ECONOMIC CHALLENGES LIMITING SMALL-SCALE COMMERCIAL FARMING DEVELOPMENT IN RURAL AREAS OF SOUTH AFRICA

Small-scale commercial farming has been recognised as a congruent strategy for local economic development. However, there are entrepreneurial challenges that are aggravated by the state of the economy, natural factors and weak agrarian edification system limiting growth in this sector. The fact that small-scale commercial farming is prioritized in the development agendas of the majority of African nations reflects how important it is in promoting food security and job creation. A number of agronomic limitations, including a limited farming entrepreneurship skill, severe climate change, drought, limited access to cash, and water shortages, have been recognized as major obstacles to the growth of smallscale commercial farming. As a result, the study presents the obstacles to entrepreneurship and small-scale commercial farmers in South Africa's rural areas. Two hundred and seventeen small-scale commercial farmers were chosen using a multi-stage sample technique. Quantitative data were collected through a survey in which structured questionnaires were used. Statistical Package for Social Sciences, version 26 and Microsoft Excel version 2016 software were used as data analysis tools. Friedman means ranking technique was used to categorize the challenges in ascending order. Pearson chi-square was used to determine the relationship between the variables. The computed results revealed that financial, water, access to the market, crops and animal diseases were the most prevalent challenges. Subsequently, these farmers have poor financial management, marketing, packaging, cross-breeding and human management skills and this is exacerbating the challenges faced. Based on the results of this investigation, the paper recommends that the establishment of training programmes to improve entrepreneurship skills should be offered to these farmers, depending on the type of farming. Agricultural policies should be based on current evidence and should also be based on regular assessments. This improves the readjustment of relevant policies for the development of small-scale commercial farming. The study recommends that building of strong government intervention, farming stakeholder participation in policy formulation and adequate support for small-scale commercial farmers’ schemes in rural areas should be prioritised

ECONOMIC CHALLENGES LIMITING SMALL-SCALE COMMERCIAL FARMING DEVELOPMENT IN RURAL AREAS OF SOUTH AFRICA

Small-scale commercial farming has been recognised as a congruent strategy for local economic development. However, there are entrepreneurial challenges that are aggravated by the state of the economy, natural factors and weak agrarian edification system limiting growth in this sector. The fact that small-scale commercial farming is prioritized in the development agendas of the majority of African nations reflects how important it is in promoting food security and job creation. A number of agronomic limitations, including a limited farming entrepreneurship skill, severe climate change, drought, limited access to cash, and water shortages, have been recognized as major obstacles to the growth of smallscale commercial farming. As a result, the study presents the obstacles to entrepreneurship and small-scale commercial farmers in South Africa's rural areas. Two hundred and seventeen small-scale commercial farmers were chosen using a multi-stage sample technique. Quantitative data were collected through a survey in which structured questionnaires were used. Statistical Package for Social Sciences, version 26 and Microsoft Excel version 2016 software were used as data analysis tools. Friedman means ranking technique was used to categorize the challenges in ascending order. Pearson chi-square was used to determine the relationship between the variables. The computed results revealed that financial, water, access to the market, crops and animal diseases were the most prevalent challenges. Subsequently, these farmers have poor financial management, marketing, packaging, cross-breeding and human management skills and this is exacerbating the challenges faced. Based on the results of this investigation, the paper recommends that the establishment of training programmes to improve entrepreneurship skills should be offered to these farmers, depending on the type of farming. Agricultural policies should be based on current evidence and should also be based on regular assessments. This improves the readjustment of relevant policies for the development of small-scale commercial farming. The study recommends that building of strong government intervention, farming stakeholder participation in policy formulation and adequate support for small-scale commercial farmers’ schemes in rural areas should be prioritised

Analysis of technical efficiency of small-scale commercial farmers in Vhembe district

Small-scale commercial farmers are regarded as the strategic avenue to achieve meaningful development in rural areas of South Africa.  The government acknowledged that the inclusion of small-scale commercial farming in its development strategies. The paper aims to measure the efficiency of small-scale commercial farming enterprises in Vhembe District in Limpopo Province. Quantitative data were collected from 217 small-scale commercial farmers using structured questionnaires. The data were standardized using a farming enterprise budget system and analysed using the maximum likelihood and stochastic frontier analysis. The results revealed that aggregate output was positive and significantly influenced by age, education level, farm experience, farm labour, and government grants. However, the projected stochastic production frontier model combined with the efficiency parameters showed that labour and credit computed a negative effect on technical efficiency. The results indicated that the average level of technical efficiency ranged between 20% and 96% with a mean of 54%. This indicates that there is potential to increase production among small-scale commercial farmers in the study area by 46 % through efficient use of existing resources. As such, the local government should provide necessary supports such as formal agriculture training, access to credit and information to increase productivity