Agriculture in a developmental state : finding the nexus for development(al) agricultural economists

First of all, I feel very honoured and humbled to present this prestigious FR Tomlinson Memorial Lecture, particularly in my home province of Limpopo where I cut my teeth of service as an agricultural economist. It all started in the early days of my primary schooling where I observed extension officers assisting farmers to manage their micro-farm enterprises at our Eldorado village in Blouberg. It was a place well-endowed with underground water, good arable soil and sweet grazing land (though with less than normal rainfall). Years later, I had the opportunity to serve the Agricultural Economics profession through the Agricultural Economics Association of South Africa (AEASA) Management Committee at different (if not all) portfolios3. Then, I persuaded the association to open up to agricultural economists from different spaces, particularly from the provinces. This year marks 25 years since I started practising as an agricultural economist, and having attended2015 FR Tomlinson Memorial Lecture, delivered at Bolivia Lodge, Polokwane on 1 December 2015.http://www.tandfonline.com/loi/ragr202017-12-31hb2017Agricultural Economics, Extension and Rural Developmen

A factor analysis of access to and use of service infrastructure amongst emerging farmers in South Africa

While many studies have identified infrastructure as a constraints to production in agriculture in South Africa, few have attempted to investigate the extent to which emerging farmers are able to access and utilise infrastructure services. This paper uses data collected from 500 emerging farmers across the nine provinces of South Africa to determine the accessibility and use of infrastructure by emerging farmers. Factor Analysis was applied on fifteen indicators of infrastructure. The principal components extraction method extracted four factors, namely distance to services infrastructure, tarred road conditions to the services infrastructure, visitation to general services infrastructure and agricultural support services infrastructure. The results show that services infrastructure is generally more accessible to emerging farmers than before. The factors that determine the accessibility to infrastructure services include the distance of the nearest town from the villages, the state of the roads that farmers use and the frequency of visits to the nearest town. The distance to services infrastructure is segregated from condition and usage. The results indicate that all services are in a more or less similar location and in similar condition in terms of access. The implication of this study is that policy should address farmers’ access to services, which are sometimes in bundles, and the role of locating services in centres is pertinent as it stimulates agricultural and rural development.Farm Management,

Life under lockdown : illustrating tradeoffs in South Africa’s response to COVID-19

This research note sheds light on the first three months of the COVID-19 outbreak in South Africa, where the virus has spread faster than anywhere else in the region. At the same time, South Africa has been recognized globally for its swift and efficient early response. We consider the impact of this response on different segments of the population, looking at changes in mobility by province to highlight variation in the willingness and ability of different subsets of the population to comply with lockdown orders. Using anonymized mobile phone data, we show that South Africans in all provinces reduced their mobility substantially in response to the government’s lockdown orders. Statistical regression analysis shows that such mobility reductions are significantly and negatively associated with COVID-19 growth rates two weeks later. These findings add an important perspective to the emerging literature on the efficacy of shelter-in-place orders, which to date is dominated by studies of the United States. We show that people were particularly willing and able to act in the provinces hit hardest by the pandemic in its initial stages. At the same time, compliance with lockdown orders presented a greater challenge among rural populations and others with more precarious livelihoods. By reflecting on South Africa’s inequality profile and results of a recent survey, we demonstrate how the country’s response may deepen preexisting divides. This cautionary tale is relevant beyond South Africa, as much of the continent – and the world – grapples with similar tradeoffs. Along with measures to contain the spread of disease, governments and other development focused organizations should seriously consider how to offset the costs faced by already marginalized populations.http://www.elsevier.com/locate/worlddev2022-01-01hj2020Agricultural Economics, Extension and Rural Developmen

Important policy parameters for the development of inclusive digital agriculture : implications for the redistributive land reform program in South Africa

