Agriculture Reference
In-Depth Information
Analysis of Production and Consumption of Organic Products in South Africa
http://dx.doi.org/10.5772/58356
The ordered probit model results are presented in Table 2. The model successfully estimated
the significant variables associated with the farmer's adoption decisions. The Huber/White/
sandwich variances estimator was used to correct for heteroscedasticity. The explanatory
variables collectively influence the farmer's decision to be a certified organic with the chi-
square value significant at one percent. The following variables were found to be significant
determinants in the organic farming adoption decision by smallholder farmers in the study
area: age, household size, land size, locational setting of the farmer depicted by the sub-wards
Ogagwini, Ezigani, and Hwayi, farmer's risk attitude, livestock ownership (chicken and goat
ownership), land tenure security as depicted by the rights the farmer can exercise on his/her
own cropland to build structures and asset ownership.
Variables
Parameter
Robust std error
P-values
Age
0.0194072
0.0079204
0.014***
Gender
0.3796234
0.2707705
0.161
Household size
0.0504668
0.0271520
0.063*
Land size
-0.2352607
0.1083583
0.030**
Off Farm Income
-0.0001223
0.0001129
0.279
Location (sub-ward)
Location (1= ogagwini)
2.894311
0.6380815
0.000***
Location (1=ezigani)
4.191274
0.7234394
0.000***
Location (1=hwayi)
5.158803
0.8495047
0.000***
Risk attitudes
-0.759508
0.3773067
0.044**
Fertility (Manure )
Chicken ownership
0.0424046
0.0148472
0.004***
Cattle ownership
-0.0418692
0.0431078
0.331
Goat ownership
-0.1005212
0.0569375
0.077*
Land tenure rights
Land tenure (1= build structures)
0.4803418
0.2372247
0.043**
Land tenure (1= plant trees)
0.0235946
0.3023182
0.938
Land tenure (1= bequeath)
0.1335225
0.2619669
0.610
Land tenure (1= lease out)
-0.3840883
0.2593139
0.139
Land tenure (1= sell land)
0.0829177
0.2978485
0.781
Asset ownership
0.5853967
0.205389
0.004***
Significance levels: *** p<0. 01: ** p<0. 05: * p<0. 1
(Source: Field Data)
Table 2.
Adoption of organic farming among smallholder farmers: Ordered probit model results
