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THE AGRARIAN RURAL HOUSEHOLD ECONOMY

THE AGRARIAN RURAL HOUSEHOLD ECONOMY

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any kind of waged employment. Our sample finds a<br />

much higher percentage of waged employment: indeed,<br />

it is the primary source of income for almost 60% of<br />

individuals in the survey. This does not automatically<br />

mean it is the highest source of income for the household,<br />

especially where the average household income (below)<br />

is around R2,600/month. This points to very low wages<br />

that can be outstripped by the value of social grants,<br />

low as they are, as the primary source of income for<br />

households. This line of enquiry may be followed up in<br />

future, to obtain more specific indications of household<br />

sources of income.<br />

Own business or self-employed was given as the main<br />

source of income for 4.1% of the sample, compared with<br />

FIGURE 15: SECONDARY SOURCE OF INCOME (N=1,510)<br />

Pension and<br />

other grants<br />

Wages perm<br />

off farm<br />

Wages casual<br />

off farm<br />

Agricultural production: Earlier we saw that 28% of<br />

respondents were classified by household members as<br />

farmers. Yet agricultural production is the main source of<br />

income in only 2.2% of cases, with another 6% relying<br />

on agriculture as a secondary source of income. This<br />

suggests either that those who consider themselves farmers<br />

are not producing food for one reason or another or are<br />

producing but are not selling. There is a long history of<br />

low income from agriculture in South African rural<br />

households outside of commercial agriculture. The 1993<br />

SALDRU survey 4 showed that agricultural production (both<br />

sold and consumed) constituted just 3.4% of total<br />

household income nationally, and 6.8% in KZN (May,<br />

1996:17). The 1997 Rural Survey (Stats SA, 1999) showed<br />

<strong>THE</strong> <strong>AGRARIAN</strong> <strong>RURAL</strong> <strong>HOUSEHOLD</strong> <strong>ECONOMY</strong> REPORT<br />

5.5% who indicated that their main form of employment<br />

was own business or self-employment (Table 6). The<br />

category ‘own business’ includes taxi owners, spaza<br />

shops and funeral parlour owners and informal trader.<br />

In comparison, the 2010 GHS (Stats SA, 2011a:37)<br />

indicates 13% of households derived their main source<br />

of income from own business, but that includes urban<br />

households. In the S&T survey (2008:14), 12% of<br />

respondents in ISRDP nodes had some kind of income<br />

from own business. This could indicate a slightly wider<br />

group which does not get its main income from this<br />

source, but does get some. In our survey another 5% of<br />

respondents indicated own business as a secondary<br />

source of income (Figure 15), making 9% in total.<br />

Wages perm<br />

on farm<br />

Wages<br />

seasonal/<br />

casual on farm<br />

Own business<br />

or self<br />

employment<br />

Agric<br />

production Other<br />

that farming was the main source of income for only<br />

2.7% of rural households. The picture has therefore not<br />

changed much since the 1990s in this regard. .<br />

This is not to say that everyone doing agriculture should<br />

rely on it as their primary source of income. Historical<br />

data show that the poorest households rely on agricultural<br />

production most heavily for own consumption, even if it<br />

is small amounts, while richer households tend to use<br />

agriculture as an income generator (May, 1996:23). .<br />

4 Project for Statistics on Living Standards and Development, based on a<br />

survey of 9000 urban and rural households, and 40000 people<br />

42

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