The creation and deployment of digital technologies throughout the agro-food system contribute to achieving Sustainable Development Goal nine. However, various digitalization studies offer limited insight into the policy issues and solutions around emerging technologies and big data systems in agriculture. There is a need for an additional understanding of how agricultural policymaking should respond to the usage of digital technologies in the agri-food sector. Furthermore, evidence is limited on how existing agricultural government programs such as land reform can be linked with digitalization policy. This systematic review of literature sought to determine the transformation that is needed in the political and economic environment for the digital revolution to take place within South African land reform agriculture. A thematic analysis of data sampled from ProQuest Central, Scopus, Dimensions, and Google Scholar reveals five areas of intervention from agricultural policymaking. The digital revolution in agriculture can be brought about by transforming digital infrastructure, data interoperability and governance, digital markets, the compatibility of government incentives with the private sector, and the digital cultural landscape. This essay contributes to agricultural policy and decision-making dialogues that pay attention to digital technologies and land reform programs in South Africa.https://www.mdpi.com/journal/agricultuream2023Agricultural Economics, Extension and Rural Developmen

Value chain digitalisation and adoption intention by proactive land acquisition strategy (PLAS) farmers in the Eastern Cape Province, South Africa

DATA AVAILABILITY STATEMENT : The data presented in this study are available on request from the corresponding author. The data are not publicly available due the fact that it is only a portion of a larger dataset from which subsequent publications are expected.Digital technologies disrupt agricultural value chains, thereby facilitating enhanced connectivity among various players. This contributes to the development of resilience and sustainability within farms. This study examined behavioural factors that influence farmers’ intentions to adopt value chain digital technologies available in South Africa. A simple random sample of 100 Eastern Cape PLAS farms was chosen. Data was collected using a semi-structured questionnaire. The data was analysed in R and STATA statistical packages using the unified theory of acceptance and use of technology (UTAUT) and structural equation modelling (SEM). The results indicated a significant relationship between performance and effort expectancy and the intention to adopt value technologies. Furthermore, male farmers had a higher expectation of performance and effort. Prioritising performance demonstrations and trainings on the utilisation of these technologies is crucial in efforts to enhance their adoption. This contributes to the existing body of literature on the deployment of value chain technologies.https://www.mdpi.com/journal/sustainabilityam2024Agricultural Economics, Extension and Rural DevelopmentSDG-02:Zero Hunge

Patterns of access to rural service infrastructure: the case of farming households in Limpopo Province

Inadequate infrastructure is a major development challenges in developing countries. This paper applies factor analysis to determine the pattern of access to rural service infrastructure on 158 farming households in the Limpopo Province. The nine components of access to service infrastructure (distance to Polokwane, nearest town, local government, hospital, magistrate office, post office, traditional authority, district agricultural offices and extension service) were subjected to factor analysis. The results support the concept of centre-periphery pattern of service infrastructure development. Polokwane is a major centre in the Province, and provide a composite of services. Its peripheries are regions, which have towns as centres. Health, local government and postal services are mainly found in such regional centres. The district centres provide mainly agricultural and justice services. Finally, local centres provide services of traditional authorities, agriculture and postal services. These patterns have major implication for infrastructure development policy and programs. They also need to be considered in current crafting of institutions for rural economic development.Community/Rural/Urban Development,

Patterns of access to rural service infrastructure: the case of farming households in Limpopo Province

Inadequate infrastructure is a major development challenges in developing countries. This paper applies factor analysis to determine the pattern of access to rural service infrastructure on 158 farming households in the Limpopo Province. The nine components of access to service infrastructure (distance to Polokwane, nearest town, local government, hospital, magistrate office, post office, traditional authority, district agricultural offices and extension service) were subjected to factor analysis. The results support the concept of centre-periphery pattern of service infrastructure development. Polokwane is a major centre in the Province, and provide a composite of services. Its peripheries are regions, which have towns as centres. Health, local government and postal services are mainly found in such regional centres. The district centres provide mainly agricultural and justice services. Finally, local centres provide services of traditional authorities, agriculture and postal services. These patterns have major implication for infrastructure development policy and programs. They also need to be considered in current crafting of institutions for rural economic development

