H J Sartorius von Bach

SURPLUS PRODUCERS AND THE FOOD PRICE DILEMMA IN TRADITIONAL AGRICULTURE IN SOUTHERN AFRICA: EMPIRICAL EVIDENCE FROM THE FARMER SUPPORT PROGRAMME

The purpose of this paper is to add new evidence to studies already done on factors associated with surplus producers and on the food price dilemma in traditional agriculture. Survey data of rural households in the FSP areas in KaNgwane was used to determine the factors which discriminate between surplus and deficit producers and to establish a market participation profile to illustrate the extent of the food price dilemma. In the second half of the paper these results are compared with the results from similar studies. Through comparing the results it was possible to obtain a better picture as to what factors determine surplus producers in traditional agriculture. By analysing the market participation profile in the various areas it is also possible to determine the extent of the food price dilemma in Southern Africa. The results obtained from the survey data in KaNgwane were in line with those from the other studies.

EXPENDITURE PATTERNS OF AGRICULTURAL HOUSEHOLDS IN LEBOWA AND VENDA: EFFECTS OF THE FARMER SUPPORT PROGRAMME ON FOOD SECURITY / Bestedingspatrone van landbouhuishoudings in Lebowa en Venda: Die effek van die “Farmer Support Programme” op voedselsekerheid

The specific objective of this paper is to determine expenditure patterns of rural households with a view to evaluating factors which make households more food secured. Expenditure patterns of households participating in the Farmer Support Programme of DBSA were analysed and compared with no-participants in two areas, Lebowa and Venda. It is evident from the results of this study that a high proportion of rural households in Lebowa and Venda food insecured. Results also show that the provision of support services to subsistence farmers will help alleviate food insecurity.

DIVERSIFICATION AS A RISK STRATEGY IN TIMES OF CHANGE: A STUDY IN THE EASTERN ORANGE FREE STATE

Abstract Data from 100 commercial farmers in the Aberfeldy pedosystem (situated in the Northeastern Orange Free Sate) were used to analyse diversification as a risk alleviating strategy. In theory, diversification reduces risk, but when the ability with respect to management or entrepreneurship is ignored, diversification may increase risk. Results show that any excessive attitude towards risk is undesirable. Both risk averters and risk seekers showed a greater probability of finacial deterioration or failure. Risk neutrality seems to be the optimal strategy.

LABOUR-RELATED STRUCTURAL TRENDS IN SOUTH AFRICAN COMMERCIAL GRAIN PRODUCTION: A COMPARISON BETWEEN THE SUMMER AND WINTER RAINFALL AREAS, 1945-1987

Abstract Data from the end of the second World War (1945) to the 1987 production year were used to quantify the pace of change in the structure of farming with regard to labour. Where possible explanations of certain parameters are put forward with the aim of identifying the economic problem with regard to farm labour. Two structural trends in South African commercial maize production are evident in the summer rainfall areas. The period 1915–1970 witnessed a large expansion in cultivated farm area, probably because tractors replaced draught oxen. Larger areas could he managed and more labour was required. Demands on labour for harvesting were heavy until the introduction of the combine harvester alleviated this problem. These trends were strengthened by policies aimed at lowering the costs of capital, giving rise to some of the socio-economic concerns expressed in this paper. In the winter rainfall region where wheat is cultivated the expansion in cultivated area took place before 1945. The period under c...

RELATING PERCEPTIONS AND ASSOCIATED ECONOMIC CRITERIA TO ECONOMIC SURVIVAL IN COMMERCIAL DRYLAND FARMING IN SOUTH AFRICA / Die rol van persepsies en ekonomiese kriteria tot die ekonomiese voortbestaan van kommersiële droëland boerdery in Suid-Afrika

Abstract Data from 100 commercial farmers in the Aberfeldy pedosystem (situated in the north-eastern Orange Free State, Republic of South Africa) were used to calculate suggested economic and perception criteria for each entrepreneur and to compare this data with actual success rates estimated individually for each case a decade later in 1991. Existing economics of scale means that optimal farm size is not the same for any two managers; the better the manager, the larger the optimum farm size. Furthermore, this commercial dryland study showed that better managers are more effective land users. Better managers farm bigger areas, have lower fixed improvements per hectare, higher income per hectare (both gross and net) and are more realistic in decision making, both with regard to financial goals as well as problem consciousness. The above has important implications for structural adjustment of South African agriculture and offers distinct possibilities when potential success ratings have to be estimated by ...

