The contribution of smallholder irrigation farming to rural livelihoods and the determinants of benefit distribution : the case of Limpopo Province of South Africa

Abstract

Smallholder irrigation farming is potentially transformative to poor communities. Although previous studies have examined the relationship between smallholder irrigation farming and livelihoods in South Africa, little has been done to quantify the contribution and to examine how benefits from smallholder irrigation are distributed across different types of households. It is often assumed that the benefits flowing from irrigation farming will be distributed evenly among the irrigators. Furthermore, previous studies have focused on farmers operating on irrigation schemes to the exclusion of independent smallholder irrigation farmers. This thesis aims to examine the contribution of smallholder irrigation farming to rural livelihoods in South Africa, specifically the contribution of smallholder irrigation farming to improved household income and food security as pathways out of poverty for rural households. The study provides a more comprehensive analysis of the impact of smallholder irrigation farming on rural livelihoods by including independent irrigators. Specifically, the study addresses the following questions: How has smallholder irrigation farming contributed to household income and food security in the study area? Are household income and food security significant pathways through which smallholder irrigation farming contributes to rural livelihoods? To what extent does smallholder irrigation farming contribute to household income and food security? What factors determine benefit distribution among irrigators? The study was conducted in Mopani district in the Greater Tzaneen municipality of Limpopo Province of South Africa in 2013. Julesburg irrigation scheme, located in the former Gazankulu and Lebowakgomo homelands, formed the anchor of the study area. Data were collected through a survey of 180 rural households, 27 of which were smallholder irrigation scheme farmers, 35 smallholder non-irrigation scheme farmers (independent irrigators), 53 smallholder farmers practising home gardening and 65 other households that included dryland farmers and those who did not practise farming. The households were selected from villages in the vicinity of the irrigation scheme. Farming households represented three groups of farmers, namely, scheme irrigators, independent irrigators and home gardeners. Data were collected through face-to-face interviews with the sampled households. Data analysis employed econometric regression models, semi-parametric propensity score matching techniques and the analysis of variance to compare livelihood outcomes between irrigating and non-irrigating households. Irrigation was the treatment and non-irrigators were used as a control group for propensity score matching. Results of the survey identified substantial differences in the capital base among home gardener, scheme and independent irrigator households. Households involved in irrigation farming had a stronger capital base in terms of natural, physical and financial capital. Differences in the capital base existed even if income flows from agriculture were not considered, suggesting that participation in irrigation farming positively affects the overall capital base of rural households. The results also provide sufficient evidence that smallholder irrigation farming makes a significant contribution to rural livelihoods through its effect on household income and food security. Irrigators were found to have a significantly higher household income and were more food-secure than their non-irrigating counterparts, suggesting that smallholder irrigation contributed positively to rural livelihoods. This provides a strong motivation for continued investment in smallholder irrigation farming in South Africa as part of a strategy to improve rural livelihoods and to grow the rural economy. However, the benefits from irrigation accrue unevenly for different types of farmers and, therefore, they are not equally successful. The main determinants of benefit distribution were: adequacy of source of water for farming, gender and marital status of the household head, ownership of transport means and access to financial services. The contribution of smallholder irrigation to rural livelihoods can be further enhanced by focusing on policies that enhance female participation in irrigation farming, equip farmers with entrepreneurial skills, encourage membership of associations and enhance the effectiveness of the associations to allow more farmers to participate in irrigation farming. As independent irrigators benefit more from smallholder irrigation farming, independent irrigation should be promoted as an option for expanding smallholder irrigation farming. Such policies should be integrated into the overall strategy of growing the rural economy within the National Development Plan of the country.