Abstract
This paper examines the influence of protection on South African commercial agriculture. It shows that protective trade policy and its effects have been a major source of agricultural change in South Africa, and are at least partially responsible for many of the present problems experienced in South African agriculture. First, it outlines how structural cost‐push inflation resulted from the protective trade policies and shows the effect thereof on farm receipts, expenses and balance sheets. This is followed by changes in farm structure, mainly size, number of farms, and the ratio of capital and labour in the production process. The paper concludes with some policy aspects.
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