Assessing the impact of the 2020 presidential economic stimulus Initiative on smallholder farmers` household food security status: empirical evidence from Ngaka Modiri Molema district, South Africa.

Abstract

Persistent poverty and food insecurity remain critical global challenges despite numerous efforts by various stakeholders to address them. These issues are particularly acute in rural regions, where the majority of the affected population depends on agriculture and related activities for their livelihoods. Enhancing agricultural productivity has been widely recognized as a means of increasing household income and improving household food security among smallholder farmers. In line with this, input subsidy programs, such as the Presidential Employment Stimulus Initiative (PESI), have been implemented to provide smallholders with essential agricultural inputs, including seeds and fertilizers, thereby raising productivity levels. This study examines smallholder farmers’ perceptions of PESI, identifies the factors influencing these perceptions, and assesses the program’s impact on household food security. A total of 231 smallholder households, comprising both program beneficiaries and nonbeneficiaries, were selected for the study. Data were collected using a structured questionnaire. Descriptive statistics were used to assess overall perceptions, while an ordered probit model was employed to determine the factors influencing perceptions. Propensity Score Matching (PSM) and Average Treatment Effect on the Treated (ATT) were used to estimate the program’s impact on household food security. The findings reveal that smallholder farmers generally hold favourable perceptions towards PESI, indicating its potential acceptability within agricultural policy frameworks. Significant determinants of perception included gender, age, education level, communication channels, and household total income. The ATT results indicate that the program has had a positive effect on household food security. The study recommends that the government enhance program effectiveness by improving beneficiary targeting mechanisms to ensure resources are directed towards those who are most in need and are best positioned to deliver the intended outcomes, ensuring agro-dealers charge accordingly, enhancing outreach and support, and improving program evaluation and monitoring.