Please read the abstract in the section 08chapter7 (pp228-229) / Thesis (DPhil (Agricultural Extension))--University of Pretoria, 2007. / Agricultural Economics, Extension and Rural Development / DPhil / unrestricted

Food security is high on the development agenda in South Africa. A wide range of agricultural interventions exist across the country initiated by various stakeholders at different levels of society. While many interventions focus on production related constraints of food security, there are far fewer that focus on the integration of smallholder farmers in the supply chain. The research subject is the Agricultural Sustainable Community Investment Project (Agri-SCIP), operating on the south coast of the Kwa-Zulu Natal Province. As a demand driven alternative market model, the focus of the project is on the integration of local smallholder farmers in the fresh produce supply chain. The main research question is whether the participation of smallholder farmers in the fresh produce supply actually has actually improved for participants of the test case. Existing barriers to entry for smallholder farmers are mitigated in the project. Through a literature review five critical factors for market participation by smallholder farmers are identified, namely transport and distance to markets, product quality, product quantity, the buyer-seller relationship and market information. A literature review and empirical data are applied to test the impact of the Agri-SCIP project on the participation of smallholder farmers in the fresh produce supply chain based on these five critical factors. The data indicate that many of the existing barriers to entry in the fresh produce supply chain for the smallholder farmers are mitigated, and have been shifted to a collectively owned co-operative. Therefore, as an alternative market model, Agri-SCIP has the potential to provide a sustainable solution for smallholder development in South Africa with a strong focus on supply chain participation. The development of a strong smallholder farmers base and the development of smallholder farmers into semi-commercial farmers are potential long term results of the Agri-SCIP alternative market model.

The broad objective of the study was to investigate the limiting factors that prevent a breakthrough of emerging farmers to commercial agricultural farming industry. The research objectives were to describe the demographic characteristics such as age, education, farming skills and experience; determine the required support services needed; and inform the limiting factors that prevent breakthrough of emerging farmers to enter commercial agricultural industry. The study was conducted in King William’s Town area through structured questionnaires administered by the researcher. A sample of 50 emerging farmers was drawn in the area. The majority of households in the area depend on subsistence farming for household survival. Results indicated that emerging farmers are faced with poor physical infrastructure such as implements to better their production as well as low education levels which results as an inability to interpret market information to be used in production planning. It is also clear that the farmers face a lack of market infrastructure, poor roads, lack of market information, lack of transportation to markets and high transportation costs. The majority of the farmers were old and the youth was not engaged in agriculture. The findings showed that there is an insufficient role from government with regards to emerging farmer support and providing the required infrastructure to access markets or improving rural infrastructure. As a result the majority of the farmers are trapped in a cycle of poverty. The following policy recommendations are suggested: Financial services such as credit must be made available to emerging farmers at reasonable interest rates such as low interest rate subsidies to emerging farmers up until commercialisation. The requirements for emerging farmers to access loans, funding or credit should be restructured or adjusted to the ability of the farmer to repay the credit rather than the availability of title deeds or assets as collateral. Extension officers should regularly visit the localities were emerging farmers are farming have a better understanding of their farming areas, farming methods and improve their communication with the farmers. Lastly the land reform initiatives should be re-organised or developed if necessary to ensure efficient re-allocation of land. The policies should be developed to focus on both the individual farm plots and the collective rights.

