Profit efficiency in family-owned crop farms in Eastern Cape Province of South Africa: a translog profit function approach

Abstract Background Farm productivity on smallholder family-owned crop farms remains low despite several interventions to transform agriculture especially in developing countries. Farmers rural areas face serious constraints that impede their productive capacities for the principal dietary staple, notably maize. Smallholder farmers have access unprofitable markets turn make enterprises less profitable. Efforts commercialise maize production not yielded desired results. This study, therefore, estimates profit efficiency and its determinants cropping systems Eastern Cape Province of South Africa. Methodology A random sample 158 was selected. normalised translog function then fitted by means a one-step estimation technical using STATA software. Results The results indicate cost fertiliser area under cultivation were positive drivers profitability. Complementarities among resources very important profit. Conclusion study concludes effect production. profits rise with cultivated farms. Therefore, recommends policy favouring commercialisation would improve farm profits.