The role of property rights to grazing lands in small-scale farmers development in he Kat river valley

Property rights are social institutions that define and delimit the range of privileges granted to individuals of specific resources, such as land and water. They are the authority to determine different forms of control over resources thus determining the use, benefits and costs resulting from resource use. That is, they clearly specify who can use the resources, who can capture the benefits from the resources, and who should incur costs of any socially harmful impact resulting from the use of a resource. In order to be efficient property rights must be clearly defined by the administering institution whether formal or informal and must be accepted, understood and respected by all the involved individuals and should be enforceable. These institutions influence the behaviour of individuals hence the impact on economic performance and development. The paper has attempted to determine how the situation of property rights to grazing lands affects the development of smallholders in the Kat River Valley. Data was collected from 96 households who were selected using random sampling. To capture data, a questionnaire was administered through face-to-face interviews. Institutional analysis and ANOVA were used for descriptive analysis to describe the property rights situation, security of property rights and the impact on smallholder development. The results show that some rights holders have secure rights to grazing land resources while other farmers have insecure rights to grazing land resources. The results from institutional analysis show that the situation of property rights negatively affects resource use and management in the Kat River Valley. There are various institutional factors that negatively affect development of smallholder farmers in the Kat River Valley. Based on the research findings, some policy recommendations are made. These include consideration of the local context and strengthening of the protection of property rights.