This study is an exploratory analysis of the impact and accessibility of formal agricultural credit to small-scale farmers, based on data collected from a sample of farmers in two regions of South Africa’s Limpopo Province. The main aims of the research were to: -- Determine the impact of credit and its shadow price. -- Investigate the efficiency of the rural financial market. -- Determine the characteristics and factors that influence the accessibility of credit in the small-scale farming sector, as well as the differential access to credit within the sector. The results of the study indicate that productivity differs between borrowers and non-borrowers. The difference of 40% in favour of borrowers is caused both by credit use (21%) and the farmers’ inherent characteristics. Thus, credit can increase a randomly selected farmer’s output b 21 per cent. The marginal credit return rate is 2.10 at zero loan, implying a 110 per cent shadow price of capital. The hypothesis that non-borrowers are credit constrained is empirically supported. The marginal credit effect at mean loan size is 1.35, indicating that the average loan size is below income-maximising size. This implies that loan-quantity rationing is still prevalent among borrowers, and that it is possible that borrowers may still be liquidity constrained but to a lesser degree than non-borrowers. The estimated shadow-price of credit (35%) exceeds the average interest rate (18%) also suggesting that the rural credit markets in the survey areas are not o9perating in the most efficient manner. It also indicates that the farmers in the study area can afford to pay the prevailing market interest rate. About 29.4% of the farmers sampled for the study had access to formal credit. More than 57% of the credit used by small farmers comes from informal credit. Access to formal credit is also highly skewed, and shows greater ease of access for large farm size than smaller groups. Factors such as area cultivated, family labour, title deed, non-farm income, remittances and pensions (social benefits), awareness of the availability of credit, and repayment records are found to be important variables in predicting accessibility of credit to small scale farmers in the study area. The main findings are: -- Small-scale farmers have limited and differential access to credit; those with holdings approaching commercial size are better-off. -- Rural agricultural financial markets are inefficient. Borrowers and non-borrowers alike are credit constrained. -- Credit is not too expensive to be used profitably; it effects on productivity can improve the welfare of small-scale farmers. In view of these findings, the following policy proposals are suggested. Firstly, the policy of not providing interest rate subsidies for loans is justified. Credit subsidisation, with its unfortunate history, should be avoided. Secondly, there is the need to restructure costly and poorly performing rural financial institutions to effectively and efficiently provide the needed services to its clientele. To ensure rapid credit delivery, it is also imperative that agricultural institutions are encouraged to decentralise their activities. Expansion of banking outlets is one of the most important surge factors affecting financial services. In addition, policy makers should also focus on critical elements of the financial infrastructure, such as the information system and training facilities, which are necessary for the development of the rural financial system in South Africa. Finally, the threshold for entry into the financial market is simply too high for many. Hence, creating a conducive environment in rural areas is one of the areas that will require more attention. Investment in rural infrastructure will also act as catalyst for the establishment of some of the missing institutions that cause market failures in rural financial markets. / Thesis (PhD (Agricultural Economics))--University of Pretoria, 2006. / Agricultural Economics, Extension and Rural Development / unrestricted

Thesis (M. Dev.) --University of Limpopo, 2013 / Rural areas of Zimbabwe suffered acute shortage of banking services. Conventional banks feared high transaction costs and lack of collateral associated with this market segment. This research aimed at evaluating impact of microfinance on rural farming sector. Finding out the general banking and microfinance situation, appraising scheme impact and making recommendations were the research’s objectives. A descriptive research design was used. A population of 3,400 members constituting 289 Investment Groups (IGs) was used. Quota and purposive sampling were used to select 20 IGs and 154 individual respondents. Sample survey, Focus Group Discussions (FGD) and Key Informant Interviews (KII) were data collection methods. The survey findings showed that the five Department For International Development’s (DFID’s) Sustainable Livelihoods Approach (SLA) asset bases increased more for the treatment than the control groups, signifying microfinance impact. Wealth ranking, meant to triangulate survey results, depicted upward mobility of groups; old ones transcending to rich categories while the new moved into top poor rank, also demonstrating impact. Further, scheme achieved women empowerment basing on their numerical predominance and improved self-confidence, signifying impact. The study recommends that Farmers’ Association of Community self-Help Investment Groups (FACHIG) resuscitated its savings component using the Self-Help Group (SHG) thrift approach to ensure scheme sustainability. In addition, climate change, a phenomenon which increased droughts, could have dampened impact. However, the research did not delve into this area, compelling a future study.

Thesis (M. Sc. Agriculture (Agricultural Economics)) -- University of Limpopo, 2021 / Small-scale farmers are the drivers of many countries in Africa and play an important role in livelihood creation among the poor in rural areas (DAFF, 2012). The efficient use of scarce resources in promoting agricultural production has encouraged a considerable amount of research in determining efficiency differentials of small-scale farmers (Chiona, 2011); especially those engaged in maize as a staple commodity in many parts of the world. The study examined the effect of access to tractor service on technical efficiency of small-scale maize farmers following the implementation of the Masibuyele Emasimini programme in the Mpumalanga province. The objectives of the study were to: (i) Compare and identify the socio-economic characteristics of small-scale maize farmers in the three selected districts of the study, (ii) analyse the socio-economic factors influencing small-scale maize farmers’ access to tractor service, and to (iii) measure technical efficiency of farmers who have access to tractor service. The data collection was carried out in three districts of the Mpumalanga province, that is, Ehlanzeni, Nkangala and Gert Sibande. Farmers producing maize were purposively selected for the study because maize is the most staple food produced in the province, especially on a small-scale level. To effectively cover the study area, a simple random technique was used for sampling with a semi-structured questionnaire administered to 101 farmers. The three districts are heterogeneous in technical aspects, and were therefore treated separately in terms of data collection, analysis and report of findings. The data were further analysed using descriptive statistics, the logistic regression and Cobb-Douglas production function model to address objective one, two and three mentioned above, respectively. The results of the logistic regression model indicated that out of the 9 (Nine) socio-economic variables included in the analysis, 6 (Six) of them (Farmer’s association, irrigation, farmer’s level of education, gender, ownership of land and household size) were found to be significant and influencing access to v tractor service by small-scale maize farmers. Technical efficiency levels revealed that farmers with access to tractor service were more technically efficient than those without access in all districts of the Mpumalanga province. For example, the average technical efficiency for small-scale farmers with access to tractor service in the Ehlanzeni district was 0.68; about 41% higher than those without access with an average technical efficiency of about 0.27. The Cobb-Douglas results on the other hand, revealed that farmers in the Mpumalanga province are experiencing technical inefficiency in maize production due to decreasing returns to scale. Access to tractor service was also negatively insignificant towards maize production in both the Ehlanzeni and Nkangala district, and was found to have a positive but insignificant effect in Gert Sibande. Policy implications are that to improve the efficiency of tractor service (rendered by the Masibuyele Emasimini programme) towards maize production; government should focus on significant factors influencing the access of the following by small-scale maize farmers and the factors are machinery, irrigation, gender, and ownership of land, farmer’s level of education, farmer’s association, and household and land size per district. / National Research Foundation (NRF)

