Impact of Socio-Economic Factors on Risk Behavior of Small Farmers: An Empirical Evidence from Oyo North Agricultural Development Project, Nigeria

Successful policies aimed at improving agricultural production must include consideration of farmers’ attitude toward risk. The present study examines the extent to which incorporating elicited risk attitudes of farmers can help in farm planning. It also explores the possibilities of explaining farmers’ risk behaviour in terms of socioeconomic characteristics relating to the household head (age, farming years, education and family size), the income-generating opportunities of the peasant household (cropped area, level of off-farm income, farm income, number of workers in the family and the quadratic form of the cropped area) and farmers’ access to formal and informal institutions (represented by membership of the community association, loan procurement, and whether or not a farmer is a contact farmer for the agricultural development project). Age appears to be the overriding factor in risk consideration, followed by farm income, family size, off-farm income and loan procurement. The analysis is based on data collected from the savanna zone of Oyo State Agricultural Development Project in Nigeria in 1989-1990. Bibliogr., sum. in English and French.

Title: Impact of Socio-Economic Factors on Risk Behavior of Small Farmers: An Empirical Evidence from Oyo North Agricultural Development Project, Nigeria
Author: Abudi, A.A.
Year: 1996
Periodical: African Development Review
Volume: 8
Issue: 1
Period: June
Pages: 115-126
Language: English
Geographic term: Nigeria
External link: https://onlinelibrary.wiley.com/doi/10.1111/j.1467-8268.1996.tb00083.x/pdf
Abstract: Successful policies aimed at improving agricultural production must include consideration of farmers’ attitude toward risk. The present study examines the extent to which incorporating elicited risk attitudes of farmers can help in farm planning. It also explores the possibilities of explaining farmers’ risk behaviour in terms of socioeconomic characteristics relating to the household head (age, farming years, education and family size), the income-generating opportunities of the peasant household (cropped area, level of off-farm income, farm income, number of workers in the family and the quadratic form of the cropped area) and farmers’ access to formal and informal institutions (represented by membership of the community association, loan procurement, and whether or not a farmer is a contact farmer for the agricultural development project). Age appears to be the overriding factor in risk consideration, followed by farm income, family size, off-farm income and loan procurement. The analysis is based on data collected from the savanna zone of Oyo State Agricultural Development Project in Nigeria in 1989-1990. Bibliogr., sum. in English and French.