The article assesses the determinants of farmers＇ decisions to participate in organic farming, eliciting farmers risk preferences and empirically analysing farmer＇s sources of risk and risk management strategies. Th...The article assesses the determinants of farmers＇ decisions to participate in organic farming, eliciting farmers risk preferences and empirically analysing farmer＇s sources of risk and risk management strategies. The ordered probit results indicate that older farmers, who are less risk averse and reside in the sub-ward Ogagwini, Ezigani and Hwayi were more likely to be certified organic. Similarly, the propensity to adopt organic farming is positively correlated to household size, livestock ownership, asset base and tenure security. At higher pay-offs, farmers were intermediate to moderately risk-averse, with little variation according to personal characteristics. In general, price, production and financial risks were perceived as important sources of risk. Seven principal components, explaining 66.13% of the variation were extracted. Socio-economic factors having a significant effect on the various sources of risk were age, gender, education, location, information access and risk taking ability. The dimensions of risk strategies were named as diversification, precautionary savings and social networks. Results provide practical insights for policy changes relevant in motivating the adoption of organic practices, increasing smallholder farmers＇ capacity to manage risk and driving growth in the organic food market.展开更多
文摘The article assesses the determinants of farmers＇ decisions to participate in organic farming, eliciting farmers risk preferences and empirically analysing farmer＇s sources of risk and risk management strategies. The ordered probit results indicate that older farmers, who are less risk averse and reside in the sub-ward Ogagwini, Ezigani and Hwayi were more likely to be certified organic. Similarly, the propensity to adopt organic farming is positively correlated to household size, livestock ownership, asset base and tenure security. At higher pay-offs, farmers were intermediate to moderately risk-averse, with little variation according to personal characteristics. In general, price, production and financial risks were perceived as important sources of risk. Seven principal components, explaining 66.13% of the variation were extracted. Socio-economic factors having a significant effect on the various sources of risk were age, gender, education, location, information access and risk taking ability. The dimensions of risk strategies were named as diversification, precautionary savings and social networks. Results provide practical insights for policy changes relevant in motivating the adoption of organic practices, increasing smallholder farmers＇ capacity to manage risk and driving growth in the organic food market.
