Towards a viable farm size – determining a viable household income for emerging farmers in South Africa's Land Redistribution Programme: an income aspiration approach

Abstract

ABSTRACT The purpose of this article is to propose an improved methodology to determine a viable farm size for potential emerging farmers as land reform beneficiaries. Land reform in South Africa has been criticised because of poor implementation and slow pace, accompanied by poor productivity in redistributed land. To explain this, it has been suggested that commercial farms are too large for emerging farmers who have little or no experience in commercial farming. Thus, there have been calls for measures to make subdivision of land easier and cheaper. To this end, cross–sectional survey data from 833 potential emerging farmers in three rural provinces are analysed to determine a viable income for emerging farm households as a basis for calculating a viable farm size, using the income aspiration literature, farm household economics theory as a point of departure. Off–farm income, farm income and aspirational income are included in the calculation. The viable income was matched to the existing commercial farm enterprise gross margins per hectare obtained from the Bureau for Food and Agricultural Policy, which are then used as the basis for suggesting “viable farm sizes” for different emerging farm households.