Agriculture is considered as a leading source of employment while ensuring food security to the world and especially rural communities. However, the youth do not appear to be interested in the agricultural sector due to various reasons such as their perceptions and aspirations towards the sector. This research intends to explore whether perceptions, aspirations and access to resources affect youth participation in agriculture and related economic activities, under rain-fed production in two regions of the Free State province of South Africa. Principal component analysis was used to determine perception dimensions, while a probit model was used to investigate the effect of capital (human, social, physical, financial and natural), the perception dimensions and the respondents’ agricultural aspirations on agricultural participation. The results showed that the aspirations of youth do not affect their decision to participate in the agricultural sector. However, exposure to agriculture and support systems can increase youth participation in the industry. Results also show that grants, which are an easy source of income, and the uneducated and comfort perception dimension hinders youth participation in agriculture.
Previous research on agricultural productivity in Africa has focused on conventional Total Factor productivity (TFP) growth rather than Green Total factor productivity (GATFP) growth, thus ignoring the effect of undesirable outputs such as emissions. This has raised concerns about the sustainability of agricultural productivity growth in the continent. The study was designed to examine GATFP growth in agricultural productivity for 49 African nations from 2000 to 2019. We apply the Global Malmquist–Luenberger (GML) Productivity Index, which complies with the sustainable development agenda that promotes greater production of desirable outputs and minimising unwanted outputs. This approach is also compared to Global Malmquist (GM) Productivity Index which ignores unwanted outputs, yielding to conventional TFP growth. We found an average GATFP growth of 0.6% and TFP growth at 0.9% suggesting that the actual agricultural productivity growth is overstated if agricultural emissions are disregarded. Both estimates fell short of the desired annual target of 7% from the Comprehensive African Agriculture Development Programme (CAADP). Regional growth is mostly characterised by high (low) GATFP and TFP except in Southern Africa and East Africa. The two regions represent an ideal situation where GATFP exceeds TFP. At country level growth can be divided into three scenarios: desired growth, where GATFP exceeds TFP; balanced growth with both estimates equivalent; and undesired growth, where TFP exceeds GATFP. Unfortunately, most African nations fall in the last scenario. We conclude that policies must be developed to encourage sustainable agricultural productivity growth in Africa.
The effort to increase agricultural productivity continues to receive interest in Africa as low productivity levels, poverty and food insecurity remain or even increase. This study used the Färe-Primont Index to estimate agricultural total factor productivity growth for 49 African countries. Panel data consisting of 833 observations for the period 2000 to 2016 were obtained from the United State Department of Agriculture Economic Research Service database. The results show that the average growth rate for agriculture in Africa is 0.73% per annum. The sector experienced increased growth after the Maputo Declaration, which was sustained during the global financial crisis. West Africa experienced the largest growth while Southern Africa suffered a substantial decline. The study also discovered that growth differed between countries indicating that customization of the Comprehensive Africa Agriculture Development Programme into regional and country-specific policy interventions is important to boost agricultural productivity. Finally, the growth was achieved through technical change, while efficiency change constrained growth. Policy-makers should increase investment in agricultural extension services, education and training to enhance managerial capacity (efficiency change) because improved managerial capacity could increase agricultural growth and thereby increase food security and alleviate poverty in Africa.
The purpose of the paper is to determine the influence of different factors used by a formal credit institution to evaluate loan applications in the agricultural sector. The research attempts to capture the actual factors considered by credit institutions rather than the traditional factors found in literature. Loan applications from 128 farmers, predominantly commercial farmers, were obtained from a credit institution with branches situated in various provinces of South Africa. Data consisted of loan application information which is broader than the financial information normally obtained in credit research, and the final decision of the credit provider. Principal component logistic regression was used to investigate the likeliness with which loan application variables influence the outcome of the loan application. Results indicate that loan applications that are more likely to be successful are older more experienced farmers, who can provide sufficient collateral, have more years of business with the credit provider, have an acceptable credit history, request smaller loan amounts, have lower interest expense ratio, higher production cost ratios, and have diversification strategies. This paper contributes to knowledge on information used by financial credit providers (institutions) in classifying agricultural loan applications as successful as guided by actual factors used in credit decision making by the credit provider.
The paper investigates if two groups of smallholder sheep farmers who farm using communal grazing land in the N8 development corridor of South Africa can be treated in a homogenous manner. Heterogeneous production environments should result in different production responses, which are unique to the production region. A better understanding of these unique responses could guide the development of improved strategies to increase smallholder livestock production in South Africa. A stochastic production frontier approach was used to evaluate two production districts before grouping the data and estimating the metafrontier. The metafrontier represents a homogenous benchmark for all producers. Results indicate that the two districts cannot be treated the same. Therefore a single production function and strategy cannot be used to improve productivity and efficiency of livestock production in both the districts. The conclusion is that the development of strategies to increase smallholder sheep producers, productivity and efficiency requires an understanding of the production, environmental and institutional factors that the farmers experience within that particular district. Considering the study areas used in the paper, attention to the more technical aspects of production and management can improve the farmers' productivity and efficiency.