One of the factors causing the production fluctuation and productivity decline of shallot farming field is the risk of production. This research aimed to know the production risk impact towards the welfare of households of shallot farmers in Sigi Regency. There were 210 respondents, shallot farmers, used as a sample in this research. The data were collected randomly with sampling method. The result of the research showed that the production risk was directly proportional to the area of arable land cultivated by shallots. The higher the arable land area, the higher the risk of production. Variable land area, total use of shallot farming, urea fertilizer, KCI, TSP, and pesticide use had a positive effect on the production risk function, whereas the use of SP fertiziler had a negative effect. Increased production risk had an impact on decreasing the income of shallot farming, non shallot farming, and non-agricultural income so that farm household income decreases. This increased risk has an impact on reducing farmer household welfare.