Free trade and deregulated domestic markets: Attitudes of commercial farmers in KwaZulu-Natal

Abstract

This study analyses farmers' attitudes towards free trade and deregulated domestic product and input markets using a survey conducted in 1996 among 112 commercial farmers in KwaZulu-Natal. Most respondents were in favour of liberalised trade and deregulated domestic markets, but expected a decline in product prices, farm profits and land values. Logit analyses of farmers' personal and business characteristics that influence their attitudes towards free trade and deregulated domestic markets were conducted. Results indicate that improved information on risk management practices and import tariff levels may help commercial farmers to adapt to a changing economic environment and reduce resistance to free trade.