AN APPLICATION OF PROBIT ANALYSIS TO FACTORS AFFECTING SMALL-SCALE FARMERS' DECISION TO PARTICIPATE IN THE FARMER SUPPORT PROGRAM: A CASE STUDY IN THE EASTERN CAPE PROVINCE OF SOUTH AFRICA
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Undoubtedly, the Farmer Support Program (FSP) has been the most significant initiative at
promoting structural change, away from subsistence farming towards commercialisation of
agriculture in South Africa. The implementation and effects of the FSP have been
exhaustively analysed, and the initiative has been judged to be mostly successful. This paper
reports on a different issue related to the FSP : An analysis of the farm and household
characteristics that may be used to predict the likely participation of small-scale farmers in
the FSP. Probit analysis was used to analyse data obtained from 100 participants and nonparticipants
in the Keiskammahoek FSP in the Eastern Cape Province. The analysis yielded a
correct prediction in 78.6% of cases.