Adoption Of Risk Management Strategies Research Articles

Impacts of credit constraints on adoption of risk management strategies and income of maize farmers in Northern Nigeria

PurposeA correlation has been shown in the literature between credit constraints and the adoption of agricultural technologies, technical efficiencies and measures for adapting to climate change. The relationship between credit constraints, risk management strategy adoption and income, however, is not well understood. Consequently, the purpose of this study was to investigate how credit constraints affect the income and risk management practices adopted by Northern Nigerian maize farmers.Design/methodology/approachCross-sectional data were collected from 300 maize farmers in Northern Nigeria using a multi-stage sampling technique. Descriptive statistics, seemingly unrelated regression and double hurdle regression models were the analysis methods.FindingsThe results showed that friends and relatives, banks, “Adashe”, cooperatives and farmer groups were the main sources of credit in the study area. The findings also revealed that the sources of risk in the study area included production risk, economic risk, financial risk, institutional risk, technological risk and human risk. In addition, the risk management strategies used to mitigate observed risks were fertilizer application, insecticides, planting of disease-resistant varieties, use of herbicides, practising mixed cropping, modern planning, use of management tools as well as making bunds and channels. Furthermore, we found that interest rate, farm size, level of education, gender and marital status were significant determinants of statuses of credit constraints while the age of the farmer, gender, household size, primary occupation, access to extension services and income from maize production affected the choice and intensity of adoption of risk management strategies among the farmers.Research limitations/implicationsThe study concluded that credit constrained status condition of farmers negatively affected the adoption of some risk management strategies and maize farmers’ income.Practical implicationsThe study concluded that credit constrained status condition of farmers negatively affected the adoption of some risk management strategies and maize farmers’ income. It therefore recommends that financial service providers should be engaged to design financial products that are tailored to the needs of smallholder farmers in the study area.Originality/valueThis paper incorporates the role of constraints in influencing farmers’ decisions to uptake credits and subsequently their adoption behaviours on risk management strategies. The researcher approached the topic with a state-of-the-art method which allows for obtaining more reliable results and hence more specific contributions to research and practice.

Risk sources in agriculture and farmers’ behavior in risky prospects: a systematic review

PurposeThe agricultural sector is a critical component of global economic development, and its significance has grown significantly in recent years. The risks associated with agriculture and the behaviors of farmers in handling these risks are becoming increasingly important, given the sector’s increasing dependence worldwide. Various activities related to agriculture are vulnerable to multiple risks, which can have severe consequences for farmers’ livelihoods. The purpose of this systematic review is to present a comprehensive analysis of the sources of risk faced by farmers and their choices in adopting risk management strategies worldwide.Design/methodology/approachThe Preferred Reporting Items for Systematic reviews and Meta-Analyses protocol was utilized to select relevant literature, and a total of 102 studies were analyzed. Through the use of Venn diagrams and graphical methods, the authors provide a transparent overview of the risks faced by farmers and the adoption of risk management strategies in developed and developing countries.FindingsFrom the analysis, the authors found that, in terms of risk management strategies, diversification, reserve credit and accumulated assets are frequently used in developing countries, while developed countries tend to rely on future/forward contracts, crop insurance and hedging. Diversification is the most widely used risk management strategy across both developed and developing countries. Our study also highlights the different perceptions of weather-related risks among growers in developed and developing countries.Practical implicationsThis systematic review provides valuable insights into the risks associated with agriculture and farmers' strategies in managing these risks, which could inform policy decisions and promote sustainable agricultural practices. For instance, understanding the individualistic nature of farmers' risk perception and the varying risk sources and management strategies depending on the locality and provide assistance to the farmers accordingly.Originality/valueThe paper explains how farmers behave during uncertainty in terms of risk perception and their decision to adopt risk management strategies in developed and developing countries.

