Agriculture Reference
In-Depth Information
Extreme to severe risk
aversion
Intermediate to
moderate risk aversion
Risk-neutral to risk
preferring
Number of
responses
Studies
India [31]
50 rupee
8.4
82.2
9.4
107
500 rupee
16.5
82.6
0.9
115
Philippines [41]
50peso
10.2
73.5
16.3
49
500peso
8.1
77.6
14.3
49
Zambia [40]
1000kw
29.1
46.4
24.5
423
10000kw
36.7
52.5
11
137
Ethiopia [39]
5bir
45.4
33.6
21
262
15bir
55.7
27.5
16.8
262
Côte d'Ivoire [38]
1000FCFA
32.8
53.9
13.3
362
5000FCFA
46.1
45.9
8
362
*South Africa [42]
400Rands
16.5
70
11.5
196
*Source: Field work
Table 4.
Percentage distribution of revealed risk preferences in five experimental studies
South Africa and especially in the former homelands still lacked this vital documentation.
Tractor unavailability can be attributed to the fact that there is one tractor that has been
allocated to the members of Ezemvelo Farmers Organisation. The tractor is leased out at a
rental fees. This poses a challenge during the land preparation phase when the demand for its
services is at peak.
Similarly, partially-certified farmers also ranked tractor not being available when needed
(mean 2. 89) and uncertain climate (mean 2. 83) as identified sources of risk (Table 5). The risk
of delays in payment for products sent to pack house (mean 2. 89) are attributed to various
factors, among them the contractual obligation the agent has with the retailer which has a
bearing on the duration of payment. Payment is only made to the farmer once the supply has
been forwarded to the retailer and there is confirmation of the quantity of produce that has
been rejected. The process flow delays payments to farmers. Non-organic farmers also cited
uncertain climate (mean 2. 82), livestock damage to crops (mean 2. 80) and lack of cash and
credit to finance farm inputs (mean 2. 78). The livestock damage is a result of lack of fencing
around the crops planted.
