scholarly journals Risk perception and risk management strategies on New Zealand dairy farms according to ownership structure and geographic location

2005 ◽  
pp. 97-102
Author(s):  
R. Pinochet-Chateau ◽  
N.M. Shadbolt ◽  
C.W. Holmes ◽  
N. Lopez-Villalobos
Keyword(s):  
Risk Management ◽  
New Zealand ◽  
Risk Perception ◽  
Ownership Structure ◽  
Management Strategies ◽  
Geographic Location ◽  
Perception Of Risk ◽  
Dairy Farmers ◽  
Risk Management Strategies ◽  
Risk Sources

New Zealand has had many changes in the dairy industry during the last twenty years. As NZ dairy farming has particular characteristics (e.g. differing ownership structures, geographic areas) risk perception and management strategies may differ significantly between them. No studies have been undertaken regarding the differences in perception of risk and risk management strategies used by different gr oups of dairy farmer s. A survey of 1000 NZ dairy farmers was conducted in 2004 and further analysed to address this need. In the survey the dairy farmers were asked to assess their perception of risk sources and the importance they attached to risk management strategies. Using a 1 to 5 scale, mean scores of both risk sources and management strategies were compared (Z-test) by ownership structure and geographic location. The differences in the perception of risk between sharemilkers and owner-operators were mainly in the sources categorised as "market" and "human". "Changes in land prices" was highly important for sharemilkers. Differences of risk management strategies were noted in the "financial" and "production" categories. The main sources of risk perceived differently by farmers in the North and South Islands were in the production side of the business. Although farmer s from both islands were similarly focused on controlling risk through production management strategies, those from the South Island were keener to use financial responses. In conclusion, sharemilkers were more concerned with the changes of prices of both inputs and outputs than owner-operators. Sharemilkers were more production-orientated to manage risk than farm owners, and they also were more focused on off-farm income and debt management. Differences in both the risk perception and the risk management strategies used in each island are related to differences in farm sizes and the developmental stage of the dairy sector in each island. Keywords: risk perception, risk management strategies, sharemilkers

scholarly journals Perceptions of wheat producers towards risk and risk management strategies: A case study from Turkey

2019 ◽  
Vol 49 (12) ◽  
Author(s):  
Seyit Hayran
Keyword(s):  
Risk Management ◽  
Management Strategies ◽  
Policy Instruments ◽  
Data Set ◽  
Wheat Market ◽  
Risk Management Strategies ◽  
Risk Sources ◽  
The Government ◽  
The Impact

ABSTRACT: In this study, risk perception of wheat producers in Turkey was examined based on a case study conducted in Bitlis Province. The data set used in the study was obtained from 157 farmers randomly. Factor analysis was employed to classify risk sources and management strategies, and then multiple regression was used to investigate the relationship between farmers perceptions and some characteristic. Results of this study have shown that economic-based risks were perceived more strongly by farmers. Farmers’ also used more than one risk management strategy to minimize the impact of the risks they face. So, in order to ensure social and economic sustainability and predictability in wheat production and wheat market, the government should be considered preventive policy instruments and interventions to prevent fluctuations in input and output prices.

Risk Perception and Risk Management Strategies of Oyster Farmers

2013 ◽  
Vol 28 (3) ◽  
pp. 285-304 ◽  
Author(s):  
Véronique Le Bihan ◽  
Sophie Pardo ◽  
Patrice Guillotreau
Keyword(s):  
Risk Management ◽  
Risk Perception ◽  
Management Strategies ◽  
Risk Management Strategies

scholarly journals Risk Management Strategies to Cope Catastrophic Risks in Agriculture: The Case of Contract Farming, Diversification and Precautionary Savings

Agriculture ◽  
2020 ◽  
Vol 10 (8) ◽  
pp. 351
Author(s):  
K M Mehedi Adnan ◽  
Liu Ying ◽  
Zeraibi Ayoub ◽  
Swati Anindita Sarker ◽  
Rashid Menhas ◽  
...  
Keyword(s):  
Risk Management ◽  
Management Strategies ◽  
Probit Model ◽  
Management Tool ◽  
Precautionary Savings ◽  
Contract Farming ◽  
Research Results ◽  
Risk Management Strategies ◽  
Risk Sources ◽  
Catastrophic Risks

Risk management is an essential way for farmers to reduce uncertainty. In this research, a stratified random sampling method was used to survey 350 maize farmers in four different agro-ecological regions in Bangladesh. Using the multivariate probit model, this study explored the possible correlation between farmers’ perceptions of catastrophic risks and their attitudes towards risk sources—as well as the possible correlation between contract farming, diversification and precautionary savings as risk management strategies. The results confirm the relevance of risk management adoption decisions and reveal that the use of one risk management tool may simultaneously influence the use of another risk management tool. In addition, the research results also show that age, education level, extension experience, monthly household income, farming areas, land ownership and risk aversion nature are the most important factors that affect the adoption of risk management strategies. The research results provide further explanation and information and provide a platform for decision-makers to predict appropriate risk management strategies.

