IDEAS home Printed from https://ideas.repec.org/a/ags/afjare/333935.html
   My bibliography  Save this article

Heterogeneous welfare effects of farmer groups in smallholder irrigation schemes in South Africa

Author

Listed:
  • Phakathi, S.
  • Sinyolo, S.
  • Fraser, G.C.C.
  • Marire, J.

Abstract

This paper analyses the heterogeneous effects of membership of a farmer group on access to water, use of inorganic fertiliser, household incomes, and farm asset holdings. A sample of 401 irrigators in South Africa was analysed using propensity score matching. The study found that group membership had a positive effect on all four outcomes. Group members had an extra four days of access to water in a month, and applied at least 130 kg/ha more inorganic fertiliser, than non-group members. Group members had a higher household income per capita and more assets than non-group members. However, the result revealed a heterogeneous effect among group members, with the benefits varying according to members’ socio-economic characteristics as well as internal group dynamics. The government and private donors should continue to promote the formation and organisation of farmers into groups. The role of group membership in farming outcomes can be enhanced if smaller groups are promoted. It is also crucial that strategies for promoting trust, reciprocity and group commitment be implemented for better group outcomes.

Suggested Citation

  • Phakathi, S. & Sinyolo, S. & Fraser, G.C.C. & Marire, J., 2021. "Heterogeneous welfare effects of farmer groups in smallholder irrigation schemes in South Africa," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 16(1), March.
    • Handle: RePEc:ags:afjare:333935
    DOI: 10.22004/ag.econ.333935
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/333935/files/3.-Phakathi-et-al.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.333935?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Esther Duflo & Michael Kremer & Jonathan Robinson, 2011. "Nudging Farmers to Use Fertilizer: Theory and Experimental Evidence from Kenya," American Economic Review, American Economic Association, vol. 101(6), pages 2350-2390, October.
    2. repec:oup:apecpp:v:37:y:2015:i:1:p:86-106 is not listed on IDEAS
    3. Sebhatu, Kifle T. & Gezahegn, Tafesse W. & Berhanu, Tekeste & Maertens, Miet & Passel, Steven Van & D'Haese, Marijke, 2021. "Exploring variability across cooperatives: economic performance of agricultural cooperatives in northern Ethiopia," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 24(3), March.
    4. Tafesse W. Gezahegn & Steven Van Passel & Tekeste Berhanu & Marijke D'Haese & Miet Maertens, 2019. "Big is efficient: Evidence from agricultural cooperatives in Ethiopia," Agricultural Economics, International Association of Agricultural Economists, vol. 50(5), pages 555-566, September.
    5. Barham, James & Chitemi, Clarence, 2009. "Collective action initiatives to improve marketing performance: Lessons from farmer groups in Tanzania," Food Policy, Elsevier, vol. 34(1), pages 53-59, February.
    6. Judy L. Baker, 2000. "Evaluating the Impact of Development Projects on Poverty : A Handbook for Practitioners," World Bank Publications - Books, The World Bank Group, number 13949.
    7. Sikhulumile Sinyolo & Maxwell Mudhara, 2018. "Collective action and rural poverty reduction: Empirical evidence from KwaZulu-Natal, South Africa," Agrekon, Taylor & Francis Journals, vol. 57(1), pages 78-90, January.
    8. Nguyen Viet, Cuong, 2006. "An Introduction to Alternative Methods in Program Impact Evaluation," MPRA Paper 24900, University Library of Munich, Germany.
    9. Ellen Verhofstadt & Miet Maertens, 2015. "Can Agricultural Cooperatives Reduce Poverty? Heterogeneous Impact of Cooperative Membership on Farmers' Welfare in Rwanda," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 37(1), pages 86-106.
    10. Abebaw, Degnet & Haile, Mekbib G., 2013. "The impact of cooperatives on agricultural technology adoption: Empirical evidence from Ethiopia," Food Policy, Elsevier, vol. 38(C), pages 82-91.
    11. Markelova, Helen & Meinzen-Dick, Ruth & Hellin, Jon & Dohrn, Stephan, 2009. "Collective action for smallholder market access," Food Policy, Elsevier, vol. 34(1), pages 1-7, February.
