Impact of Recapitalisation and Development Programme on Performance of Land Reform Beneficiary Farmers in KwaZulu-Natal, South Africa

Providing appropriate post-settlement support to farmers is crucial for sustainable development of smallholder agriculture in South Africa. In unravelling this, the South Africa’s Recapitalization and Development Programme (RADP) was initiated. Hence, this study analysed the impact of RADP on performance of land reform beneficiary farmers in KwaZulu-Natal, South Africa. A multistage sampling procedure was used to select (n = 264) respondents for the study. Accounting for endogeneity issues in RADP assessments and its impact on the performance of land reform farmers, an endogenous switching regression model (ESRM) was employed. In the same vein, a doubly-robust inverse probability weighted regression adjustment was used as credible remedy for potentially biased estimates of ATT and POM of endogenous treatment model. The main findings revealed that tax compliance, secondary organization, legal entity, farm potential income at acquisition, farmers receiving third party assistance and strategic partnership were statistically significant in influencing the participation of farmers in RADP. Mentorship remains an extremely challenging element in post-settlement. However, through the strategic partnership of RADP farmers had likelihood to improve the farm and increase farm income. The results of the suggest that the RADP can contribute to a deep process of change and empowerment of farmers. In the same vein, strategic partnership of RADP is likely to improve the farmers’ performance. Therefore, there is a need to strongly improve mentorship and strategic partnership programme to encourage participation of land reform farmers in the support programmes.