Comparing risk perceptions and risk management in organic and conventional dairy farming: empirical results from Norway

Abstract

This study was conducted to explore organic and conventional dairy farmers' perceptions of risk and risk management, and to examine relationships between farm and farmer characteristics, risk perceptions, and strategies. The data originate from a survey of conventional (n = 363) and organic (n = 162) dairy farmers in Norway. Organic farmers had the least risk averse perceptions. Institutional and production risks were perceived as primary sources of risk, with farm support payments at the top. Compared to their conventional colleagues, organic farmers gave more weight to institutional factors related to their production systems. Conventional farmers were more concerned about costs of purchased inputs and animal welfare policy. Organic and conventional farmers' management responses were more similar than their risk perceptions. Financial measures such as liquidity and costs of production, disease prevention, and insurance were perceived as important ways to handle risk. Even though perceptions were highly farmer-specific, a number of socio-economic variables were found to be related to risk and risk management. The primary role of institutional risks implies that policy makers should be cautious about changing policy capriciously and they should consider the scope for strategic policy initiatives that give farmers some greater confidence about the longer term. Further, researchers should pay more attention to institutional risks.

Norwegian farmers ceasing certified organic production: Characteristics and reasons

“…This finding matches previous studies of organic farmers in Norway in which they perceived institutional factors as primary sources of risk, especially concerning general and organic farming payments (Flaten et al, 2005). Other highly ranked reasons (overall means higher than 4.75) reflected economic issues.…”

Percepção e medidas de gestão de riscos por produtores de arroz irrigado na Fronteira Oeste do Rio Grande do Sul

“…A análise dos dados teve como base os procedimentos utilizados por MEUWISSEN et al (2001), FLATEN et al (2005 e BORGES (2010). Em uma etapa inicial, calculou-se a média das relevâncias atribuídas pelos entrevistados às fontes e às medidas de gestão de riscos.…”

Managing Risk in Livestock Farming: The Role of Insurance Companies

“…In addition, they often mistrust insurance firms (Njuguna and Arunga, 2013). Meuwissen et al (2001) discussed relative risk attitude and Flaten et al (2005) studied comparative risk aversion. They found that a farmers' attitude towards risk basically reflects a farmer's willingness to take on risk.…”