    12. Marco Caliendo & Sabine Kopeinig, 2008. "Some Practical Guidance For The Implementation Of Propensity Score Matching," Journal of Economic Surveys, Wiley Blackwell, vol. 22(1), pages 31-72, February.
    13. Paul Mosley & Linda Mayoux, 1999. "Questioning virtuous spirals: micro-finance and women's empowerment in Africa," Journal of International Development, John Wiley & Sons, Ltd., vol. 11(7), pages 957-984.
    14. Bachke, Maren Elise, 2019. "Do farmers’ organizations enhance the welfare of smallholders? Findings from the Mozambican national agricultural survey," Food Policy, Elsevier, vol. 89(C).
    15. Ouma, Emily Awuor & Abdulai, Awudu, 2009. "Contributions of Social Capital Theory in Predicting Collective Action Behavior among Livestock Keeping Communities in Kenya," 2009 Conference, August 16-22, 2009, Beijing, China 49994, International Association of Agricultural Economists.
    16. Nilsson, Jerker, 2001. "Organisational principles for co-operative firms," Scandinavian Journal of Management, Elsevier, vol. 17(3), pages 329-356, September.
    17. Phakathi, Sandile & Sinyolo, Sikhulumile & Marire, Juniors & Fraser, Gavin, 2021. "Farmer-led institutional innovations in managing smallholder irrigation schemes in KwaZulu-Natal and Eastern Cape Provinces, South Africa," Agricultural Water Management, Elsevier, vol. 248(C).
    18. Cele, Lungelo & Wale, Edilegnaw, 2018. "The role of land- and water-use rights in smallholders’ productive use of irrigation water in KwaZulu-Natal, South Africa," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 13(4), December.
    19. Shiferaw, Bekele A. & Obare, Gideon A. & Geoffrey, Muricho & Silim, Said, 2009. "Leveraging institutions for collective action to improve markets for smallholder producers in less-favored areas," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 3(1), pages 1-18, March.
    20. Deborah A. Cobb‐Clark & Thomas Crossley, 2003. "Econometrics for Evaluations: An Introduction to Recent Developments," The Economic Record, The Economic Society of Australia, vol. 79(247), pages 491-511, December.
    21. Ma, Wanglin & Abdulai, Awudu, 2016. "Does cooperative membership improve household welfare? Evidence from apple farmers in China," Food Policy, Elsevier, vol. 58(C), pages 94-102.
    22. Michael Morris & Valerie A. Kelly & Ron J. Kopicki & Derek Byerlee, 2007. "Fertilizer Use in African Agriculture : Lessons Learned and Good Practice Guidelines," World Bank Publications - Books, The World Bank Group, number 6650.
    23. Fischer, Elisabeth & Qaim, Matin, 2012. "Linking Smallholders to Markets: Determinants and Impacts of Farmer Collective Action in Kenya," World Development, Elsevier, vol. 40(6), pages 1255-1268.
    24. Sascha O. Becker & Andrea Ichino, 2002. "Estimation of average treatment effects based on propensity scores," Stata Journal, StataCorp LP, vol. 2(4), pages 358-377, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bachke, Maren Elise, 2019. "Do farmers’ organizations enhance the welfare of smallholders? Findings from the Mozambican national agricultural survey," Food Policy, Elsevier, vol. 89(C).
    2. Gezahegn, Tafesse & Van Passel, Steven & Berhanu, Tekeste & D'Haese, Marijke & Maertens, Miet, 2020. "Structural and Institutional Heterogeneity among Agricultural Cooperatives in Ethiopia: Does it Matter for Farmers’ Welfare?," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 46(2), August.
    3. Verhofstadt, Ellen & Maertens, Miet, 2013. "Cooperative membership and agricultural performance: Evidence from Rwanda," Working Papers 157389, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics.
    4. Shumeta, Zekarias & D'Haese, Marijke, 2016. "Do coffee cooperatives benefit farmers? An exploration of heterogeneous impact of coffee cooperative membership in Southwest Ethiopia," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 19(4), August.
    5. Min‐Han Tsai & Yir‐Hueih Luh, 2023. "Group heterogeneity and the economic effect of farmer organisation participation: Empirical evidence from Taiwan," Journal of Agricultural Economics, Wiley Blackwell, vol. 74(2), pages 473-491, June.
