Participation of Smallholder Farmers in Biofuels Crop and Land Rental Markets: Evidence from South Africa
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This study investigates smallholder farmer participation in biofuels-related crop and land rental markets and estimates whether participation is associated with farm income. Multinomial treatment-effects models are estimated using farm household data from 247 South African smallholder farmers. Results reveal, among other things, that receiving price information increases smallholders’ likelihood to participate in biofuels cropping markets by 18% and by 27% the likelihood to participate in biofuels land-rental markets. While not statistically significant, the mean income of smallholders growing biofuels crops is 33% higher than that of those renting land to biofuels firms and 16% higher than that of non-participants.