A Typology of the Level of Market Participation among Smallholder Farmers in South Africa: Limpopo and Mpumalanga Provinces

Smallholder farmers face several challenges that limit their access to markets and prevent them from taking advantage of market opportunities. This study sought to provide observed information on households’ involvement in the output market and to analyse the determinants of the level of market participation among smallholder farmers in South Africa. Data (secondary) for this study were collected from a total of 1520 respondents who were selected through stratified random sampling. Descriptive statistics, t-test and a double-hurdle model were used to analyse factors influencing smallholder farmers’ decisions regarding participation in the agricultural market. The first-hurdle equation of the double-hurdle model showed that gender of the household, family member working on the farm, wealth index, and agricultural assistance had a positive significant impact on the decision of smallholder farmers to participate in the market, while household age and family member with HIV had a negative significant impact. The results of the second-hurdle model showed marital status, educational level of household, wealth index, and access to agricultural assistance had a negative significant effect on the extent of market participation among smallholder farmers, while household size, household age, and family member with HIV had a positive significant impact. The suggestions emanating from the results as to what factors need to be addressed to encourage smallholder farmers to participate in the market indicate that there is a need for government to hire sufficient and skilled extension workers who understand the market related issues. With the help of extension workers and policymakers, government need to organize smallholder farmers into groups that are easy to manage, train, and support. Smallholder farmers’ groups should have their farmers registered, visible, and easily accessible for coordinated government support services. They also need to do more workshops in rural areas to encourage young people to be involved in agriculture. This will lead to sustainable production, alleviation of poverty, improvement of the economy, and food security.

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The impact of social grant dependency on smallholder maize producers’ market participation in South Africa: Application of the double-hurdle model

South African Journal of Economic and Management Sciences ◽

10.4102/sajems.v20i1.1474 ◽

2017 ◽

Vol 20 (1) ◽

Cited By ~ 4

Author(s):

Sikhulumile Sinyolo ◽

Maxwell Mudhara ◽

Edilegnaw Wale

Keyword(s):

South Africa ◽

Rural Areas ◽

Smallholder Farmers ◽

Hurdle Model ◽

Market Participation ◽

Double Hurdle Model ◽

Social Grants ◽

Double Hurdle ◽

Social Grant ◽

The Impact

Background: Social grants have become an increasingly popular means of improving the welfare of poor households in South Africa and beyond. While the goals of these transfers are to alleviate current poverty as well as to improve human capital capacity, they also have unintended effects, positive or negative, on beneficiary households. A question that has not been adequately addressed in the literature is the role that social grants play in the efforts to commercialise smallholder farming.Aim: The aim of this study was to examine the impact of social grant dependency on the incentives of smallholder maize producers to participate in the market.Setting: The study was done in the rural areas of four districts (Harry Gwala, Umzinyathi, Umkhanyakude and Uthukela) in the KwaZulu-Natal province, South Africa.Methods: The study adopted a quantitative research design. A total of 984 households were randomly selected from the four districts, of which 774 had planted maize in the previous season. The analysis was done on the 774 farmers who had planted maize. The double-hurdle model was used for statistical analysis.Results: The results show a negative association between social grant dependency and market participation, suggesting that social grant-dependent households are more subsistent, producing less marketable surplus. Moreover, households with access to social grants sold less quantities of maize in the market, indicating reduced selling incentives.Conclusion: The study indicates that social grants reduce the incentives of smallholder farmers to commercialise their production activities. The results suggest that, while policies aimed at reducing transaction costs would increase smallholder market participation, attention should be paid on how to reduce social grants’ dis-incentive effects. To reduce spill over effects to unintended household members, the study recommends offering part of the grant as ‘in-kind support’, which is specific to the intended individual beneficiary.

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Adoption of On-Farm Plantation Forestry by Smallholder Farmers in Uganda

Journal of Sustainable Development ◽

10.5539/jsd.v9n2p153 ◽

2016 ◽

Vol 9 (2) ◽

pp. 153 ◽

Cited By ~ 2

Author(s):

I. Kiyingi ◽

A. Edriss ◽

M. Phiri ◽

M. Buyinza ◽

H. Agaba

Keyword(s):

