Farmer Characteristics, Risk Sources And Managerial Responses To Risk In Vegetable Farming: Evidence From Large- And Small-Scale Commercial Vegetable Farmers In Kwazulu-Natal

Vegetable farmers in KwaZulu-Natal were surveyed on their sources and managerial responses to risk. Most respondents considered themselves more willing to take nsks relative to other farmers. Respondents viewed price, climate and yield variability as the most important sources of risk in vegetable production. Results show that government policies add to the level of uncertainty faced-by vegetable farmers. However, large and small vegetable farmers differed in their perceptions of risk. Small farmers perceived changes in credit availability and changes in Input costs to be more important risk sources than large farmers, while the latter were more concerned with changing interest rates. Irrigation, timely access to machinery, being a low cost producer, and diversification were considered by both .large and small farmers as the most significant managerial responses to risk. Factor analysis of risk sources and managerial responses to risk suggest there are more dimensions to risk than are commonly included in economic analyses.