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
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
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