Welfare impacts of conservation agriculture adoption on smallholder maize farmers in South Africa

Abstract

Climate change and soil degradation are the issues depleting the soil's ability to promote good yield. One of the ways to combat this is the practice of conservation agriculture (CA). This study was carried out to explore and investigate the impact of CA. Multinomial endogenous switching regression model and cross-sectional data were used to investigate the determinants and the impact of the adoption of CA on the income of smallholder maize farmers in Mpumalanga Province, South Africa. Three categories of CA (minimum tillage, crop diversification and a combination of both minimum tillage and crop diversification) were considered. The empirical results revealed that regardless of the choices of CA practices adopted by the maize farmers, the income realized was higher for adopters than for non-adopters of CA practices. The average treatment effect for the adopters of both minimum tillage and crop diversification was the highest, showing an increase in income by 60.31% (R15575.99/$996.57USD) compared to the non-adopters. The policy implication for these results is that there is a need to promote the adoption of CA practices, particularly a combination of both minimum tillage and crop diversification, given their significant impact on farmer income, an important welfare outcome that has significant implications on food security and poverty alleviation.