'N EMPIRIESE GEVALLESTUDIE VAN BEDRYFSGROOTTEVOORDELE IN DIE VAALHARTSBESPROEIINGSGEBIED / An empirical study of economies of scale in the Vaatharts Irrigation Area

Abstract The Act on Subdivision of Agricultural Land (Act 70 of 1970) prohibits the subdivision of agricultural land in South Africas commercial areas into “uneconomic” units. In a new dispensation optimal, rather than minimum farm sizes should be pursued. The optimal farm size is theoretically not the same for any two farmers. The better manager will have the larger farm over the long run. The above principle was empirically tested in the Vaalharts Irrigation area by means of cross sectional regression equations with gross income as dependent variable. The result confirms the following: i) If management is ignored, constant returns to size is encountered; and ii) when managerial quality is however included in the model as independent variable, increasing returns to scale is found. This result thus supports the theory and a general conclusion is that optimal farm size is a function of management.

TECHNICAL INEFFICIENCY OF COMMERCIAL MAIZE PRODUCERS IN SOUTH AFRICA: A STOCHASTIC FRONTIER PRODUCTION FUNCTION APPROACH / TEGNIESE ONDOELTREFFENDHEID VAN KOMMERSIËLE MIELIEPRODUSENTE IN SUID-AFRIKA: 'N STOGISTIESE GRENS PRODUKSIEFUNKSIE BENADERING

A stochastic frontier production function is defined for panel data on maize producing regions of South Africa. Technical inefficiency effects are assumed to be a function of climatic conditions, time and the terms of trade facing maize producers. The model is derived using nine years of data for the six major maize production regions of South Africa. The results demonstrate how maize farmers have increased their efficiency in the face of a cost-squeeze. The increased efficiency seems to be driven by lower levels of intermediate input use when facing higher costs and uncertain weather conditions.

AGRICULTURAL SALINIZATION IN THE OLIFANTS RIVER AT LOSKOP VALLEY, MPUMALANGA / LANDBOU-GEÏNDUSEERDE VERSOUTING IN DIE OLIFANTSRIVIER BY DIE LOSKOPVALLEI, MPUMALANGA

Salinization of South African rivers is serious and has rendered some dams and reservoirs unsuitable for irrigation. The contribution of agriculture to the environmental problem of salinization was empirically analysed in this study. Linear regression models demonstrated that increases in the Total Dissolved Salts (TDS) and chlorine of the Olifants River in the Loskop Valley are at least partially the result of variations in irrigation farming parameters such as fertilizer usage, rainfall and area cultivated to crops such as tobacco, cotton and wheat. The marginal rates of substitution among the independent variables can be employed in the formulation of the economically most efficient local salinization control policy. Other approaches are possible, but should be adopted only after thorough investigation.

ARE SOUTH AFRICAN AGRICULTURAL ECONOMISTS ADEQUATELY SKILLED TO FACE FUTURE CHALLENGES? / IS SUID-AFRIKAANSE LANDSOU-EKONOME TOEREIKEND OPGELEI OM TOEKOMSTIGE UITDAGINGS DIE HOOF TE BIED?

The agricultural science establishment experiences growing pressure from an unimpressed public. Like other agricultural scientists, agricultural economists must determine how to face future challenges. The professions playing field has changed. Agricultural economists appear not to be open minded, adaptable and willing to push the boundaries of their discipline to be able to cope with secondary activities. An increasing number of limitations hampers the effectiveness of the profession and this may signal a need for curriculum revision. Departments of Agricultural Economics should recognise the importance of producing economically literate graduates who can function and perform in external environments. Curricular change must incorporate the inclusion of imaginative ideas development that will be able to connect economic rationality with changing perceptions. Services of academic institutions should involve inter alia, focusing their traditional efforts also on non-traditional markets; this provides some ...

GRAIN AS A TRADING COMMODITY IN SOUTHERN AFRICA / GRAAN AS 'N HANDELSKOMMODITEIT IN SUIDELIKE AFRIKA

It is a well known that not all trade in southern Africa is recorded. Recorded trade therefore gives a skew picture and this paper specifically attempts to estimate and investigate unrecorded trade in the region, using the grain market and the “grain trade ratio”. Unrecorded trade occurred in most southem Africa countries and no recorded trade is observed for South Africa during the period 1986–1991. This corresponds to the time when South Africa was politically excluded from formal trading in southern Africa. The grain trade ratio (grain trade as percentage of grain production) is decreasing. The paper examines why the trade ratio decreased when national policies emphasized local food production programmes, market liberalization and more open trade in the region.