Farmers' perception on combined climatic and market risks and their adaptive behaviors: a case in Shandong Province of China

Abstract

This paper used original survey data in Shandong province of China to depict local farmers’ perceptions of combined climatic and market risks, and their adaptive behaviors. Two Logit models were developed to capture the empirical relationship between farmers’ risk perception of the combined risks and adaptive behaviors. Results show that farmer’s risk perception of climate change and market significantly affected their adoption behavior of adaptive measures, including perception of rainfall decrease, gale decrease, drought increase, and price fall of agricultural products. Moreover farmers’ adaptive behaviors are more sensitive to their perceptions of extreme climatic events. Addition of demographic factors can improve the explanatory capacity of the Logit model. As illustrated by the models, male and better educated farmers have greater willingness to take actions for averting risks, while household heads with bigger farm are more reluctant. A majority of respondents chose to construct farm structure for irrigation and water conservation to avert climatic risks. Insurance, which is regarded as an effective tool to help farmers mitigate risks and avoid losses, has not been sufficiently accepted by farmers in rural areas in Shandong province. This underscores the need of effective communication of knowledge to enhance farmers’ coping capacity and to encourage their active response to risk.