Farmers\u2019 Demand for Informal Risk Management Strategy and Weather Index Insurance: Evidence from China

In the absence of formal risk management strategies, agricultural production in China is highly vulnerable to climate change. In this study, field experiments were conducted with 344 households in Heilongjiang (Northeast China) and Jiangsu (East China) Provinces. Probit and logistic models and independent sample T-test were used to explore farmers’ demand for weather index insurance, in contrast to informal risk management strategies, and the main factors that affect demand. The results show that the farmers prefer weather index insurance to informal risk management strategies, and farmers’ characteristics have significant impacts on their adoption of risk management strategies. The variables non-agricultural labor ratio, farmers’ risk perception, education, and agricultural insurance purchase experience significantly affect farmers’ weather index insurance demand. The regression results show that the farmers’ weather index insurance demand and the influencing factors in the two provinces are different. Farmers in Heilongjiang Province have a higher participation rate than those in Jiangsu Province. The government should conduct more weather index insurance pilot programs to help farmers understand the mechanism, and insurance companies should provide more types of weather index insurance to meet farmers’ diversified needs.

Economic Sustainability and Multiple Risk Management Strategies: Examining Interlinked Decisions of Small American Farms

Economic viability of small farms and farming businesses depends on multiple factors. These farms have limited production and financial resources to maintain their operation. Therefore, to sustain farming, adopting appropriate risk management strategies is a pivotal decision for small farmers. We surveyed Tennessee’s small farms and utilized multivariate probit models to study factors influencing the adoption of various risk management strategies. Our findings suggest that the decisions related to the adoption of risk management strategies are significantly interlinked. Along with factors representing the operator’s age, education, and farm operator’s income and land holdings, we also found that the government incentives (payments), smartphones, and farmers’ continuation plan significantly influence the strategic decisions of adopting risk management strategies.

Mitigating Catastrophic Risks and Food Security Threats: Effects of Land Ownership in Southern Punjab, Pakistan.

In the wake of environmental challenges, the adoption of risk management strategies is imperative to achieve sustainable agricultural production and food security among the Pakistani farmers of Punjab. For a deeper insight into farmers’ adaptive behavior towards climate change, this study explored the role of land tenancy in the adoption of risk management instruments, such as off-farm diversification, improved varieties, and crop insurance. Off-farm diversification was found to be a preferred instrument among landless tenants. The study also employed a multivariate probit model that further signified the role of land tenure in risk-related decisions. Apart from land tenancy, the results identified the prominence of risk perception, information access, and extension access in adoption decisions. This study also investigated the association between risk management approaches and food security indicators (household hunger scale, food consumption score). Analysis revealed a significant association between risk management tools and food security indicators.

Risk Management Strategies to Cope Catastrophic Risks in Agriculture: The Case of Contract Farming, Diversification and Precautionary Savings

Risk management is an essential way for farmers to reduce uncertainty. In this research, a stratified random sampling method was used to survey 350 maize farmers in four different agro-ecological regions in Bangladesh. Using the multivariate probit model, this study explored the possible correlation between farmers’ perceptions of catastrophic risks and their attitudes towards risk sources—as well as the possible correlation between contract farming, diversification and precautionary savings as risk management strategies. The results confirm the relevance of risk management adoption decisions and reveal that the use of one risk management tool may simultaneously influence the use of another risk management tool. In addition, the research results also show that age, education level, extension experience, monthly household income, farming areas, land ownership and risk aversion nature are the most important factors that affect the adoption of risk management strategies. The research results provide further explanation and information and provide a platform for decision-makers to predict appropriate risk management strategies.

