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PR - Changing Perceptions Of The Risk Environment Faced By Commercial Sugarcane Farmers In Kwazulu-Natal, South Africa

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Listed:
  • Nicol, R. Mac
  • Ortmann, G.F.
  • Ferrer, S.R.D.

Abstract

This study identifies sources of risk that commercial sugarcane farmers in the province of KwaZulu-Natal (KZN), South Africa, presently perceive to pose the greatest threat to the viability of their businesses. Data obtained in 2006 via structured personal interviews of 76 large-scale sugarcane farmers from a stratified random sample of 110 farmers in two separate mill-supply areas of KZN were used to elicit farmers’ perceptions of various sources of risk. The most important risk sources were found to be the threats posed by land reform, minimum wage legislation and the variability of the sugar price, in that order. Land reform and minimum wage legislation did not feature prominently in past studies of KZN farmers during the 1990s. Factor analysis identified additional risk dimensions that exist within the remaining risk sources. Recommendations include that government improve accessibility to information regarding future plans for land and labour policies, and that farmers become more proactive in terms of obtaining information to reduce uncertainty and resultant efficiency barriers.

Suggested Citation

  • Nicol, R. Mac & Ortmann, G.F. & Ferrer, S.R.D., 2007. "PR - Changing Perceptions Of The Risk Environment Faced By Commercial Sugarcane Farmers In Kwazulu-Natal, South Africa," 16th Congress, Cork, Ireland, July 15-20, 2007 345401, International Farm Management Association.
    • Handle: RePEc:ags:ifma07:345401
    DOI: 10.22004/ag.econ.345401
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    References listed on IDEAS

    as
    1. Bullock, W. I. & Ortmann, G. F. & Levin, J. B., 1994. "Farmer Characteristics, Risk Sources And Managerial Responses To Risk In Vegetable Farming: Evidence From Large- And Small-Scale Commercial Vegetable Farmers In Kwazulu-Natal," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 33(3), September.
    2. 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 1-21, June.
    3. Ortmann, Gerald F., 2005. "Promoting the competitiveness of South African agriculture in a dynamic economic and political environment," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 44(3), pages 1-35, September.
    4. Barry, Peter J. & Stanton, Bernard F., 2003. "Major Ideas In The History Of Agricultural Finance And Farm Management," Working Papers 14750, Cornell University, Department of Applied Economics and Management.
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