The residuality of agriculture and the time dimensions of rural employment in South Africa

There has been increasing recognition in the past few decades that rural households in developing countries are not limited to the agricultural sector, but also depend on other, nonagricultural activities. Rural households are understood to pursue multiple livelihood strategies which involve juggling different economic pursuits as a means of reducing risk and maintaining options. In South Africa, the importance of multiple livelihood strategies is widely appreciated, on the other hand there is a common perception in policy circles that agricultural development can become an important route out of poverty, for instance as part-time small-scale farmers become larger and more commercialised. The purpose of this dissertation is to attempt to better understand the relationship between households’ participation in agriculture and nonagricultural activities. The point of departure is the observation that there is a great deal of flux into and out of agriculture in a way that is difficult to understand in terms of prevailing theories and frameworks. The study makes use of four waves of data from the National Income Dynamics Study (NIDS), and employs a variety of analytical approaches, including transition matrices, multinomial logistic regression, and panel data econometric models. The findings are mixed. In the one hand, there is evidence that households enter agriculture as other income sources become available, and leave agriculture again when those sources dry up. On the other hand, there is also evidence that participation in agriculture compensates for the absence or loss of other income sources, in which case agriculture can be thought of as a ‘residual’ sector that is activated when other options fail