RISK PERCEPTION AMONG FARM HOUSEHOLDS IN NORTH CENTRAL REGION OF NIGERIA: A LOWER PARTIAL MOMENT APPROACH

Abstract

This study investigated the perception of production and price risk by farm households and the factors that influence their level of perception in North Central Nigeria. The study attempted to capture the opinion of farmers about the quantity of crops they expect to harvest at the end of the season, and the prices they also expect for each of the crop cultivated. It was confirmed that the households do have an opinion for the quantity of crops outputs cultivated and also for the price they expect at the end of every season. The study established that farm households do give negative allowances regarding the quantity expected of a crop for a particular land cultivated, this is also true for prices expected. In other words farm households were found to be aware of the possibility that the final output they get from their farming activity may not commensurate with the inputs invested and so therefore expect less than what should be the potential. Furthermore, it was discovered that household crop specific risk percep- tion varies within the region. Majority of the farm households perceived higher price risks for sorghum, rice, and yam crops.