Water irrigation costs and farm outputs : a case of selected crops in Limpopo Province

Abstract

Water scarcity is a problem for many countries across the world. Limpopo Province is no exception, as the province has regions that are arid and/or semi-arid. The accessibility of water and the management of water is amongst the critical issues faced by some of the rural farmers in the Limpopo Province. The challenge of inappropriate and inefficient use of modern irrigation technologies is associated with the exorbitant investment and operation costs, resulting in poor irrigation practices by smallholder farmers in the province, mainly affecting the production of citrus, avocado, nuts, potatoes and tomato production resulting in reduced yields and revenues. The study conducted a case study on the selected crop in the Limpopo Province, which included crops such as citrus, nuts, avocados, potatoes and tomatoes. The objectives of the study are to examine the influence that investments in water irrigation infrastructure has on the volume of farm yield, as well as to examine the influence of the cost of water irrigation systems on the volume of farm yield on the selected crops. The study used a survey research design, together with a mixed-method approach, whereby 50 farmers were purposively sampled in the Limpopo province. Primary data were collected from a focus group discussion and the administration of a questionnaire. A multivariate analysis was used to analyse the data. Out of 50 farmers, only 48 responded, which is a 96% response rate. From the analysis, the study found that investment in water irrigation has a positive and significant influence on the farm yield at a 0.01 confidence level. Furthermore, the OLS regression shows that a positive and significant relationship exists between the total cost index for Citrus and the farm yield. The total cost index has a varying effect on the distribution of farm yield. It is expected that an increase in the level of education will increase revenue. Overall, the industry may also need to look at the introduction of hybrid systems that are more cost-effective, that take advantage of solar and wind energy. Future research can look at the different crops in different provinces of South Africa.