Agriculture and poverty: Farming for food or farming for money?
The dualistic nature of the South African economy manifests itself to a large extent in the agricultural sector, where ownership and access to land was previously reserved and is still mainly controlled by white farmers. This has contributed to the huge disparities in the income levels of black and white agricultural households. In this paper two South African household surveys are used to analyse agricultural inequality using various decomposition techniques. It is found that inequalities within agriculture are higher and more pronounced along racial lines than inequalities among non-agricultural households. Agricultural inequalities also differ structurally from those in the rest of society and are explained largely by differences in the ownership of income-generating assets, and less so by racial wage inequalities. Furthermore, an analysis of agricultural poverty reveals extremely high poverty rates and meagre incomes among black subsistence and small-scale farmer households. These results have important implications for the type of transformation required in the South African agricultural sector, adding weight to the notion that commercialisation is crucial if agriculture is to contribute meaningfully to poverty reduction among the rural black community.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Pauw, Kalie, 2005. "Creating a 2000 IES-LFS Database in Stata," Technical Paper Series 15628, PROVIDE Project.
- Pauw, Kalie, 2005. "A Profile of the Free State Province: Demographics, Poverty, Inequality and Unemployment," Background Paper Series 15616, PROVIDE Project.
- Gilimani, Benedict Mandlenkosi, 2006. "The Economic Contribution of Home Production for Home Consumption in South African Agriculture," Background Paper Series 58066, PROVIDE Project.
When requesting a correction, please mention this item's handle: RePEc:ags:agreko:10122. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.