scholarly journals Income Risk, Coping Strategies, and Safety Nets

2002 ◽  
Vol 17 (2) ◽  
pp. 141-166 ◽  
Author(s):  
S. Dercon
Agronomy ◽  
2021 ◽  
Vol 11 (5) ◽  
pp. 973
Author(s):  
Shoaib Akhtar ◽  
Azhar Abbas ◽  
Hazem S. Kassem ◽  
Salim Bagadeem ◽  
Raza Ullah ◽  
...  

This paper is aimed at evaluating the factors affecting the concurrent adoption of two risk coping strategies among hybrid maize farmers, namely income diversification supplemented with off-farm work and contract farming in the wake of changing climatic conditions. Climatic changes and food insecurity at the national level have emerged as key risk elements for hybrid maize production due to varying economic conditions. The present paper addresses these risks by examining various sources of risks faced by hybrid maize farmers and develops ideas to tackle these risks. Bivariate and multinomial probit models were employed to analyze numerous factors that influence farmers’ choice of the simultaneous adoption of income diversification (both on and off the farm) and contract farming at the farm level. The results reveal that hybrid maize farmers’ socioeconomic attributes significantly affect their adoption of risk coping tools. Similarly, the climatic, economic (price-related), biological, and financial risk perceptions and risk preference significantly influence the utilization of risk coping strategies in maize production. These outcomes extend our understanding of farmers’ risk preferences and provide parameters for policymakers to forestall diverse risk sources associated with hybrid maize production.


Risk Analysis ◽  
2020 ◽  
Author(s):  
Yanwei Li ◽  
Araz Taeihagh ◽  
Martin Jong ◽  
Andreas Klinke

Climate ◽  
2019 ◽  
Vol 7 (1) ◽  
pp. 7
Author(s):  
Dadang Jainal Mutaqin

The impact of natural hazards on agriculture in Indonesia is becoming increasingly severe. Therefore, improving farmers’ capacity to undertake risk coping strategies is essential to maintaining their prosperity. The objective of this study was to investigate the determinants of farmers’ decisions on ex ante and ex post coping strategies in rural West Java, Indonesia. The study was based on a field survey of 180 farmers conducted in the Garut district from July to October 2017. The study used the protection motivation theory framework and applied three econometric models: binomial logit model, zero truncated Poisson regression model, and multinomial logit model. Most farmers (74.4%) adopted ex ante coping strategies. They were characterized as having higher risk aversion per capita expenditure and disaster experience, but lower discount rates and percentage of damage and locations in downstream and midstream areas. Coping appraisal perceptions were found to be important factors in the risk coping analysis. Four determinants of the decision on the number of ex ante coping strategies adopted were: per capita expenditure, land size, disaster experience, and access to financial institutions. The most common ex post coping strategy adopted by farmers was the middle-stress type.


2020 ◽  
Vol 1 (1) ◽  
pp. 1-19
Author(s):  
Dadang Jainal Mutaqin ◽  
Koichi Usami

The Indonesian government have implemented agricultural production cost insurance since 2015 called Asuransi Usaha Tani Padi (AUTP). It is an issue that the rate of farmer participation in the insurance is still low. As a challenge to increase participation, it becomes important to be aware of motivation, behavior, and perception that influence the practical risk management of farmers. This study investigated the relationship between cropping pattern diversification (as risk management) and factors such as motivation, behavior, and perception. Based on a field survey of 240 smallholder farmers in Garut District, West Java Province, these were the characteristics of farmers who practiced cropping pattern diversification: (1) high-risk perception (impact and probability); (2) risk-averse; and (3) economic motivation. The study revealed that approximately one-third of farmers had risk-neutral and low-risk perceptions of whom approximately 70.7 percent practiced single cropping patterns. They may not adopt any risk- coping strategies unless they are aware of the risks that they face. Improving awareness about the negative impacts of risks on income from farming might encourage them to adopt risk-coping strategies for both on-farm risk coping (such as cropping pattern diversification) and off-farm risk-coping (such as agricultural insurance).


2017 ◽  
pp. 1-12
Author(s):  
Riski Lestariadi ◽  
Masahiro Yamao

Small-scale shrimp farmers have contributed significantly in increasing shrimp production in Indonesia. However, they face various risks that resulted to high fluctuation in their income. Risk management strategies in shrimp farming are needed to cope with inherent risks in order to enhance sustainability of shrimp farming. This study analyzed the sources of risks, ex-ante risk management and ex-post risk coping strategies in small-scale shrimp farms in Indonesia. A field survey of 166 shrimp farmers was conducted in the North and South coastal zones of East Java. Results revealed that the top three sources of risks that influenced in shrimp farming were shrimp price volatility, high mortality due to diseases, and increasing formulated feed price. Requesting for government technical assistance was the common formal on farm risk management strategy used by the shrimp farmers. Sharecropping was the main ex-ante strategy to mitigate risk. Small-scale shrimp farmers tended to avail of informal loans that resulted to loss of savings. They also used family labor as informal ex-post strategy to reduce expenses. They used social assistance from the government as formal ex-post risk coping strategies.


2021 ◽  
Vol 2 (2) ◽  
pp. 153-162
Author(s):  
O. Ariyo ◽  
F. O. Samuel ◽  
T. E. Eyinla ◽  
O. O. Leshi ◽  
B. I. C. Brai ◽  
...  

As part of the measures to contain the spread of the COVID-19 virus in Nigeria during the early stages of the pandemic, a lockdown of movements within and from outside the country was declared by the federal government. This article presents findings on food-related coping strategies adopted during the COVID-19 lockdown in Nigeria. A cross sectional survey using an online based questionnaire received responses from 883 households regarding information on food consumption, health seeking behaviour and food coping strategies during the COVID-19 lockdown. Food Coping Strategy Index (FCSI) was computed from the data received based on standard methods. Analysis and presentation of data was done using descriptive and inferential statistics. The key findings show that daily mealtimes generally reduced from an average of 3 to 2 times. The storage capacity of households showed an average of 2-week food stock of staples, and most of the respondents had started reducing either their usual portion sizes or frequency of meals in order to cope with food shortages. As regards health seeking behavior, older respondents were more likely to take prophylactic medication (p<0.004) and there was a higher preference for fruits and Vitamin C as prophylactic items. A negative correlation between FCSI with mealtime during COVID-19 lockdown (p<0.000) and monthly income (p<0.000) was observed. The findings presented provide information for policy intervention in the areas of social safety nets and palliatives disbursement in the event of similar lockdown restrictions in the future.


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