Identifying risk in production agriculture: an application of best-worst scaling
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The identification and management of risk plays a significant role in reducing variability in farm income. The choice of risk management tools and strategies may depend on several factors, including the perceived importance of the risk and the perceived level of control that producers have in managing the risk. This study uses data from a 2017 survey of grain and oilseed farmers in Saskatchewan and employs a count-based approach of best-worst scaling and latent class cluster analysis to examine their perception of the most important sources of risk and the factors that influence these perceptions. The results suggest production and marketing risks, such as variation in output prices, rainfall variability, and changes in input prices, are the most important risks to farmers. However, results also reveal heterogeneity in responses to these identified risks, suggesting that a multifaceted approach is needed by farmers to address risk.
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Identifying risk in production agriculture: an application of best-worst scaling
In: International Food and Agribusiness Management ReviewSearch for other papers by Cosmos Atta in
Current site
Google Scholar
PubMed
Search for other papers by Eric T. Micheels in
Current site
Google Scholar
PubMed
The identification and management of risk plays a significant role in reducing variability in farm income. The choice of risk management tools and strategies may depend on several factors, including the perceived importance of the risk and the perceived level of control that producers have in managing the risk. This study uses data from a 2017 survey of grain and oilseed farmers in Saskatchewan and employs a count-based approach of best-worst scaling and latent class cluster analysis to examine their perception of the most important sources of risk and the factors that influence these perceptions. The results suggest production and marketing risks, such as variation in output prices, rainfall variability, and changes in input prices, are the most important risks to farmers. However, results also reveal heterogeneity in responses to these identified risks, suggesting that a multifaceted approach is needed by farmers to address risk.
| All Time | Past 365 days | Past 30 Days | |
|---|---|---|---|
| Abstract Views | 0 | 0 | 0 |
| Full Text Views | 252 | 182 | 16 |
| PDF Views & Downloads | 247 | 160 | 8 |
