Rural income dynamics in post-apartheid South Africa: implications for reduction of poverty and income inequality - Institutional Constraints to Small Farmer Development in Southern Africa - page 74

livestock production in the province. Households produce their food and generate income
from farming activities. Both livestock and crop farming are practised in the area but
mostly at a lower scale. Beinart and Wotshela (1995) noted that the rate of cultivation in
Stutterheim has dropped during the past few years probably because very few landowners
or tenants are able to command sufficient land, capital and labour to produce significant
amounts of output.
The study employed household and community data collected from Stutterheim in March
2008. Primary data were generated by means of structured questionnaires administered
on a total of 79 households, as well as interview schedules and checklists for purposes of
collecting community-level data. Secondary data were gathered by means of extensive
document analysis and discussions with knowledgeable persons, including extension
workers serving the two study communities.
4.2.3 Data and model structure
The study employed a multi-stage sampling technique with stratified and random
procedures. Purposive sampling was used to choose one peri-urban community and
one rural community. Two communities namely Mlungisi and Ndakana were randomly
selected for the study. Finally, households were selected randomly for enumeration. Data
was collected on both socio-economic aspects and different sources of income using a semi-
structured questionnaire.
Household income in this study refers to the actual income earned from different sources in
2007, including monetary income or income in kind. The 12 months were chosen because
the period is not too long for household members to recall their income with a good
degree of precision. Income components for this study are broadly categorised as farm and
non-farm income. Classification of sources of income in this study follows almost similar
classification as that adopted by Fraser et al. (2003) in Guquka and Koloni villages. These
villages are in the same district with the present study area. The following classification of
activities was used for income.
1. Own agriculture income (income earned from agriculture-crop, poultry and livestock).
2. Own business income (income from activities such as industry, transportation,
construction, and services).
3. Remittances (money or goods received from migrant household member by the
household).
4. Wage income (income earned from formal or informal wage employment, including
salaries, allowances, bonuses, and other kinds of remuneration).
5. Inheritance and grants - incomes without quid pro quo, such as pensions, transfers,
grants/subsidies, rents, and financial income.