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Dimensions of Risk and Managerial Responses to Risk on Commercial Farms in Kwazulu-Natal, South Africa

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  • Ortmann, Gerald
  • Woodburn, Michael
  • Levin, Jonathan

Abstract

A study conducted among 199 commercial farmers in the province of KwaZulu-Natal, South Africa, suggests that more dimensions of risk sources and managerial responses to risk may exist than are commonly included in risk management analyses. Factor analyses suggest that six factors describe risk sources and managerial responses to risk. In addition to financial and cost dimensions, variability of crop gross income and livestock gross income are viewed as separate sources of risk as are changes in government policies and changes in government regulation. The results support the classification of management responses to risk into the production, marketing and financial categories, but also include the categories of insurance, cost reduction and assurance.

Suggested Citation

  • Ortmann, Gerald & Woodburn, Michael & Levin, Jonathan, 1995. "Dimensions of Risk and Managerial Responses to Risk on Commercial Farms in Kwazulu-Natal, South Africa," 10th Congress, The University of Reading, UK, July 10-15, 1995 346316, International Farm Management Association.
    • Handle: RePEc:ags:ifma95:346316
    DOI: 10.22004/ag.econ.346316
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    References listed on IDEAS

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    2. Ortmann, G. F. & Patrick, G. F. & Musser, W. N. & Doster, D. H., 1992. "Sources And Management Of Risk: Evidence From Leading Cornbelt Farmers In The Usa," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 31(4), December.
    3. Gerald F. Ortmann & George F. Patrick & Wesley N. Musser & D. Howard Doster, 1993. "Use of private consultants and other sources of information by large cornbelt farmers," Agribusiness, John Wiley & Sons, Ltd., vol. 9(4), pages 391-402.
    4. Patrick, George F. & Wilson, Paul N. & Barry, Peter J. & Boggess, William G. & Young, Douglas L., 1985. "Risk Perceptions And Management Responses: Producer-Generated Hypotheses For Risk Modeling," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 17(2), pages 1-8, December.
    5. Lyne, M. C. & Ortmann, G. F., 1992. "Suggestions For Agricultural Economics Research In South Africa," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 31(4), December.
    6. Eidman, Vernon T., 1990. "Quantifying And Managing Risk In Agriculture," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 29(1), February.
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    Keywords

    Risk and Uncertainty;

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