    6. Adjin, K. Christophe & Goundan, Anatole & Henning, Christian H. C. A. & Sarr, Saer, 2020. "Estimating the impact of agricultural cooperatives in Senegal: Propensity score matching and endogenous switching regression analysis," Working Papers of Agricultural Policy WP2020-10, University of Kiel, Department of Agricultural Economics, Chair of Agricultural Policy.
    7. Jerzy Michalek & Pavel Ciaian & Jan Pokrivcak, 2018. "The impact of producer organisations on farm performance: A case study of large farms in Slovakia," JRC Research Reports JRC108059, Joint Research Centre.
    8. Margitta Minah, 2022. "What is the influence of government programs on farmer organizations and their impacts? Evidence from Zambia," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 93(1), pages 29-53, March.
    9. Yuanyuan Peng & H. Holly Wang & Yueshu Zhou, 2022. "Can cooperatives help commercial farms to access credit in China? Evidence from Jiangsu Province," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 70(4), pages 325-349, December.
    10. Kuhle Prudence Mnisi & Abdul Latif Alhassan, 2021. "Financial structure and cooperative efficiency: A pecking‐order evidence from sugarcane farmers in Eswatini," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 92(2), pages 261-281, June.
    11. Wanglin Ma & Hongyun Zheng & Yueji Zhu & Jianling Qi, 2022. "Effects of cooperative membership on financial performance of banana farmers in China: A heterogeneous analysis," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 93(1), pages 5-27, March.
    12. Ji, Chen & Jin, Songqing & Wang, Haitao & Ye, Chunhui, 2019. "Estimating effects of cooperative membership on farmers’ safe production behaviors: Evidence from pig sector in China," Food Policy, Elsevier, vol. 83(C), pages 231-245.
    13. Ellen Verhofstadt & Miet Maertens, 2014. "Smallholder cooperatives and agricultural performance in Rwanda: do organizational differences matter?," Agricultural Economics, International Association of Agricultural Economists, vol. 45(S1), pages 39-52, November.
    14. Kampmann, Willi & Kirui, Oliver Kiptoo, 2021. "Role of Farmers’ Organizations in Agricultural Transformation in Africa: Overview of Continental, Regional, and Selected National Level Organizations," Working Papers 309358, University of Bonn, Center for Development Research (ZEF).
    15. Jan Falkowski & Pavel Ciaian, 2016. "Factors Supporting the Development of Producer Organizations and their Impacts in the Light of Ongoing Changes in Food Supply Chains: A Literature Review," JRC Research Reports JRC101617, Joint Research Centre.
    16. Mojo, Dagne & Fischer, Christian & Degefa, Terefe, 2015. "Who benefits from collective action? Determinants and economic impacts of coffee farmer cooperatives in Ethiopia," 2015 Conference, August 9-14, 2015, Milan, Italy 211889, International Association of Agricultural Economists.
    17. Musa Hasen Ahmed & Hiwot Mekonnen Mesfin, 2017. "The impact of agricultural cooperatives membership on the wellbeing of smallholder farmers: empirical evidence from eastern Ethiopia," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 5(1), pages 1-20, December.
    18. David L. Ortega & Aniseh S. Bro & Daniel C. Clay & Maria Claudia Lopez & Espoir Tuyisenge & Ruth Ann Church & Alfred R. Bizoza, 2019. "Cooperative membership and coffee productivity in Rwanda’s specialty coffee sector," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 11(4), pages 967-979, August.
    19. Blekking, Jordan & Gatti, Nicolas & Waldman, Kurt & Evans, Tom & Baylis, Kathy, 2021. "The benefits and limitations of agricultural input cooperatives in Zambia," World Development, Elsevier, vol. 146(C).
    20. Baiyegunhi, L.J.S. & Majokweni, Z.P. & Ferrer, S.R.D., 2019. "Impact of outsourced agricultural extension program on smallholder farmers’ net farm income in Msinga, KwaZulu-Natal, South Africa," Technology in Society, Elsevier, vol. 57(C), pages 1-7.

    More about this item

    Keywords

    Farm Management;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:afjare:333935. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaaeaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.