DIVERSIFICATION AS A RISK STRATEGY IN TIMES OF CHANGE: A STUDY IN THE EASTERN ORANGE FREE STATE

Data from 100 commercial farmers in the Aberfeldy pedosystem (situated in the North-eastern Orange Free Sate) were used to analyse diversification as a risk alleviating strategy. In theory, diversification reduces risk, but when the ability with respect to management or entrepreneurship is ignored, diversification may increase risk. Results show that any excessive attitude towards risk is undesirable. Both risk averters and risk seekers showed a greater probability of finacial deterioration or failure. Risk neutrality seems to be the optimal strategy.


Issue Date:
1993-12
Publication Type:
Journal Article
Record Identifier:
http://ageconsearch.umn.edu/record/267597
ISSN:
0303-1853
Language:
English
Published in:
Agrekon, Volume 32, Issue 4
Page range:
182-186




 Record created 2018-02-01, last modified 2018-04-02

Fulltext:
Download fulltext
PDF

Rate this document:

Rate this document:
1
2
3
 
(Not yet reviewed)