Browsing by Subject "smallholder farmers"

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    Open Access
    Exploring the role of development finance institutions in enhancing the financial and technical capacity of smallholder farmers for agribusiness integration: the case study of Zimbabwe
    (2025) Hove, Rumbidzai; Alhassan, Abdul Latif
    The economic and social livelihoods of smallholder farmers in Zimbabwe have not improved despite them being holders of land as a key capital resource. Smallholder farmers are still marred with poverty and food insecurity challenges. The purpose of this research is to explore how the economic and social livelihoods of smallholder farmers can be improved to become more sustainable by devising strategies that will enable them to be integrated into the Agribusiness value chain. Helping smallholder farmers transform their farm operations into commercial operations, thereby integrating them into the agribusiness value chain, is the solution that will enable the economic and social livelihoods of smallholder farmers to be transformed. The study seeks to understand the financial and technical capacity challenges that smallholder farmers face and explore how the support of Development Finance Institutions can be leveraged to turn these challenges around. A qualitative approach was employed by conducting discussions with 30 farmers in the Chegutu region of Zimbabwe. The results indicate that farmers face a myriad of challenges that are driven by both external factors and internal factors. Firstly, farmers have significant gaps in their financial capacity caused by inadequate, volatile, and unstable income, and this causes a lack of investment capital, impacting their potential to scale up and increase land utilisation and farm productivity levels. Moreover, the farmers are not deriving sustainable benefits from farm activities, as displayed by the continuous reinvestment into their farms from non-farm income sources. Secondly, farmers have several gaps impacting their technical capacity to drive innovation and efficiencies in their farming operations. This is due to low levels of education and a lack of farm infrastructure. Thirdly, farmers are facing limitations in monetizing their produce in the local agricultural market, which is caused by structural inefficiencies, inability to access markets, and pricing and demand constraints. Lastly, farmers are not getting adequate institutional support to address the capacity challenges. The results from the discussion prompt a call for action; hence, targeted strategies are recommended for DFIs to consider implementing to support the farmers in deriving a financial benefit from their farms through agribusiness development.
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    Open Access
    How can smart technologies be applied by smallholder farmers for increased productivity and sustained livelihoods?
    (2021) Booi, Samkelo Lutho; Chigona, Wallace
    Problem Statement: The world population is expected to rapidly increase, raising food security concerns across the world. This will impact Africa most severely. The use of innovative farming techniques and technology has proven to accelerate the production yields and improve resilience to vulnerabilities which impact agricultural productivity. The use of smart technologies in farming is mainly present among largescale commercial farms, with minimal representation in the smallholder farming sector. On the other hand, a substantial amount of food in developing countries is produced by small scale farmers. Research Objective: The purpose of the study is to investigate the usage of smart technologies by smallholder farmers in South Africa, and to establish how smart technology could support smallholder farmers in increasing productivity through a three-dimensional view that takes into consideration capital, labour, and land utilization. To this end, an interpretive research philosophy was adopted. Research Design: The study collected the data using semi-structured interviews. The sample for the study constituted of 10 smallholder farmers and 12 subject matter experts within the agriculture and technology domain. To strengthen rigour within the study, the interviews were supported by documents containing viewpoints about how technology is applied in the African context and how it may be introduced and ultimately applied in the South African context. The study employed a deductive approach to theory, applying the Sustainable Livelihoods Approach (SLA) as theoretical underpinning for the study. SLA consists of a pentagon of livelihood assets: physical, social, human, natural, and financial assets. The framework was extended to include technology as an asset due to its potential to contribute to improving the livelihoods of smallholder farmers. Findings: The study found minimal to no use of smart technologies by smallholder farmers in South Africa. The factors which limited the use of technology include PEST (Political, Environmental, Social and Technological) factors. To achieve successful usage of smart technologies, collaboration is required from government, the private sector, smallholder farmers, and communities. Research Contribution: The study aimed to expand on the limited literature on the use of smart farming in the context of smallholder farmers in a developing country context. In addition, it contributed to extending the pentagon of livelihoods to include smart technologies with respect to smallholder farmer livelihoods. Therefore, the findings of this study contributed to the broader body of knowledge. In addition, insights from this study may be gained by the Department of Agriculture, Forestry and Fisheries, smallholder farmers, agricultural entrepreneurs and technologists in formulate developmental strategies and policies to improve the productivity of smallholder farmers as well as their livelihoods as a strategy to increase their contribution to food security in Africa while alleviating household poverty.
