Factors influencing hybrid maize farmers' risk attitudes and their perceptions in Punjab Province,Pakistan

Hybrid maize farmers have to face diverse kinds of climate, biological, price and financial risks. Farmers＇ risk perceptions and risk attitudes are essential elements influencing farm operations and management decisions. However, this important issue has been overlooked in the contemporary studies and therefore there is a dearth of literature on this important issue. The present research is therefore, an attempt to fill this gap. This study aims to quantify hybrid maize farmers＇ perceptions of disastrous risks, their attitudes towards risk and to explore the impacts of various farm and farm household factors on farmers＇ risk attitudes and risk perceptions. The present study is conducted in four hybrid maize growing districts of Punjab Province, Pakistan, using cross-sectional data of 400 hybrid maize farmers. Risk matrix and equally likely certainty equivalent （ELCE） method are used to rank farmers＇ perceptions of four catastrophic risk sources including climate, biological, price and financial risks and to investigate farmers＇ risk aversion attitudes, respectively. Furthermore, probit regression is used to analyze the determinants affecting farmers＇ risk attitudes and risk perceptions. The results of the study showed that majority of farmers are risk averse in nature and perceive price, biological and climate to be potential sources of risks to their farm enterprise. In addition, analysis divulges that distance from farm to main market, off-farm income, location dummies for Sahiwal and Okara, age, maize farming experience, access to extension agent, significantly （either negatively or positively） influence farmers＇ risk attitudes and risk perceptions. The study delivers valuable insights for farmers, agricultural insurance sector, extension services researchers and agricultural policy makers about the local understanding of risks to hybrid maize crop in developing countries, like Pakistan, and have implications for research on farmers＇ adaptation to exposed risks.

Maize production under risk:The simultaneous adoption of off-farm income diversification and agricultural credit to manage risk

Farmers in Pakistan continue to produce maize under various types of risks and adopt several strategies to manage those risks. This study is the first attempt to investigate the factors affecting the concurrent adoption of off-farm income diversification and agricultural credit which the farmers use to manage the risk to maize production. We apply bivariate and multinomial probit approaches to the primary data collected from four districts of Punjab Province in Pakistan. The results show that strong correlations exist between the off-farm diversification and agricultural credit which indicates that the use of one risk management strategy leads to another. The findings demonstrate that education, livestock number, maize farming experience, perceptions of biological risks and risk-averse nature of the growers significantly encourage the adoption of diversification as a risk management tool while farm size inversely affects the adoption of diversification. Similarly, in the adoption equation of credit, maize farming experience, farm size, perceptions of price and biological risks and risk attitude of farmers significantly enhance the chances of adopting agricultural credit to manage farm risks. These findings are important for the relevant stakeholders who seek to offer carefully designed risk minimizing options to the maize farmers.