Evaluating Factors Affecting Performance of Land Reform Beneficiaries in South Africa

Abstract

The ability of farmers to operate redistributed farms in a profitable and sustainable manner is crucial for both successful integration into agricultural value chains and sustainable production systems. The performance of redistributed farms is becoming increasingly important as the number of redistributed farms increases in light of correcting previous anomalies in land ownership in South Africa while ensuring continued food security. Although much has been done to assess the impact of land reform on macro variables, little has been done to unpack factors associated with the success of redistributed farms. Using a sample of 1956 redistributed farms across the nine provinces of South Africa, the current study employs an ordinary least square regression as well as a generalised logistic regression model to identify factors associated with the success (measured by net farm income and probability to operate at commercially viable scale) of the sampled farms. The results show that infrastructure, support (both technical and financial), and type of market used are significantly associated with the performance of redistributed farms. In addition, the results reveal disparities in performance across provinces and across gender categories. The study provides valuable insight to programme managers on the factors that needs to be enhanced in order to increase the odds of success for redistributed farms.