This study investigated the response of the agricultural sector to climate change and the vulnerability of municipalities. The study found that higher temperatures and lower rainfall adversely affected net farming revenue. The effects were more severe among crop farmers, while mixed farmers were the least affected. The study identified 20 municipalities that are vulnerable to climate change. Policy options for improving the resilience of rural economies to climate change include providing for
ecological infrastructure in the Municipal Infrastructure Grant (MIG), expanding rural agricultural
extension and support services for small-scale farmers (to assist them to take up climate-resilient
farming strategies), subsidising climate change resilient inputs (such as drought-resistant seeds).
Policy brief by the Financial and Fiscal Commission