scholarly journals An Evaluation of Risk Management Strategies for Dairy Farms

1992 ◽  
Vol 24 (2) ◽  
pp. 173-182 ◽  
Author(s):  
Darrell J. Bosch ◽  
Christian J. Johnson
Keyword(s):  
Risk Management ◽  
Risk Aversion ◽  
Crop Yields ◽  
Crop Insurance ◽  
Management Strategies ◽  
Dairy Farm ◽  
Dairy Farmers ◽  
Net Returns ◽  
Base Scenario ◽  
Risk Management Strategies

AbstractVariability in feed prices and crop yields are important sources of risk to dairy farmers. A simulation model of a representative dairy farm was used to evaluate crop insurance and hedging as risk management strategies. These strategies lowered expected net returns but also reduced risk. The preferred set of strategies at lower levels of risk aversion included hedging and crop insurance, although a base scenario in which no risk management strategies were employed was also efficient. The preferred strategy at higher levels of risk aversion was a combination of crop insurance and hedging.

scholarly journals Risk and risk management strategies of smallholder onion farmers in Sokoto state, Nigeria

2018 ◽  
Vol 111 (3) ◽  
pp. 559
Author(s):  
Oyeyode Tohib OBALOLA ◽  
Opeyemi Eyitayo AYINDE
Keyword(s):  
Risk Management ◽  
Absolute Risk ◽  
Management Strategies ◽  
Analytical Techniques ◽  
Primary Data ◽  
Risk Averse ◽  
Education Experience ◽  
Risk Management Strategies ◽  
Risk Sources ◽  
Structured Questionnaire

The study examines risk and its management strategies among smallholder onion farmers in Sokoto State. Data were collected with the use of structured questionnaire designed to pull together information on the socioeconomic characteristics of the farmers in the area such as age, level of education, experience, family size, membership of farmer association, extension contact, risk preference of the farmers etc. Data was also collected on risk sources and risk management strategies.  The primary data used were obtained from structured questionnaire administered to 120 randomly selected farmers. The analytical techniques that were used in the analysis of data were descriptive statistical tools such as means and percentages, Equally Likely Certainty Equivalent with a Purely Hypothetical Risky prospect (ELCEPH) technique and the 5-point Likert scale. The result showed that majority of the farmers are risk averse having a positive Arrow-Pratt absolute risk aversion coefficient.

scholarly journals Analysis of Price Risk Management Strategies in Dairy Farming Using Whole-Farm Simulations

2013 ◽  
Vol 45 (2) ◽  
pp. 313-327 ◽  
Author(s):  
James Neyhard ◽  
Loren Tauer ◽  
Brent Gloy
Keyword(s):  
Risk Management ◽  
Management Strategies ◽  
Farm Income ◽  
Reference Scenario ◽  
Net Income ◽  
Dairy Farmers ◽  
Risk Management Strategies ◽  
Marketing Procedure ◽  
Cash Basis ◽  
Price Risk Management

Combinations of futures and options contracts on milk and feed were simulated to determine their influence on a representative dairy farm's ability to meet cash flow requirements and reduce the variance of net income. Compared with the reference scenario of selling milk and procuring inputs on a monthly cash basis, the risk management activities did not result in a significant change in either the level or variance of net farm income. The results suggest that on average the current marketing procedure of monthly cash milk pricing and monthly feed purchases (and pricing) produces a strong built-in natural hedge for dairy farmers.

scholarly journals Perception and risk management strategies for ranchers and their determinants: a case study from Turkey

2021 ◽  
Vol 51 (6) ◽  
Author(s):  
Seyit Hayran ◽  
Murak Külekçi ◽  
Aykut Gül
Keyword(s):  
Risk Management ◽  
Management Strategies ◽  
Farm Income ◽  
Least Squares Regression ◽  
Data Set ◽  
Income Uncertainty ◽  
Perceptions Of Risk ◽  
Risk Management Strategies ◽  
Risk Sources ◽  
The Government

ABSTRACT: In this study, beef cattle farmers’ perceptions of risk and risk management strategies, and their determinants were analyzed using factor analysis and partial least squares regression analysis. The data set used in this study came from a survey conducted in Erzurum Province. The results demonstrated that variability in fodder price, insufficient farm income, uncertainty in government policies were perceived as the most important risks. Clean cattle shelter, off-farm income, monitoring and preventing livestock diseases were perceived as the most important risk management strategies. Results, also, demonstrated that some characteristics of farmers affected farmers’ perceptions. In this study, it was identified that the most important risk sources were economics-based. So, it was recommended that the government policy should be focused on preventing the fluctuations in input/output prices.

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