Digitalization and small businesses supply chain financing : evidence from sub-Saharan Africa

Supply chain finance continues to play an important role in servicing businesses that have limited access to finance. With the disruptions associated with the fourth industrial revolution, opportunities exist in Africa to increase participation by small businesses. While the effect of digitalization on supply chain finance has been explored, evidence from Africa is still limited. This study sought to determine the effect of digitalization on supply chain financing of small businesses in Africa. The study utilized a dataset that consists of observations from 4409 small businesses in sub-Saharan Africa, including agricultural businesses. Four indicators of digitalization (use of company websites, social media, online advertisements, and mobile phone ownership) were used to compute and index digitalization. A logit regression model was fitted on the dataset to determine the effect of digitalization on supply chain finance. The results showed that digitalization significantly affects adoption of supply chain finance by small businesses. The results were robust and did not change significantly due to the inclusion of confounding factors. The results additionally indicated that supply chain financing is also affected by education level, company age and government training programmes in supply chain financing (p < 0.05), although there was a significant difference in the adoption of supply chain finance across countries and between small agricultural businesses and businesses from other sectors of the economy. Thus, any efforts to improve financing activities of small businesses should consider their digitalization development. Investments in digitalization infrastructure by Africa governments should be scaled up. The regulatory environment should be kept favourable to facilitate development of inclusive digital markets. Future research should explore available digital solutions, adoption costs and factors that affect demand by small businesses in sub-Saharan Africa.http://www.tandfonline.com/loi/rajs202025-08-05hj2024Agricultural Economics, Extension and Rural DevelopmentSDG-09: Industry, innovation and infrastructur

A factor analysis of access to and use of service infrastructure amongst emerging farmers in South Africa

While many studies have identified infrastructure as a constraints to production in agriculture in South Africa, few have attempted to investigate the extent to which emerging farmers are able to access and utilise infrastructure services. This paper uses data collected from 500 emerging farmers across the nine provinces of South Africa to determine the accessibility and use of infrastructure by emerging farmers. Factor Analysis was applied on fifteen indicators of infrastructure. The principal components extraction method extracted four factors, namely distance to services infrastructure, tarred road conditions to the services infrastructure, visitation to general services infrastructure and agricultural support services infrastructure. The results show that services infrastructure is generally more accessible to emerging farmers than before. The factors that determine the accessibility to infrastructure services include the distance of the nearest town from the villages, the state of the roads that farmers use and the frequency of visits to the nearest town. The distance to services infrastructure is segregated from condition and usage. The results indicate that all services are in a more or less similar location and in similar condition in terms of access. The implication of this study is that policy should address farmers’ access to services, which are sometimes in bundles, and the role of locating services in centres is pertinent as it stimulates agricultural and rural development

Economic returns of public research and development funding in South Africa : evidence from the Agricultural Research Council’s table grapes cultivar development programme

The study sought to estimate the genetic gains and associated monetary value contributed by the TGCD programme of the Agricultural Research Council (ARC). The Just-Pope production function and cost benefit analysis (benefit cost ratio – BCR, and modified internal rate of return – MIRR) were employed to analyze the administrative programme costs and industry yield data for the ARC’s cultivars. The results revealed an average annual yield gain of 0.21 t/ha for the period from 1965 to 2014, and a BCR of 4.85. An MIRR of 18% was also revealed. This means that for every rand invested in the programme, R4.85 is realized and the high MIRR further confirms the worthiness of these investments. Thus, these results are useful as evidence for the missing information on the effectiveness and efficiency of public funds expended in table grapes research and as motivation for increased funding, as well as for participation by other industry stakeholders.http://www.tandfonline.com/loi/rajs202022-11-13hj2022Agricultural Economics, Extension and Rural Developmen