Economic analysis of smallholder maize farmers: implications for public extension services in Eastern Cape

I K Agbugba,M Christian,A Obi

doi:10.17159/2413-3221/2020/v48n2a537

Abstract

ABSTRACT This study sought to determine the economics of maize farmers in Amatole District, Eastern Cape. Multistage sampling procedure was used to select hundred and nine (109) smallholder farmers (homestead and irrigators). Descriptive statistics and gross margin analysis were used to determine the economics and profitability of maize in the study area. Findings indicated that majority (66 per cent) of them were men with an average age of 61 years old, majority (69 per cent) were married, with mean household size of 4 persons and household heads having some primary education. Moreover, majority (76 per cent) of the farmers depended on irrigation technology; majority (33 per cent) of the famers spent between 9 and 11 years of experience in farming; majority (89 per cent) of the respondents in the study area were dependent on farming as their major occupation and livelihood. Pertaining to land acquisition, majority (48%) of the farmers believed that the traditional or community leaders set rules and regulations regarding land acquisition. From the profitability analysis, smallholder farmer irrigators generated significantly higher yield, total revenues and gross margins more than the homestead gardeners at 5, 10 and 5 per cent levels, respectively. Moreover, homestead gardeners spent more money in purchase of inputs and this may have contributed to their low gross margins. On the other hand, smallholder-farmer irrigators who incur less input costs have higher chances of benefiting from price discounts and transport offer by input suppliers than the homestead gardeners. This results in smallholder farmer irrigators wielding more profits, thereby creating more income and wealth which is pivotal in the improvement of farmers' livelihoods. Keywords: Economics, profitability, Maize farmers, Extension service, Eastern Cape.

Highlights

1.1 BackgroundWith the increase in South Africa’s productivity level of smallholder farmers, general food production for households and small surpluses, attention is raised in line with improving of the socio-economic status of the farmers who are directly or indirectly engaged in food production and distribution in villages and district markets, respectively (Hagos and Geta, 2016)
The socio-economic features of the respondents in this study included gender, age, marital status, household size, level of education, distribution of farmers according to irrigation scheme, occupation and number of years spent in smallholder maize enterprise
Homestead maize gardeners spent more money in purchase of inputs and this may have contributed to their low gross margins (R254.655)

Summary

Introduction

1.1 BackgroundWith the increase in South Africa’s productivity level of smallholder farmers, general food production for households and small surpluses, attention is raised in line with improving of the socio-economic status of the farmers who are directly or indirectly engaged in food production and distribution in villages and district markets, respectively (Hagos and Geta, 2016). The exceptional role played by smallholder farmers in developing Africa’s agriculture, brings about high economic interest and raises additional incomes at the farm or famer level, all things remaining equal (Ezihe et al 2017). According to Sinyolo et al (2014), smallholder agriculture and rural development play a significant role in reducing poverty and unemployment. In order words, enhancing the farmers’ roles led to the government adopting a variety of initiatives in developing smallholder agriculture. This involved placing extension officers in the wards for onward implementation of government programmes, land reform programmes thereby forming new water rights legislation (Offiah, 2015; AgriSA, 2017)

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