The costs and benefits of providing agricultural support services to rural households in the developing areas of South Africa
Kirsten, J.; Zyl, J. van
Development Southern Africa 13(3): 415-428
1996
ISSN/ISBN: 0376-835X DOI: 10.1080/03768359608439903Document Number: 562128
An examination is presented of the costs and benefits of improving small farmer's access to basic agricultural services such as extension, credit, inputs, mechanization and markets in the former homelands of South Africa. Discussion is focused on the Farmer Support Programme initiated by the Development Bank of Southern Africa with the specific aim of dealing with the constraints faced by smallholder farmers in these areas. The calculations and arguments presented demonstrate that the benefits of support programmes are much greater than the capital outlays and recurrent costs of the implementing agent, resulting in financial rates of return for the programmes significantly higher than the opportunity cost of capital.