Simultaneous adoption of risk management strategies to manage the catastrophic risk of maize farmers in Bangladesh

Risk and uncertainty are distinctive features of agricultural cultivation, which significantly affect the production and income. Risk management is an important way for farmers to reduce uncertainty. But little literature is available on simultaneous adoption of different risk management strategies and the possible correlations and impact. This study surveyed 350 maize farmers in four different agro-ecological districts in Bangladesh through stratified random sampling and explored the impacts of social and farm features, farmers’ perceptions about catastrophic risk and their attitude towards risk sources, and the possible correlations among contract farming, diversification and agricultural credit as for risk management strategies by employing multivariate probit model. The results confirmed the correlation among the adoptions of different risk management strategies and revealed that a single risk management strategy could encourage farmers to adopt another one or two risk management strategies simultaneously. Furthermore, the findings explored that age, educational status, extension contact, monthly family income, farm size, farmland ownership, and farmers’ risk-averse nature were the most influencing factors for risk management strategies adopted. Also, the findings from the multivariate probit model provided further interpretations and information which will help in a better understanding of farmer’s behavior about managing different catastrophic risks and will give a platform for policymakers to anticipate suitable risk management strategies for farmers.

Risk Perception and Management in Smallholder Vegetable Farming in Eastern Ethiopia

This study examines vegetable producing farmers’ risk perception and management strategies. Using survey data collected from 385 smallholder vegetable farmers from East Hararghe zone of Oromia region of Ethiopia, descriptive statistics and factor analysis were used for analyzing farmers risk attitude, classifying risk sources and management strategies. The analysis of risk attitude indicated that the majority of vegetable farmers considered themselves to be risk-takers towards important farm decisions which would help in the adoption of risk management strategies. The result of factor analysis identified low profitability, energy inaccessibility, production, price variability, human / social and institutional factors as principal sources of risk. Moreover, factor analysis also identified production management, loss minimizing and diversification as risk management strategies adopted by smallholder vegetable farmers. Policy makers should focus on enhancing the profitability of smallholder vegetable farmers, stabilizing input and output price, managing production risk, expanding energy access and facilitating the provision of necessary farm inputs. Moreover, it is also necessary to make the operation of cooperatives/unions accountable and their input provision fair and efficient. Keywords : Vegetable farming, factor analysis, risk perception, risk management, risk attitude. DOI: 10.7176/JNSR/10-4-01 Publication date: February 29 th 2020

Determinants of adoption of risk management strategies in electronic banking among agro-entrepreneurs in Ughelli North Local Government Area of Delta State, Nigeria

This study examined the determinants of adoption of risk management strategies in electronic banking (digital finance) among agro entrepreneurs in Ughelli North local Government area of delta state, Nigeria. Data were collected with the aid of structured questionnaire, administered on 79 respondents using two-stage sampling procedure. The data were analyzed with the use of descriptive statistics and regression analysis. This study showed that 34.0% of the respondents were male while 57.0% of the respondents were female, 39.2% of the respondents were in the age bracket of 41-50 years. The regression result shows that gender, age, marital status, level of education, farming status were all significant factors that influence risk management strategies in electronic banking. Household size, business experience, income and savings were not significant. Also, it was found that constraints faced by agro entrepreneur in adopting these risk management strategies includes the length of time it takes for unsuccessful funds transfer to be returned, the delayed response of banks to issues relating to electronic banking risks, ATM are not readily available and the ones that are, are usually congested resulting to agro entrepreneurs using the ATM at odd hours, amongst others. Proper awareness on these risk management strategies should be given to these rural entrepreneurs, and government should charge banks with the sole responsibility of providing a more secure and coordinated methods of carrying out these activities. Keywords: digital finance, electronic banking risks, ATM and cyber security

Farmers’ assessment of plant biosecurity risk management strategies and influencing factors: A study of smallholder farmers in Australia

