Agricultural commercialization: Risk perceptions, risk management and the role of pesticides in Thailand

Abstract

The transformation of agriculture in lower income countries from subsistence-to market-oriented production systems has important implications for farmers' risk exposure and risk management yet only few studies have paid attention to this. This paper fills this gap and particularly focuses on the role of pesticides in managing the risk from crop pests and diseases, which is major source of risk to farmers. Data were collected for 240 Thai upland farmers stratified by ten levels of agricultural commercialization. The results show that risk perceptions and management strategies are strongly associated with levels of agricultural commercialization. Key strategies for commercial farmers included monitoring market prices, diversifying sales channels and applying large quantities of pesticides, while crop diversification and debt avoidance were more important for subsistence-oriented farmers. High levels of pesticide use at commercial farms were not accompanied by a safer handling practices, as farmers largely neglected pesticide health risks. The results point at the importance of tailored agricultural policies to strengthen farmers' resilience against risk at varying levels of commercialization, rather than following a one size fits all approach.