A comparative analysis of perceptions on land expropration by commercial and emerging farmers in Limpopo Province of South Africa

Abstract

The land reform programme has been very slow in achieving its goal. The slow process of the land reform program has led to the initiation of the Land expropriation in line with Section 25 of the South African Constitution. The purpose of the Land Expropriation Act is to expedite the process of giving back the land to the rightful owners, taking note that most of the current landowners have secured loans with the financial institutions. This study seeks to find out how commercial farmers and emerging farmers perceive land expropriation. The study was conducted in five districts of the Limpopo province of South Africa. A simple random sampling technique was used to select 150 participants from a population of 230 farmers. The study made use of structured interviews where questionnaires were used as a primary tool to collect data. Descriptive statistic was used to determine socio-economic characteristics. The study revealed that males dominated the farming industry, with males outnumbering females, particularly among emerging farmers. Likert scale and ordinal logistic regression were used to analyse the data. Emerging farmers expressed the view that land should be expropriated. However, commercial farmers indicated that land should not be expropriated as this would lead to increased poverty and unemployment. Inferential statistical results revealed that race is a key socio-economic factor driving differences in perception about land expropriation. Bank officials agreed that land expropriation would have negative implications on interest rates, leading to a decline in the country’s GDP. Policy implementors should consider the concerns of commercial farmers and banking officials regarding the Land Expropriation Act, which may have significant economic implications. Additionally, they should account the socio-economic characteristics that strongly influence farmers' perceptions of land expropriation.