Medicinal plant cultivation and smallholder welfare in Amatole, South Africa: A propensity score analysis

The sustainable use of medicinal plants by smallholder farmers in the Amatole District Municipality in the Eastern Cape Province, South Africa, plays a vital role in rural livelihoods. Despite challenges such as limited inputs, capital, institutional support and market access, the cultivation of medicinal plants significantly contributes to smallholder welfare. However, research valuing this production remains limited. We therefore assessed the welfare effects of smallholder participation in medicinal plant cultivation in Amatole. Primary data were collected from 150 smallholder farmers using structured questionnaires and a multi-stage stratified sampling technique. Descriptive statistics, binary logistic regression and propensity score matching were used for analysis. Findings indicate that female farmers dominate medicinal plant production, with an average age of 44 and 10 years of schooling. The average household size was six, with family labour supporting production. The average farm size was 1 hectare. Extension services played a key role in improving farmers’ knowledge. Participation was profitable, with an average monthly household income of ZAR19 091.72 and a return on investment of 0.71. Binary logistic regression showed that gender, household size, experience, extension visits and environmental protection positively influenced participation, while age and education had negative effects. Propensity score matching results revealed a significant positive impact of cultivation on farmers’ welfare, with an increase of ZAR5624.64 in farm returns at the 5% significance level. To enhance outcomes, we recommend targeted policies that improve funding, extension services and support for female and experienced farmers. Scaling up medicinal plant cultivation can improve rural livelihoods and advance sustainable development in the Amatole District Municipality.