PERCEPTIONS OF RISK AMONG COMMERCIAL FARMERS IN KWAZULU-NATAL IN A CHANGING ECONOMIC ENVIRONMENT

This study analyses the importance and dimensions of risk sources and computer adoptionamong farmers in a changing economic policy and trade environment. A survey was conductedin 1996 among 112 commercial farmers in KwaZulu-Natal. The majority of respondents were infavour 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 importantsources 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 whohave higher levels of education and who use more information sources, whilst operators ofextensive production systems are less likely to adopt computers.