Abstract

The aim of this study is to evaluate the efficiency of the small scale farmers for the production year 2006/2007 in Limpopo province using policy analysis matrix. A total of twelve production systems were selected. Result shows that all were profitable under market condition with existing policies and all except dry land maize had comparative advantage suggesting efficiency in the systems. Ranking the systems in term of private cost ratio and domestic resource cost, irrigated vegetables like potatoes, cabbages and tomatoes had higher profitability and comparative advantages than field crops like both dry and irrigated maize, peanut and beans. Despite competiveness in all and comparative advantage in most systems, these was not due to policy intervention as incentive indicators, e.g. subsidy ratio to producers, shows that all production systems are being taxed indicating little motivation from policies for small scale farmers to production.

Key words:  Policy analysis matrix, small-scale farmers, efficiency, South Africa.