The Extent and Patterns of Digitalization in Proactive Land Acquisition Strategy (PLAS) Farms in South Africa

Abstract

This study sought to develop an index for agricultural digitalization by applying composite confirmatory analysis (CCA). Another aim was to determine the factors that affect the development of digitalization in PLAS farms. Data on the indicators of the three dimensions of digitalization were collected from 300 Proactive Land Acquisition Strategy (PLAS) farms in South Africa using semi-structured questionnaires. Confirmatory composite analysis (CCA) was employed to reduce the items into three digitalization dimensions and ultimately to a digitalization index. Standardized digitalization index scores were extracted and fitted to a linear regression model to determine the factors affecting digitalization. The results revealed that the model shows practical validity and can be used to measure digitalization as measures of fit (geodesic distance, standardized root mean square residual, and squared Euclidean distance) were all below their respective 95%quantiles of bootstrap discrepancies (HI95 values). Therefore, digitalization is an emergent variable that can be measured using CCA. The average level of digitalization in PLAS farms was 0.02 and varied significantly across provinces. Although farmers have attempted to digitalise their farms, there are still minimal levels of digitalization in PLAS farms. The results further reveal different digitalization patterns. As judged by the estimated weights of various dimensions of digitalization, the use of digital technologies to collect, store, analyse, and disseminate (CSAD) farm-related data contributed more towards the digitalization index. The second most important component of digitalization was automation digitalization. In contrast, value chain digitalization was the least significant contributor. The factors that significantly influence digitalization were age, gender, farm type, network type, and cellular data type. Since PLAS farmers have not embraced much digitalization, it is important to focus on awareness and capacity building. A balanced approach to digitalization would benefit PLAS farms by ensuring that strategies to integrate digital solutions within the value chain are developed. To foster and support the digitalization in PLAS farms, policymakers and stakeholders should tailor their strategies to fit specific socioeconomic factors.