Thesis (MScAgric (Agricultural Economics)--University of Stellenbosch, 2005. / This study discusses the importance of home production for home consumption (HPHC) and its economic contribution to South African Agriculture. The Income and Expenditure survey 2000 (IES 2000) dataset is used to draw conclusions in this study. IES 2000 contains a section on HPHC. HPHC aims to capture information on the quantities and values of home produce consumed and sold to the market. Home production often forms an important part of the livelihood strategies of rural households in developing countries. The study focuses on rural ...

Thesis (MPA.) -- University of the North, 2001 / Refer to document

Thesis (LLM. (Management and Law)) -- University of Limpopo, 2013 / Rural areas of Zimbabwe suffered acute shortage of banking services. Conventional banks feared high transaction costs and lack of collateral associated with this market segment. This research aimed at evaluating impact of microfinance on rural farming sector. Finding out the general banking and microfinance situation, appraising scheme impact and making recommendations were the research’s objectives. A descriptive research design was used. A population of 3,400 members constituting 289 Investment Groups (IGs) was used. Quota and purposive sampling were used to select 20 IGs and 154 individual respondents. Sample survey, Focus Group Discussions (FGD) and Key Informant Interviews (KII) were data collection methods. The survey findings showed that the five Department For International Development’s (DFID’s) Sustainable Livelihoods Approach (SLA) asset bases increased more for the treatment than the control groups, signifying microfinance impact. Wealth ranking, meant to triangulate survey results, depicted upward mobility of groups; old ones transcending to rich categories while the new moved into top poor rank, also demonstrating impact. Further, scheme achieved women empowerment basing on their numerical predominance and improved self-confidence, signifying impact. The study recommends that Farmers’ Association of Community self-Help Investment Groups (FACHIG) resuscitated its savings component using the Self-Help Group (SHG) thrift approach to ensure scheme sustainability. In addition, climate change, a phenomenon which increased droughts, could have dampened impact. However, the research did not delve into this area, compelling a future study.

M. Tech. Agriculture / Shortly after World War two (WWII), the South African government responded to the mounting food production crisis in the homelands by introducing public tractor services. Establishment of irrigation schemes and provision of public tractor services for use by smallholders were two important government-initiated modernisation projects in the homelands. It was in line with the idea of modernisation that smallholder irrigation schemes were the prime target for public tractor services, and this lead to the rapid abandonment of the use of animal draught for cultivation on these schemes. By the time public tractor services were completely dismantled, cultivation on smallholder irrigation schemes had become almost entirely dependent on tractor draught. Thereafter, hiring the services of privately owned tractor enterprises became the principal way in which farmers on smallholder irrigation schemes in Limpopo Province cultivated their plots. The rising cost of hiring private tractors placed financial stress on the cropping enterprises of smallholder irrigators, generating interest in alternatives that were more affordable. Animal draught represents an attractive alternative to tractor draught. Whereas prevailing economic circumstances on smallholder irrigation schemes favour the adoption of cultivation systems that are cheaper than those offered by private tractor enterprises, it is not known whether animal draught land preparation enterprises are an appropriate alternative to the existing tractor enterprises from an economic and social perspective. In order to resolve this knowledge problem, the current study was done with the following two main objectives: to determine the profitability of the different types of land preparation enterprises operating on smallholder canal irrigation schemes in Vhembe District Municipality; and to determine the social acceptability of these different types of land preparation enterprises by measuring the perceptions of the quality of the cultivation services provided by these enterprises among plot holders on these schemes.