PERCEPTIONS OF RISK AMONG COMMERCIAL FARMERS IN KWAZULU-NATAL IN A CHANGING ECONOMIC ENVIRONMENT / SAMEVATTING: PERSEPSIES VAN RISIKO ONDER KOMMERSIëLE BOERE IN KWAZULU- NATAL IN 'N VERANDERENDE EKONOMIESE OMGEWING

Abstract

This study analyses the importance and dimensions of risk sources and computer adoption among farmers in a changing economic policy and trade environment. A survey was conducted in 1996 among 112 commercial farmers in KwaZulu-Natal. The majority of respondents were in favour of a liberalized trade environment and deregulated domestic product and input markets. Respondents identified changes in the cost of farm inputs, government legislation (tax, labour, and land redistribution), the Rand exchange rate, and product prices as the most important sources of risk. Factor analysis of risk sources showed that various dimensions to risk exist, including changes in government policy, enterprise gross income, credit access and cost changes. Computers, a risk management tool, are more likely to be adopted by larger farm operators who have higher levels of education and who use more information sources, whilst operators of extensive production systems are less likely to adopt computers.