An empirical analysis of factors affecting the productivity of livestock in southern Botswana

This study attempts to identify factors responsible for differences in the productivity of cattle managed by private and communal livestock farmers in the southern region of Botswana during 1999/2000. Sample survey data are used to estimate the parameters of a block recursive regression model. Some of the equations postulated in the model are estimated with two-stage least squares (2SLS) to account for likely correlation between endogenous explanatory variables and the error term. The results show that (a) respondents with secure land tenure (private farms) and larger herds use more agricultural credit than do those who rely on open access communal grazing to raise cattle; (b) secure tenure and higher levels of liquidity from long-term credit and off-farm wage remittances promote investment in fixed improvements to land; (c) liquidity from short-term credit and wage remittances supports expenditure on operating inputs; and (d) herd productivity increases with greater investment in operating inputs and fixed improvements, and is therefore positively (but indirectly) influenced by secure land tenure. It can be inferred that government should (a) uphold private property rights to land where they already exist; (b) privatise open access grazing to individual owner-operators where this is politically, socially and economically feasible; and (c) where privatisation to individuals is not feasible, government should encourage users to convert the grazing into common property by subsidising the transaction costs of defining user groups and the boundaries of their resources, and of negotiating and enforcing rules limiting individual use of common property. This first-step in a gradual shift towards private property might be followed by a conversion of user-groups into non-user groups organised along the lines of investor-owned firms where members exchange use rights for benefits rights.Productivity Analysis,

AGRICULTURAL PRODUCTION GROWTH IN THE SADC REGION AN ANALYSIS OF INFLUENCING FACTORS

In the past two decades, the pe1fonnance of agricultural production within the Southern Afiican Development Community (SADC) was characterized by sluggish growth rates. Cross-sectional time-series data of 1974 to 1990 were used to examine the factors that detennine total agricultural and food production growth in tl1e region. The results show tlmt agricultural workers, cropped land, fertilizer and use of tractors had significant effects on the regional total agricultural and food production growth. These factors together accounted for between 37 and 41 % of the total variation in food and agricultural production gro\\1h. This suggests that other variables, not included in the models due to data problems do play a very crucial role. TI1ese findings have important implications for improving food and agricultw-al performance in the region. In promoting food and agricultural growth, SADC governments should not only concentrate on improvements in the productivity of the four conventional factors of production, also on other parameters. Other policy-related variables such as producer prices, weather factors, and irrigation and land degradation indices should be given due consideration

FACTORS AFFECTING THE PRODUCTIVITY OF COMMUNAL AND PRIVATE LIVESTOCK FARMERS IN SOUTHERN BOTSWANA: A DESCRIPTIVE ANALYSIS OF SAMPLE SURVEY RESULTS

This article compares herd productivity, levels of investment and socio-economic characteristics of communal and private livestock farmers sampled in the southern region of Botswana during 1999/2000. The object is to determine whether land tenure and other socio-economic variables might contribute to differences in investment and herd productivity. Descriptive statistics show that levels of investment and herd productivity are higher on private farms than on open-access communal grazing. Private farmers are also better educated, more liquid, and have larger herd sizes, but do not differ from their communal counterparts in terms of age, gender, race or household size. Levels of investment in fixed improvements and operating inputs are negatively correlated with herd mortality, and positively correlated with calving and off-take rates, and with liquidity and private ownership of land. While these findings appear to support Botswana’s agricultural policy of privatising some communal grazing land to individual farm households or to small, organized groups of farmers, it is clear that land tenure is not the only variable of policy interest. A more rigorous analysis of the data is required to untange the causes of observed differences in herd productivity and investment

An empirical analysis of factors affecting the productivity of livestock in southern Botswana

This study attempts to identify factors responsible for differences in the productivity of cattle managed by private and communal livestock farmers in the southern region of Botswana during 1999/2000. Sample survey data are used to estimate the parameters of a block recursive regression model. Some of the equations postulated in the model are estimated with two-stage least squares (2SLS) to account for likely correlation between endogenous explanatory variables and the error term. The results show that (a) respondents with secure land tenure (private farms) and larger herds use more agricultural credit than do those who rely on open access communal grazing to raise cattle; (b) secure tenure and higher levels of liquidity from long-term credit and off-farm wage remittances promote investment in fixed improvements to land; (c) liquidity from short-term credit and wage remittances supports expenditure on operating inputs; and (d) herd productivity increases with greater investment in operating inputs and fixed improvements, and is therefore positively (but indirectly) influenced by secure land tenure. It can be inferred that government should (a) uphold private property rights to land where they already exist; (b) privatise open access grazing to individual owner-operators where this is politically, socially and economically feasible; and (c) where privatisation to individuals is not feasible, government should encourage users to convert the grazing into common property by subsidising the transaction costs of defining user groups and the boundaries of their resources, and of negotiating and enforcing rules limiting individual use of common property. This first-step in a gradual shift towards private property might be followed by a conversion of user-groups into non-user groups organised along the lines of investor-owned firms where members exchange use rights for benefits rights

SOURCES AND IMPLICATIONS OF RURAL HOUSEHOLD INCOME FOR IMPROVING RURAL ENTREPRENEURSHIP IN AFRICA: EMPIRICAL EVIDENCE FROM BOTSWANA

In many African countries, a high proportion of the population resides in the rural areas and derives their incomes mainly from agriculture. This notwithstanding, there is a growing evidence that incomes from nonfarm employment sources are increasingly becoming important among the rural population. Using Botswana's rural household survey data, this paper examines the relative contributions and implications of agriculture and nonfarm employment to rural household incomes. Contrary to the popular held view that most rural households derive their income mainly from agriculture, the fmdings of this analysis clearly indicate that nonfarm employment is the dominant source of income in the study area. It accounted for 53% of the average total farm-household income of P4787 (1US$ = P2.49). Remittances alone contributed a substantial share of 37% and constitute an important source of income for most households in the area. On average, 40% of each household's labour force were migrant workers. As regards employment in the area, agriculture employed more than 88% of the active labour force in the villages. The relatively low contribution (47%) from agriculture implies that the potential for savings, investment and development of entrepreneur skills among most people in the area is limited. This situation is likely to encourage rapid rural-urban migration of a considerable proportion of the youth in the area. It is suggested that development strategy of Botswana government should concentrate on sustainable agricultural growth and establishment of rural enterprises to increase both income and employment shares of agriculture and non-agricultural activities, respectively, as well as rural entrepreneurshi