Analysis of profitability of smallholder irrigated food plots in the eastern cape province of South Africa

Lelethu Mdoda and Ajuruchukwu Ob Obi

Journal of Agribusiness and Rural Development, 2019, vol. 53, issue 3

Abstract: Smallholder irrigation farming is transformative to poor households as it improves livelihoods and alleviates poverty. However, little has been done to quantify its profitability. Therefore, the present study assessed the profitability of smallholder irrigated crop farmers in the Eastern Cape province of South Africa and ascertained its determinants. A multistratified technique was employed to select 120 smallholder irrigated crop farmers. Data was analyzed using gross margin and multiple regression models. The results showed that crop production is profitable. Farm experience, years spent in school, access to credit, distance to markets, and tractor use were found to have a bearing on the profitability of irrigated crop farmers. Based on the results, crop farming was identified to be crucial for jobs creation and poverty reduction.

Keywords: Agribusiness; Agricultural Finance (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:ags:pojard:356038

DOI: 10.22004/ag.econ.356038

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