Regional output/input price differentials and variations were calculated to evaluate price risk in South Africa. It was found that price unstable regions are not necessarily also risky regions as regions with higher output/input price ratios can handle higher price variations better. The average value of the price index for the top ten regions is over 3 times larger than the average for the ten lowest regions. The higher the prices of inputs relative to output prices (the lower the price ratio), the smaller their application to each hectare of land, and the lower the land productivity. The regional prices appears to be a function of the interaction between differential natural and economic factors in different regions.