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The role of social grants on commercialization among smallholder farmers in South Africa: Evidence from a continuous treatment approach

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  • Sikhulumile Sinyolo
  • Maxwell Mudhara
  • Edilegnaw Wale

Abstract

This study examined the role of social grants to smallholder producers’ incentives to sell maize marketable surplus. The study used the generalized propensity score (GPS) matching method to analyse the data collected from a sample of 774 smallholder producers in KwaZulu‐Natal. The results support the disincentive hypothesis, demonstrating a negative association between social grants and market participation levels of smallholders. The study findings imply that policies aimed at increasing smallholder commercialization should also focus on how to reduce the disincentive effects of social grants.

Suggested Citation

  • Sikhulumile Sinyolo & Maxwell Mudhara & Edilegnaw Wale, 2019. "The role of social grants on commercialization among smallholder farmers in South Africa: Evidence from a continuous treatment approach," Agribusiness, John Wiley & Sons, Ltd., vol. 35(3), pages 457-470, July.
    • Handle: RePEc:wly:agribz:v:35:y:2019:i:3:p:457-470
    DOI: 10.1002/agr.21601
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    References listed on IDEAS

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    1. Silvio Daidone & Benjamin Davis, 2012. "Analytical Framework for Evaluating the Productive Impact of Cash Transfer Programmes on Household Behaviour," One Pager 185, International Policy Centre for Inclusive Growth.
    2. Lipton, Michael, 2005. "The family farm in a globalizing world: the role of crop science in alleviating poverty," 2020 vision discussion papers 40, International Food Policy Research Institute (IFPRI).
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    1. Valdemar J. Wesz Junior & Simone Piras & Catia Grisa & Stefano Ghinoi, 2021. "Assessing Brazilian agri-food policies: what impact on family farms?," Papers 2105.14996, arXiv.org.
    2. Ejovi Akpojevwe Abafe & Oluwaseun Samuel Oduniyi & Sibongile Sylvia Tekana, 2021. "Quantitative Analysis of Farmers Perception of the Constraints to Sunflower Production: A Transverse Study Approach Using Hierarchical Logistic Model (HLM)," Sustainability, MDPI, vol. 13(23), pages 1-18, December.

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