CLIMATE RISK AVERSION OPTIONS FOR SUSTAINABLE AGRICULTURE. A CASE OF INFORMATION COMMUNICATION TECHNOLOGY, MIXED CROPPING AND CAUTIONARY SAVINGS

Abstract

The upsurge in frequency and severity of extreme weather events demands proactive conservation and modification of the environment for sustainable agricultural development. Farmers take cognizance of risk and uncertainty while making choice of appropriate farm management practices. The study examined climate risk aversion options for sustainable agricultural development in selected areas of Mpumalanga province. The stratified random sampling was adopted to interview 290 smallholder sugar cane farmers in Driekoppies, Nkomazi Local Municipality Mpumalanga, South Africa. The study used the multivariate model to determined possible correlation between the application and use of information communication technology, mixed farming and cautionary savings as climate risk management strategies. Findings extrapolated the relevance of climate risk management and adoption decision. The effect of dependent variables on covariate variables used in the analysis were not homogenous. Nevertheless, age of respondents, level of education, flood risk perception, farm size, risk aversion and off-farm activities were the independent variables that influenced the adoption of risk management approach in context. The risk valuation strategies on seasonal climate information by farmers is important.