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Participation of Smallholder Farmers in Biofuels Crop and Land Rental Markets: Evidence from South Africa

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  • Mabiso, Athur

Abstract

This study investigates smallholder farmer participation in biofuels-related crop and land rental markets and estimates whether participation is associated with farm income. Multinomial treatment-effects models are estimated using farm household data from 247 South African smallholder farmers. Results reveal, among other things, that receiving price information increases smallholders’ likelihood to participate in biofuels cropping markets by 18% and by 27% the likelihood to participate in biofuels land-rental markets. While not statistically significant, the mean income of smallholders growing biofuels crops is 33% higher than that of those renting land to biofuels firms and 16% higher than that of non-participants.

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Paper provided by International Association of Agricultural Economists in its series 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil with number 126370.

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Date of creation: 2012
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Handle: RePEc:ags:iaae12:126370

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Keywords: Sub Saharan Africa; South Africa; Biofuels contracts; Land rental markets; Smallholder participation; Food Security and Poverty; International Development; Labor and Human Capital; Land Economics/Use; Resource /Energy Economics and Policy; O12; Q12; Q13; Q15; Q16;

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