Factors Influencing Smallholder Farmers’ Decisions to Participate in Loan-Based Farming in Mutare District, Zimbabwe—A Double-Hurdle Model Approach

Abstract

Agriculture is an important sector in Zimbabwe’s economy. More than 70% of the population are smallholders relying on agriculture. To support agriculture, Zimbabwe’s government introduced a Targeted Command Agriculture Programme (TCAP), in terms of which the state provides production inputs like seeds, fertilisers, protection chemicals, and extension services. In turn, the farmer is expected to produce 5 tonnes of maize per hectare for the Grain Marketing Board. The cost of inputs that the state provided is then deducted from the 5-tonne maize yield, and the farmer is paid the balance. Numerous authors have studied the design of TCAP and its impact on farmers. However, only a few have focused on the determinants of participation, especially with an empirical basis and in the Mutare District. To bridge this knowledge gap, this study implements a double-hurdle model to determine factors influencing farmers’ participation in Zimbabwe’s TCAP using a sample of 350 farmers. The study found that gender, family size, farmer type, command agriculture education, and distance from the market influenced smallholder farmers’ participation in TCAP. Therefore, policymakers should consider these factors to improve the design of the programme and enhance the participation of smallholder farmers in it.