Farmers' Perceptions about Risk and Risk Management Strategies

Institutions and socioeconomic characteristics influence farmers'risk perceptions: the case of smallholder farmers in Lume district, Ethiopia
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The main objectives of this study were to investigate farmers' perceptions about the relative importance of various types,sources of risks and risk management strategies (RMS) and factors that influence their perceptions. Farmers perceived production and institutional risks as important types of risks. Rainfall fluctuation, drought, soil fertility decline and weeds were perceived as important sources of production risks. On the other hand, land scarcity, higher prices of improved seeds, breeds, feeds and fertilizers, lower prices of crops at sale were perceived as important sources of institutional and market risks. The farmers perceived agricultural extension services, diversification of crops and income sources, use of improved technologies, future and contract marketing and crop insurance as important RMS. Hence, this research is expected to contribute to the efforts of GOs, NGOs, farmers and academia in their efforts in the designing and adoption of appropriate RMS in agriculture. Moreover, the findings of the study will serve as a baseline for further research on smallholder farmers' perceptions of risk RMS in the study area.

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