Plant biosecurity threats such as pest, weeds and disease occurrences cause substantial economic damage to the agricultural sector, worldwide and in Australia. How smallholder farmers choose biosecurity management strategies remains poorly understood, particularly of smallholder cultural minority groups. In this study, we explore how Vietnamese smallholder farmers in Australia assess their biosecurity risk management strategies and the factors that explain their choice of different strategies. To do so, we conducted a survey of 101 Vietnamese farmers in the Northern Territory, South Australia and Western Australia. Based on the protection motivation theory, we assessed farmers’ perceived self-efficacy, response efficacy and response costs (all elements of their coping appraisal) using descriptive statistics, factor analysis and stepwise regression. Information sources related to biosecurity and farmers’ trust in public management explain how farmers assess their risk management strategies. Previous experience with biosecurity issues does not influence how farmers appraise their biosecurity risk coping capacity. Farmers use four types of biosecurity risk management strategies: chemical control, plant growth strategies, on-farm strategies and asset investment strategies. The first two are the most frequently used. We recommend tailoring relevant government policies to better support farmers’ adoption of risk management strategies based on their specific needs, more investment into biosecurity information dissemination and into trust building.

Determinants of adoption level of risk management strategies by fish farmers in Degema Local Government Area of Rivers State, Nigeria

The study examined the socio-economic determinants of level of adoption of risk management strategies by fish farmers in Degema Local Government Area of Rivers State. The study specifically described the socioeconomic characteristics of fish farmers, identified the various sources of risk and determined the socioeconomic factors that influence the level of adoption of risk management strategies. A two-stage sampling technique was used to select sixty-seven (67) fish farmers. Structured questionnaire and interview schedule were used for data collection. Data analysis was done using descriptive statistics and multiple regression. The result showed that majority were young male with an average age of 40 years. The most common sources of risk were the fluctuation in prices of fish feed and fish. The age of farmers, household size, and farming experience were some of the factors that influenced the adoption to risk management strategies. However due to the inadequate extension service activities, farmers were not able to fully utilize the different and essential risk management strategies. Hence, the study recommends that young women should be encouraged to invest in fish farming business. Also, extension agents should be encouraged to disseminate useful information to farmers on essential risk management strategies.Keywords: Risk, Risk Management Strategies, Fish farming, Adoption

Farmers’ risk preference and the adoption of risk management strategies in Northern Ghana

The study used the hypothetical lottery-choice questions to measure risk aversion and a detailed survey collected data on input use, farm production and non-farm activities to specifically assess whether risk aversion, risk perceptions, and socioeconomic factors affect the risk management strategies of farm households in Northern Ghana. Risk aversion significantly increases crop diversification strategies of households but marginally reduces herbicide use by households. Market risk significantly increases the use of improved seed varieties and the application of inorganic fertiliser but reduces diversification into livestock production. Production risk largely increases diversification into livestock production. Farmers’ risk management strategies are affected by socioeconomic variables such as access to extension services, area cultivated, age and gender. Policy effort focused on building pliable on-farm crop related risk management strategies should aim at considering the risk aversion and the perception of market risk whilst those focused on livestock should focus on production risk.

Strategies to Manage Risk and their Role in Impacting Economic Performance among Farm Households

Data from the 2015 ARMS and a multinomial probit regression model were used in an attempt to discern the impact of socio-economic factors on the likelihood of a farm household falling in a favorable income-wealth category delineated by above-median income and wealth levels. A primary determinant considered was the number of risk management strategies utilized by the farm household. Findings indicate that farmers who layer up the adoption of risk management strategies are most likely to secure an economic performance status characterized by ‘low-income, high-wealth’. Aging farm operators and those with college education and who operate larger sized farms are found more likely to be in the top economic performance category of ‘high-income, high-wealth’.

RISK MANAGEMENT AND ORGANIZATIONAL PERFORMANCE: NEW REVISION OF QMS ISO 9001:2015

Quality management system (QMS) ISO 9000 is a major contribution to achieving local and global competition in the industry. Applying the principles of quality management system and adoption of risk management strategies can help the organization sustainablein their business. Moreover, identifying at early stage thepotential risk can have consequentialresultssuch as eliminatingdefects, reducing cost, meetingcustomer satisfaction and also promotingorganization sustainability. In this study, a modelthathas tendency on how the risk management in the new revision of quality management system (QMS) ISO 9001:2015 can influencethe organizational performanceis conceptually proposed.