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    Implementation Evaluation Of The Smallholder Farmer Support Programme And Its Likelihood Of Increasing Farm Productivity: A Case Of “Abalimi Phambili Project”, Jozini, Kwazulu-Natal
    (2018) Ngcobo, Phumelele Nondumiso; Govender, Rajen; Amisi, Matodzi
    Farmer support programmes are aimed at assisting in unlocking barriers faced by smallholder farmers. These programmes were implemented many years ago by the public and private sector. However, research continues to show that the increase in the number of these initiatives and in budgets/expenditures have not equally translated into an increase in the number of smallholder farmers advancing to commercial status. Therefore, this evaluation research is focused on assessing the implementation progress of a farmer support programme being implemented in Jozini, KwaZulu-Natal. The aim is to assess whether or not the programme is implemented according to the theory of change and to assess the likelihood of the programme achieving its intended outcomes. Both the quantitative and qualitative approaches were applied to collect and analyse data. Quantitative data was made up of project data and qualitative data was obtained through conducting in-depth interviews with farmers currently participating in the programme. Findings from this paper are expected to add to the existing body of knowledge in terms of strengthening and improving the design of farmer support programmes; to emphasise the importance of conducting implementation evaluations to assess programme performance early in implementation; to better understand what is working or not during implementation; and to understand why this is so.
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    Malawi Farm Input Subsidy Programme - impact on income of smallholder farmers
    (2015) Musonzo, Charity Priscilla; Biekpe, Nicholas; Standish, Barry
    Agriculture is the single most important sector in Malawi due to its contribution to the economy ranging from employment creation, contribution to GDP growth to source of foreign exchange earnings. These significant contributions have necessitated the Government of Malawi to develop strategies and policies such as the Farm Input Subsidy Programme (FISP), whose main aim is to increase household incomes and reduce food insecurity and ultimately reduce poverty. It is nine years since the introduction of FISP but its results remain mixed. Using the 2009/10 Integrated Household Survey Phase 3 (IHS3) dataset, a logistic regression in a multivariate data analysis approach was used to investigate the impact of FISP on income levels and food security of rural smallholder farmers in Malawi. The analysis showed that about 82 percent of smallholder farmers live in rural areas, about 75 percent of them were males, 71 percent were married, 70 percent did not go to school and 69 percent benefited from FISP. In farming, 68 percent of these smallholder farmers had less than 1 hectare of farms, 70 percent of them had labour force of less than 5 people, 51 percent of them harvest less than 5 bags of 50kgs of maize of which 92 percent sell most of their harvested maize and 89 percent of them receive less than MK5, 000 from sales. In addition, about 99 percent of these smallholder farmers were food insecure as they save less than 1 bag of 50kgs after harvest. Only 1 percent of these smallholder farmers receive remittances and 21 percent had other income generating activities (IGAs). Demographic and socio-economic factors have no impact on these farmers capability to increase income levels and enhance their food security. There is also no statistically significant difference between FISP beneficiaries and non-beneficiaries in terms of capabilities of increasing incomes and enhancing food security. It is, therefore, concluded that FISP had no significant impact on the abilities of these smallholder farmers to increase their incomes and enhancing their food security. Hence, FISP did not prove to be the best food security and poverty alleviation tool in Malawi.
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    The impact of farm input subsidies on economic efficiency of maize production in Malawi
    (2018) Chiromo, John; Alhassan, Abdul Latif; Ocran, Matthew
    The study analyzed the impact of the farm input subsidy programme (FISP) on the technical, allocative and economic efficiency and determining factors associated with these efficiencies of 12, 271 smallholder maize farmers from 2010 IHS3 dataset in Malawi. Descriptive statistics, stochastic frontier approach as and a Cobb-Douglas production function were applied. Yield responsiveness to production inputs was estimated by computing input elasticities. The findings indicate that technical efficiency of smallholder maize farmers ranged from 15.7 to 78.9 with a mean of 61.3 percent reflecting a substantial level of inefficiency. The allocative efficiency scores were between 23.5 and 86.2 with a mean of 66.9 percent reflecting a substantial level of allocative inefficiency. The economic efficiency scores were between 14.1 and 74.6 with amean of 59.2 percent reflecting a substantial economical inefficiency. An estimated return to scale was 0.87 indicating that during the period under review, smallholder maize farming decreased by about 13 percent. The results of second stage Tobit regression estimations indicates that the FISP programme improved the efficiencies of maize farmers in Malawi. In addition, t farmers’ age, farming experience, education years, having an income generating activity and receiving remittance were also identified as significant drivers of production capacity of smallholder farmers maize. However, farmers’ marital status, family size and distance to the market had a negative impact on smallholder farmers’ capacity in maize production. Smallholder farmers in Malawi were experiencing a decreased return to scale meaning that they were technical, allocative and economically inefficient in maize production. From the findings, among other issues to be considered for the improvement of technical, allocative and economic efficiencies of maize production among smallholders farmers, the government should support only energetic farmers, make farm inputs available and accessible to farmers, continued advocacy on v adoption of family planning to reduce population growth to carter for scarcity of resources, increase and enhance extension services to help in educating these smallholder farmers in handling new technologies associated with modern agriculture, encourage them to engage in IGAs to complement FISP in purchasing farm inputs, increased and extended cash transfer program to economically empower these smallholder farmers.