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Abstract
This study analyses the importance and dimensions of risk sources and computer adoption
among farmers in a changing economic policy and trade environment. A survey was conducted
in 1996 among 112 commercial farmers in KwaZulu-Natal. The majority of respondents were in
favour of a liberalized trade environment and deregulated domestic product and input markets.
Respondents identified changes in the cost of farm inputs, government legislation (tax, labour,
and land redistribution), the Rand exchange rate, and product prices as the most important
sources of risk. Factor analysis of risk sources showed that various dimensions to risk exist,
including changes in government policy, enterprise gross income, credit access and cost changes.
Computers, a risk management tool, are more likely to be adopted by larger farm operators who
have higher levels of education and who use more information sources, whilst operators of
extensive production systems are less likely to adopt computers.