Adoption of risk management strategies in European agriculture

Given the increased attention to risk management in the European Union’s (EU) Common Agricultural Policy (CAP), it is important to monitor and evaluate the rates of adoption by farmers and their determinants over time. Current European Agricultural statistics (Farm Accountancy Data Network) capture few indicators that assess such strategies, but complementing data collected during the EU Framework 7 project FLINT have allowed the adoption of risk management strategies and the determinants of farmers’ preference for complementary or substitute instruments to be assessed. Adoption rates of risk management instruments such as insurance contracts, price contracts, off-farm income, other types risk of reduction measures and other gainful activities vary signifi cantly across EU Member States and farming types. Econometric analysis indicates that larger farms more often adopt crop insurance, occupational accident insurance, price contracts and diversifi cation but are less likely to adopt credit avoidance and off-farm employment (at a signifi cance level of 1 per cent). For policy analyses these indicators are a step forward for the determination of the net impacts and establishment of counterfactuals in the long term (i.e. time series encompassing also adverse years) for measuring the impact of the CAP at farm level.

Determinants of risk behaviour: effects of perceived risks and risk attitude on farmer’s adoption of risk management strategies

The importance of risk perception and risk attitude for understanding individual’s risk behaviour are independently well described in literature, but rarely combined in an integrated approach. In this study, we propose a model assuming the choice to implement certain risk management strategies to be directly driven by both perceptions of risks and risk attitude. Other determinants influence the intention to apply different risk strategies mainly indirectly, mediated by risk perception and risk attitude. This conceptual model is empirically tested, using structural equation modelling, for understanding the intention of farmers to implement different common risk management strategies at their farms. Data are gathered in a survey completed by 500 farmers from the Flanders region in Belgium, investigating attitudes towards farming, perceived past exposure to risk, socio-demographic characteristics, farm size, perceptions of the major sources of farm business risk, risk attitudes and the intention to apply common risk management strategies. Our major findings are: (i) perception of major farm business risks have no significant impact on the intention of applying any of the risk strategies under study, (ii) risk attitude does have a significant impact. Therefore, rather than objective risk faced and the subjective interpretation thereof, it is the general risk attitude that influence intended risk strategies to be implemented. A distinction can be made between farmers willing to take risk, who are more inclined to apply ex-ante risk management strategies and risk averse farmers who are less inclined to implement ex-ante risk management strategies but rather cope with the consequences and diminish their effects ex-post when risks have occurred.

A One Health Framework for Estimating the Economic Costs of Zoonotic Diseases on Society

This article presents an integrated epidemiological and economic framework for assessing zoonoses using a “one health” concept. The framework allows for an understanding of the cross-sector economic impact of zoonoses using modified risk analysis and detailing a range of analytical tools. The goal of the framework is to link the analysis outputs of animal and human disease transmission models, economic impact models and evaluation of risk management options to gain improved understanding of factors affecting the adoption of risk management strategies so that investment planning includes the most promising interventions (or sets of interventions) in an integrated fashion. A more complete understanding of the costs of the disease and the costs and benefits of control measures would promote broader implementation of the most efficient and effective control measures, contributing to improved animal and human health, better livelihood outcomes for the poor and macroeconomic growth.

Film management and custody: current and future medicolegal issues.

Filmless, seamless, interactive imaging departments at health centers and freestanding image centers will prompt development of legal and administrative regulations that may be universally applicable and enforced. However, until such time, issues related to custodianship and transferral of imaging studies will remain a local issue, governed by laws and advisories that have far-reaching legal implications. Familiarity with the rationale and particular rules governing a specific locale should facilitate the adoption of risk-management strategies that satisfy the interests of all parties involved in patient care.