The Economics Analysis of Small Scale Vegetable Production in North Central Namibia

Abstract

In this paper, we attempted to identify determinants of farmers' participation in Green Scheme project and determinants of profits once farmers are in the project. Furthermore, we have attempted to investigate whether there is any difference in profitability between project farmers and other farmers operating own horticultural enterprises within the vicinity of the project. This paper has focused primarily on Etunda Green Scheme Project and other farmers in the Olushandja area. We used the Heckman's Sample Selection Model to address the issue of farmers' self-selection into the project. The study found that owning a car (proxy for wealth) and the project plot size are the most significant determinants of farmers' participation in the project. The study also found that the level of education and ability to hire labor are critical determinants of profitability for project farmers.