Risks and determinants of risk management strategies among rural cassava-based farmers in Imo State

Ahaneku, C.E.; Onyeagocha, S. U. O.; Eze, C.C.; Chidiebere-Mark, Nneka Maris; Ellah, G.O.; Isaiah, G.I.

doi:10.4314/jafs.v17i2.9

Cited by 4 publications

(2 citation statements)

References 4 publications

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“…Farmers who were far from formal education could not understand well the benefit of market information access, did not used cooperatives and were unable to create market linkages. Ahaneku et al (2019) and Velandia et al (2009) stated that less education is related to weak adoption rates for market risk management strategies. Mishra and El-Osta (2002) also stated that more educated farmers have high risk aversion behaviour and are more prone to use market risk management practices.…”

Section: Market Risk Management Strategy Determinantsmentioning

confidence: 99%

Risk Aversion and Perception of Farmers about Endogenous Risks: An Empirical Study for Maize Producers in Awi Zone, Amhara Region of Ethiopia

Girma

Kuma

Bedemo

2023

JRFM

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Agriculture is a risky business that is subject to endogenous risks. Endogenous risks caused by input utilization, input affordability and input availability may prove detrimental to the production potential of farmers. The study was aimed at examining the risk perception, risk aversion and risk management strategies of maize producers in Awi zone, which is found in the northwest part of Ethiopia. The study involved 343 respondents who produced maize under risk. Descriptive statistics, a seven-point Likert scale, the observed economic behaviour method, factor analysis and a seemingly unrelated regression model were used to process the data. The results showed that farmers have different perceptions of the endogenous risk associated with input availability and input affordability which has a different probability of occurrence and severity of damage. The observed economic behaviour method showed that farmers in the area also have different risk aversion behaviours: about 7.29% of the respondents in the study area have high risk aversion attitudes, while about 30.61% have medium risk aversion attitudes and 62.10% of them have low risk aversion attitudes. The seemingly unrelated regression model output showed that farmers’ economic, social, demographic and institutional factors, as well as their risk behaviour, determine the risk management strategies that they employ. Maize farmers in the area applied human risk management strategies, production risk management strategies, diversification, financial risk management strategies and marketing risk management strategies to tackle the endogenous risks in the area. It was deduced that maize farmers have a risk averse behaviour even if their risk aversion levels differ based on the scope of the management strategies that they employ to combat risk. Following the finding of the study, a holistic approach to risk management that encompasses all actors, such as farmers, researchers, extension services and financial institutions should be involved to make the appropriate interventions.

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Section: Market Risk Management Strategy Determinantsmentioning

confidence: 99%

Risk Aversion and Perception of Farmers about Endogenous Risks: An Empirical Study for Maize Producers in Awi Zone, Amhara Region of Ethiopia

Girma

Kuma

Bedemo

2023

JRFM

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“…As a decision-making tool, it involves choosing among alternatives that attenuate the downside effects resulting from risks. Farmers including smallholder farmers can adopt strategies to manage risk before the occurrence of the potentially harmful event (ex-ante) or after the likely adverse event has occurred (ex-post) (Harwood et al, 1999;Ahaneku et al, 2019;Mbugua et al, 2019). Risk management can be either informal or formal.…”

Section: Theoretical Frameworkmentioning

confidence: 99%

Smallholder Farmers’ Formal Risk Management Services: Evidence from Southeast Nigeria

Ejiogu¹,

Chidiebere-Mark²,

Emeribe³

2021

IJAFS

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Smallholder farmers’ livelihood activities are mainly centred on agricultural investments which are inherently risky. The risky nature of agricultural activities is further complicated by the fact that resource-poor smallholder farmers operate in an environment with weak markets and less than satisfactory financial services. Formal risk management services hold out the expected external intervention for aiding the resource-poor farmers break out of the vicious circle of poverty. Not all formal risk management services are actually tailored to the scope the smallholder farmers. This study therefore set out to examine the formal risk management services employed by the smallholder farmers in southeast Nigeria. A multi-stage sampling technique was adopted in selecting respondents. Out of 504 smallholder farmers selected, data were successfully collected from 494. Functional analysis, descriptive and inferential statistics were used in data analysis. Results showed that 37% of the smallholder farmers employed formal risk management services; 17.68% subscribed to and utilized direct formal risk management services provided by the Nigerian Agricultural Insurance Corporation. There was a sufficiently deficient use of formal risk management services by smallholder farmers in Southeast Nigeria. It is recommended that the Nigerian Agricultural Insurance Corporation should tailor its services to the needs of the smallholder farmers.

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Productivity value chain analysis of cassava in the Philippines

Onsay

2021

IOP Conf. Ser.: Earth Environ. Sci.

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This paper evaluates the value chain of cassava through crop accounting and financial analysis in Partido district, Camarines Sur, the Philippines. Cassava (Manihot esculenta), locally known as “kamoteng kahoy” is well-known for its ability to produce a reasonable yield in poor soil conditions with less or no farm inputs. This is the reason why cassava is often grown by resource-limited farmers and is regarded as a good source of food security. To analyze its productivity, this study was conducted in 2019. Data gathering was primarily done through focus group discussions and key informant interviews. Results revealed that different gender roles exist where men are primarily responsible for farming while women are for marketing. It also discovered the reason why farmers, though provided with options, often choose the less profitable transaction path, due to perishability of crop. It also solved the mystery of low productivity in this locale as compared with the national and international production. Typhoons, government policies, and pricing mechanisms affect its overall productivity. Cost build-up, value-added, and cost and returns analyses are interesting. Farmers are less profitable yet have the highest opportunity for profitability when the constraints are addressed while sellers have a high degree of profitability due to fewer input costs. The existing entry barriers in each chain were also identified, along with the researcher’s recommendations on how to eliminate or mitigate them. The study can be useful to stakeholders of cassava in designing intervention mechanisms to tap its full potentials.

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Risks and determinants of risk management strategies among rural cassava-based farmers in Imo State

Cited by 4 publications

References 4 publications

Risk Aversion and Perception of Farmers about Endogenous Risks: An Empirical Study for Maize Producers in Awi Zone, Amhara Region of Ethiopia

Risk Aversion and Perception of Farmers about Endogenous Risks: An Empirical Study for Maize Producers in Awi Zone, Amhara Region of Ethiopia

Smallholder Farmers’ Formal Risk Management Services: Evidence from Southeast Nigeria

Productivity value chain analysis of cassava in the Philippines

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