Risk perceptions, preferences and management strategies: evidence from a case study using German livestock farmers

Abstract

We analyze factors affecting farmers' choice accounting for farm, farmer and household characteristics as well as elicited risk perception and risk preferences. We consider three alternative hypothetical methods for assessing risk preferences to test the stability and behavioral validity of them. Our case study focusses on livestock farmers in the German region North-Rhine-Westphalia. We find that risk preferences are context depending, i.e. differ across different fields of farm-level decision making. Furthermore, our analysis shows that risk averse farmers are more likely to prioritize on-farm risk management strategies over off-farm strategies. Moreover, higher risk perception, age, subjective numeracy, farm succession, farm size and the proportion of rented land show significant impact on farmers' risk behavior.

Management strategies against Drosophila suzukii: insights into Swiss grape growers choices

“…Due to lack of data, we have no exact information on the pest pressure faced by grape growers. Nevertheless, we have information on the perceived infestation level, which is assumed to influence the decisions they take . Infestation pressure depends on varieties and the measures adopted are specific to the variety and type of grape (i.e.…”

“…However, most infestation control measures are laborious and damage cannot always be assigned to D. suzukii .] Second, perception of infestation and infestation probabilities is highly subjective and influences decisions made by individual growers . The perceived infestation level is an important source of information since it probably defines growers' strategies.…”

“…Second, perception of infestation and infestation probabilities is highly subjective and influences decisions made by individual growers. 54 The perceived infestation level is an important source of information since it probably defines growers' strategies. Growers could indicate an infestation level between 'no infestation at all' to over 75% (see Supporting Information, File S1 in Part S1.…”

Diversification in peri-urban agriculture: a case study in the Ruhr metropolitan region

“…We consider farms as diversified if farm resources (land, labor or capital) are used on the farm for activities other than production of conventional crops and livestock to generate income e.g. on-farm non-agricultural diversification (Meraner and Finger 2017a). More specifically, we include: i) agritourism activities (gastronomy, accommodation, renting out facilities and recreational activities), ii) the provision of services (social services, land or forest services), iii) equestrian businesses, iv) energy production (solar, wind or biogas energy production), v) processing (plant products or animal products) and vi) direct sales activities (on-farm shop, delivery service, market stand, street stand, vending machine and party-service).…”

Farm Risk Sources and Their Mitigation: A Case of Cotton Growers in Punjab

“…Such risks originate from single or multifarious sources such as climate variation, uncertain prices, unpredictable government policies, international markets situation and other factors like geographical location, demographic variables and institutional structures leading to variations in farm incomes and significantly influencing goals, motivations and farm production decisions. Although, different typologies are used to designate agricultural risks but they mainly involve production, marketing, financial, legal, human risks (Miller et al, 2004), or business risk involving production, marketing, institutional and personal risks (Hardaker et al, 2004), nevertheless, their mitigation is highly dependent on farmers' perceptions about the frequency and intensity (Meraner and Finger, 2017). Risk perception plays a significant role in framing decisions to address anticipated or experienced risks.…”