disparities. The identification of the critical linkages in the agricultural development framework allows for effective strategic planning, effective decision making and appropriate policy formulation. Expectedly, the sector has attracted considerable fiscal policy interest and public investments. The primary aim of this research study is to assess the extent to which smallholder agricultural productivity growth alleviates poverty in South Africa. The statistical and econometric techniques namely; Johansen technique of co-integration analysis (1995), analysis of covariance and correlation, Vector Error Correction Model, are employed in this research study. The data description, data sources, expected relationship between variables and indexation of data are done. The drivers and cause-effect relationships between agriculture and poverty reduction are investigated. The employed models allowed for an exploration of plausible future growth in agricultural elasticity of poverty and the possibility of reducing poverty level in South Africa. The data is obtained from the National Department of Agriculture from 1994 -2013. The analysis of the results strongly confirms that agricultural productivity has a significant inverse relationship to the levels of poverty in South Africa. The outcome of the analysis will contribute to improved decision making on the use of public funds in agriculture.
- 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:
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