Post‐Settlement Support Impact on the Welfare of Emerging Farmers’ Households in Limpopo Province, South Africa

Abstract

Several policies and programs have been implemented to improve the welfare of households in rural South Africa through commercialization. Post‐settlement support (PSS) refers to any kind of assistance that emerging farmers received from the government following land restoration. This paper examines the impact of PSS on the welfare of emerging farmers under the land restitution program in Limpopo Province, South Africa. The study involved a simple random sampling method to select 200 emerging farmers. The primary data were analyzed using descriptive statistics and the endogenous switching regression model. Descriptive statistics revealed that ~71% of land restitution beneficiaries received PSS after acquiring their land. The result of the selection model showed that farm characteristics (farming experience, location, and soil quality), and institutional factors (transportation and market participation) influenced the receiving of the PSS by the farmers. The outcome model showed that PSS positively influences household welfare. In addition, demographic factors (gender and household size), farm characteristics (soil quality), and institutional factors (market participation and farmer association membership) influenced the consumption expenditure per capita, hence affecting household welfare. The government should continue supporting female beneficiaries with access to market, training, and extension services for linkages with farmers’ associations as the PSS increases the household welfare.