Risk perceptions and management strategies by smallholder farmers in KwaZulu-Natal Province, South Africa
Risk is a central issue in rural areas that affects many different aspects of peopleâ€™s livelihoods in the developing world. Unless well managed, risks in agriculture can slow development and hinder poverty reduction. Farmersâ€™ perceptions of and responses to risk are therefore important in understanding their risk behaviour. This paper examines risk perceptions and management strategies using field data collected from 200 smallholder rural farmers. The relationships between various socioeconomic characteristics and perceived sources of risk were also examined. In general, price, production and financial risks were perceived as the most important sources of risk. Using Principal Components Analysis, seven principal components (PCs) that explained 66.13% of the variation were extracted. Socio economic factors identified to have a significant relationship with the various sources of risk are age, gender, education, location, information access and risk-taking ability. The most important traditional risk management strategies used by the surveyed farmers were identified as crop diversification, precautionary savings and participating in social networks. The result of this study provides useful insights for policy makers, advisers, developers and sellers of risk management instruments.
Volume (Year): 01 (2012)
Issue (Month): 3 (March)
|Contact details of provider:|| Web page: http://www.ijagman.org|
Web page: http://www.ifmaonline.org/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Feigenbaum, James, 2011. "Precautionary saving or denied dissaving," Economic Modelling, Elsevier, vol. 28(4), pages 1559-1572, July.
- MacNicol, R. & Ortmann, Gerald F. & Ferrer, Stuart R.D., 2007. "Perceptions of key business and financial risk by large-scale sugarcane farmers in KwaZulu-Natal in a dynamic socio-political environment," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 46(3), pages -, September.
- Adesina, Akinwumi A. & Brorsen, B. Wade, 1987.
"A Risk Responsive Acreage Response Function for Millet in Niger,"
Agricultural Economics of Agricultural Economists,
International Association of Agricultural Economists, vol. 1(3), pages -, October.
- Adesina, Akinwumi A. & Brorsen, B. Wade, 1987. "A risk responsive acreage response function for millet in Niger," Agricultural Economics, Blackwell, vol. 1(3), pages 229-239, October.
- Llewelyn, Richard V. & Williams, Jeffery R., 1996.
"Nonparametric analysis of technical, pure technical, and scale efficiencies for food crop production in East Java, Indonesia,"
Blackwell, vol. 15(2), pages 113-126, November.
- Llewelyn, Richard V. & Williams, Jeffery R., 1996. "Nonparametric analysis of technical, pure technical, and scale efficiencies for food crop production in East Java, Indonesia," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 15(2), pages -, November.
- Stockil, R.C. & Ortmann, Gerald F., 1997. "Perceptions Of Risk Among Commercial Farmers In Kwazulu-Natal In A Changing Economic Environment," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 36(2), pages -, June.
- Mahlanza, B. & Mendes, E. & Vink, Nick, 2003. "Comparative advantage of organic wheat production in the Western Cape," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 42(2), pages -, June.
When requesting a correction, please mention this item's handle: RePEc:ags:ijameu:149748. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.