Agriculture Reference
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in households indulging in various activities. This results mostly in rural-urban migration;
a typical practice in South Africa as noted by Davis (2003).
Although the above discussion portrays diversification into non-farm activities as widespread,
Barrett et al. (2001) noted that not all households enjoy equal access to attractive non-farm
income opportunities. Selected households with human or physical capital diversify out
of agriculture into non-farm income sources as a refuge from low return semi-subsistence
farming, which has little prospect for economic advancement (Deininger and Olinto, 2001).
Only households which can meet the investment requirements for entry into remunerative
non-farm activities are able to diversify. Those who own sufficiently high levels of assets, are
able to access credit or possess the required skills will be able to make full use of opportunities
for increased returns to labour provided by rural non-farm income sources.
2.4 Determinants of household activity choice and diversification
De-Janvry and Sadoulet (2001), in their study in Mexico, pointed out that gaining a
good understanding of the origins of non-farm activities and determinants of households'
participation in these activities, coupled with levels of income achieved, is essential for
the design of effective policies for rural development. Several studies suggest that rural
households' diversification into non-farm activities is influenced by individual characteristics,
household characteristics and community characteristics (Davis, 2003; Bryceson, 2002;
Sanchez, 2005; Matsumoto et al., 2006). An attempt is made below to examine each of
these factors and analyse among all the variables in each of the three components that affect
the household's successful participation in diversified income generating activities.
2.4.1 Individual characteristics
Individual characteristics expected to influence participation in various income generating
activities and income include age, gender, marital status and level of education. Age
influences the way the individual values the future, choice of livelihood strategies and
the propensity to invest (Schwarze, 2004). Age may increase the likelihood to participate
in agriculture relative to migratory activities especially for elderly heads of household
(Matsumoto et al. , 2006). The older one gets, the more likely it is to select more sedentary
or home-based activities (Matsumoto et al. , 2006).
A gender perspective adds significant insight into rural poverty and livelihood issues
(Davis, 2003). During this research, gender has emerged as an important factor influencing
participation patterns in rural non-farm income activities. Regarding gender and marital
status, Matsumoto et al. (2006) in their studies in Ethiopia, Kenya and Uganda, found
that larger proportions of individuals in non-farm activities are male and single. Compared
to women, male individuals are more willing to explore opportunities, and single people
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