Smallholder Farmers ◽

Household Head ◽

Skills Training ◽

Plantation Forestry ◽

Hurdle Model ◽

Farm Forestry ◽

Double Hurdle Model ◽

Factors Influencing ◽

Double Hurdle ◽

On Farm

<p>The study assessed the factors influencing adoption and intensity of adoption of on-farm plantation forestry by comparing results from a censored Tobit model and a Double-hurdle model. Analysis indicated that determinants of adoption and intensity of adoption of on-farm plantation forestry are different, thus indicating a double-hurdle process. Results from the double-hurdle model indicated that size of landholding, secondary school education, forestry skills training, extension services and farmers’ perceptions significantly explain the variation in the decision to invest in on-farm plantation forestry. On the other hand, gender of household head and size of landholding influenced the intensity of adoption. This study highlights some of the areas that should be considered in developing adoption strategies for on-farm plantation forestry. It also highlights the importance of farmers’ perceptions in influencing adoption of farm forestry. The study suggests that since the factors influencing adoption and intensity of farm forestry adoption are made separately, it is important that both stages are considered in developing adoption strategies for farm forestry.</p>

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Adoption of NPS Fertilizer on Sorghum Crop Production by Smallholder Farmers in Gemechis and Mieso Districts of West Hararghe Zone, Oromia Regional State, Ethiopia

Journal of Materials Science Research ◽

10.5539/jmsr.v9n2p46 ◽

2020 ◽

Vol 9 (2) ◽

pp. 46

Author(s):

Muhammed Shako Hiko

Keyword(s):

Smallholder Farmers ◽

Econometric Models ◽

Inorganic Fertilizer ◽

Farm Income ◽

Hurdle Model ◽

Economic Factors ◽

Adoption Decision ◽

Double Hurdle Model ◽

Double Hurdle ◽

Socio Economic Factors

The adoption of inorganic fertilizer such as NPS which is concerned by development clients and government is different from one farmer to another farmer and this makes productivity of agricultural crops to vary from one plot to another plot due to socio-economic, institutional and other factors. Therefore, this study was intended to know the socio-economic factors that significantly affect utilization of inorganic fertilizer NPS. Primary data was collected from 201 sampled households of selected districts. Secondary data was collected from stakeholders related with production of sorghum and inorganic fertilizer NPS in the study areas. In the sampling procedure, two stage simple random sampling was used. In the first stage, kebeles were randomly taken from total kebeles in the two districts. In the second stage, households were randomly selected from the selected kebeles. Data was analyzed using descriptive, inferential statistics and econometric models methods of data analysis. In econometric models Double Hurdle model was use to know factors affect adoption decision of inorganic fertilizer NPS and intensity use of inorganic fertilizer NPS. Double Hurdle model result confirms that district of the household, education level, family size, extension visit, expectation of the coming rainfall by the household, number of farm plot owned, total farm land owned and off/non-farm income earned by the household significantly affect adoption decision inorganic fertilizer NPS. Double hurdle model result also reveals that, district of the household, livestock holding, number of farm plot owned, participation on agricultural training by the household significantly affect intensity use of inorganic fertilizer NPS. Government and concerned stakeholders should give attention on these significant socio-economic factors so that utilization inorganic fertilizer can be improved to sorghum crop productivity.

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Private rates of return to education of Africans in South Africa for 1995: a Double Hurdle model

Development Southern Africa ◽

10.1080/0376835032000124510 ◽

2003 ◽

Vol 20 (4) ◽

pp. 515-528 ◽

Cited By ~ 1

Author(s):

Philip AE Serumaga-Zake ◽

Willem A Naude´

Keyword(s):

South Africa ◽

Return To Education ◽

Hurdle Model ◽

Rates Of Return ◽

Double Hurdle Model ◽

Double Hurdle

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Determinants of Off-Farm Income among Smallholder Rice Farmers in Northern Ghana: Application of a Double-Hurdle Model

Advances in Agriculture ◽

10.1155/2019/7246176 ◽

2019 ◽

Vol 2019 ◽

pp. 1-7 ◽

Cited By ~ 2

Author(s):

Benjamin Tetteh Anang ◽

Richard W. N. Yeboah

Keyword(s):

Rural Areas ◽

Smallholder Farmers ◽

Northern Ghana ◽

Farm Income ◽

Hurdle Model ◽

Income Diversification ◽

Farm Work ◽

Double Hurdle Model ◽

Rice Farmers ◽

Double Hurdle

Income diversification by farm households has gained the attention of researchers and policy makers due to its commonness especially in developing countries. This study sought to empirically investigate the determinants of off-farm income among smallholder farmers in northern Ghana using a sample of 300 rice farmers. A double-hurdle model was used to determine the factors influencing participation in off-farm work as well as the predictors of actual amounts earned from working outside the farm. The results revealed that gender, farming experience, years of education, and access to credit are the factors determining participation in off-farm work while farming experience, years of education, and geographical location are the determinants of income from off-farm work. The paper concludes that measures to enhance rural income diversification will spur the rural economy and these measures should seek to address the problem of low level of formal education in rural areas.

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