Abstract
Abstract Effects of increased earnings from agriculture on consumption and investment on households in the Phokoane area of Lebowa are determined by utilising cross-sectional survey data. Income elasticities indicate that the demand for goods (staple food) produced by households increases less than the demand for purchased goods. A discriminant analysis of surplus versus deficit products indicates that surplus production is associated with farmers who participate in the Farmer Support Programme (FSP) (i.e., farmers using insecticides and purchase inputs on credit). Availability of labour, specifically female labour, also plays an important role in explaining the difference in production performance between surplus and deficit food-producing households.
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