Determinants of Commercialization on Recapitalised Farms in Gauteng Province

Abstract

This study was conducted to assess the determinants of commercialisation of recapitalised farms in Gauteng Province. The specific objectives of the study are: to determine the monetary value of recapitalisation versus the current level of production on farms, when measured on a commercial scale; to determine the constraints that affect recapitalised farms in operating on a commercial scale; and to determine whether the recapitalisation of farms has improved the livelihoods of beneficiaries, the socio-economic status of farm workers, farm infrastructure, machinery, implements and farm cash flow. The purposive sampling instead random sampling was used in the current study, based on the accessibility and availability of the limited number of recapitalised rural development and land reform farms in Gauteng. A questionnaire was used as the data-gathering tool in the current study. A multiple regression model and correlation coefficient will be used to explore the relationship between government capital spending, farm operation, productivity, benefit of farm beneficiaries and farm profits. The results revealed that R28 382 452.00 was used for recapitalisation investment on 20 farms, with the total capacity of 6 606.85ha. Recapitalisation fund spending was largely implemented on crop farming, at 54%, followed by mixed farming (crop and animals) at 28%. The determinants of commercialisation on recapitalised farms in Gauteng were assessed through production improvement, and expenditure versus return variables for sustainable operations.