Risk attitude and risk strategy management in red chili business in Langkat Regency North Sumatera Province

Abstract

Red Chili one of the most potential commodities for cultivation. however, red chili farmers do not always experience profits. There are times when farmers often experience enormous losses. This is related to the risks and uncertainty of farming faced by farmers. Therefore, it is necessary to conduct research on the relationship of risk attitudes and risk management strategies in red chili farming in Langkat Regency, North Sumatra Province. The data used are primary data sourced from questionnaires and interviews with 112 red chili farmers in Langkat Regency. The analytical method used is the Pearson Correlation to see relationship of risk attitudes and risk strategies. The results showed that the correlation between the variable risk attitude and risk management strategy was strong, significant and unidirectional or risk attitude had a significant and negative relationship to the intention to implement risk reduction strategies in red chili farming by farmers.