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Ponte Academic Journal
May 2018, Volume 74, Issue 5

SOCIO-ECONOMIC FACTORS INFLUENCING NETT FARM REVENUE OF SMALLHOLDER FARMERS UNDER EXTREME CLIMATIC CONDITIONS IN THE EASTERN CAPE PROVINCE, SOUTH AFRICA

Author(s): Melusi Sibanda ,Lovemore Musemwa, Abyssinia Mushunje, Charles S. Mutengwa, Leocadia Zhou

J. Ponte - May 2018 - Volume 74 - Issue 5
doi: 10.21506/j.ponte.2018.5.19



Abstract:
The Eastern Cape is one of the poorest provinces in South Africa. Agriculture remains an important sector in the province, and most smallholder farmers largely depend on it for both income and sustaining their livelihoods. Smallholder farming is usually constrained by numerous bio-physical and socio-economic challenges, resulting in low productivity and low income levels. This situation is worsened by the emerging global threat of extreme climatic events. This paper sought to determine the socio-economic factors that influence the nett farm revenue of smallholder farmers under extreme climatic conditions in the Eastern Cape province. Smallholder farmers were stratified into dry-land and irrigation farmers. Primary data was collected from 250 smallholder farmers (both crop and livestock) through structured questionnaires by means of convenience sampling from the Chris Hani and OR Tambo Districts. Data was analysed on Stata software. Descriptive statistics were employed to describe farmer characteristics and the Ordinary Least Squares (OLS) multiple regressions were employed to determine the socio-economic factors influencing nett farm revenue of smallholder farmers. Results show that on average, the nett farm revenue of irrigation farmers was higher (ZAR11 868.06) than that of the dry-land farmers (ZAR7 904.85) per annum. Socio-economic factors such as gender, highest educational level, household size, farming experience and access to formal markets positively influenced nett farm revenue while distance to output markets negatively influenced nett farm revenue. It is recommended that smallholder farmers be supported and empowered, especially under extreme climatic conditions, through educational programmes and market development to enhance their production and boost their nett farm revenues.
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