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Assessment of Crop Farmers' Attitude to Risk and Management Methods in Oyo State, Nigeria

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  • Akanbi, Sheu-Usman Oladipo
  • Adekunle, Adedayo Olufemi
  • Mukaila, Ridwan
  • Isola, Abiodun Johnson

Abstract

Agricultural sector faces series of risks which befall at different frequencies. This study examined the crop farmers’ attitude to risks and their management methods in Ogbomoso, Oyo State, Nigeria. Specifically, the study examined the risk attitude of farming households, and analyzed the risk management strategies adopted by farming households in the study area. A four-stage sampling method was adopted to elicit response from selected 150 farming households for this study. The dataset was analyzed with the use of descriptive and inferential statistics. Safety-First-Model (SFM) was employed to analyze the risk attitude among crop farmers. The result revealed that majority of the farming households head was male and married with the mean age of 42 years and a moderately large household size of five persons and inheritance was the prominent means of farmland acquisition. Descriptive statistics showed that high cost of labor input topped the ranking of the risk source in the study followed by high input prices. Lacks of extension advice, low crop prices, were also common. Risk management methods employed to mitigate risk by majority of the farm families was sale of assets followed by income diversification. The SFM result revealed that all the food crop farmers were intermediate risk averse.

Suggested Citation

  • Akanbi, Sheu-Usman Oladipo & Adekunle, Adedayo Olufemi & Mukaila, Ridwan & Isola, Abiodun Johnson, 2022. "Assessment of Crop Farmers' Attitude to Risk and Management Methods in Oyo State, Nigeria," Western Balkan Journal of Agricultural Economics and Rural Development (WBJAERD), Institute of Agricultural Economics, vol. 4(1), June.
    • Handle: RePEc:ags:iepwbj:320875
    DOI: 10.5937/WBJAE2201037O
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    References listed on IDEAS

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    1. Ayinde, O.E., 2016. "Risk analysis in innovation system: a case - study of production of Vitamin A cassava variety among farmers in Nigeria," 2016 Fifth International Conference, September 23-26, 2016, Addis Ababa, Ethiopia 249326, African Association of Agricultural Economists (AAAE).
    2. John M. Antle, 1987. "Econometric Estimation of Producers' Risk Attitudes," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 69(3), pages 509-522.
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    Keywords

    Farm Management; Risk and Uncertainty;

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