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Determinants of smallholder farmers' perceptions of risk in the Eastern Highlands of Ethiopia

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  • Belaineh Legesse
  • Lars Drake

Abstract

This paper reports findings from a study of 178 farm households from two contrasting areas in the Eastern Highlands of Ethiopia. It examines risk perceptions of smallholder farmers under varying contexts. The study utilized both qualitative and quantitative methods of data collection and analysis. It was hypothesized that human capital and household characteristics and orientation, access to resources, infrastructure, information and environmental factors influence perceptions of risks in different ways. Data reduction for independent variables was done by factor analysis (principal component extraction method). Factor analyses identified factors influencing smallholder farmers' perceptions of sources of risks. Logistic regression analyses were used to study the relationships of identified principal components to perceived frequencies of occurrences and consequences of various sources of risks. Logistic regression analyses revealed that asset endowments, locational settings and livelihood diversification strategies pursued determine smallholders' perceived risks. Key findings from the informal survey point out differentiation in perceptions of causes and sources of risks by different actors.

Suggested Citation

  • Belaineh Legesse & Lars Drake, 2005. "Determinants of smallholder farmers' perceptions of risk in the Eastern Highlands of Ethiopia," Journal of Risk Research, Taylor & Francis Journals, vol. 8(5), pages 383-416, July.
  • Handle: RePEc:taf:jriskr:v:8:y:2005:i:5:p:383-416
    DOI: 10.1080/1366987042000192426
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    References listed on IDEAS

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    1. Ellis, Frank, 2000. "Rural Livelihoods and Diversity in Developing Countries," OUP Catalogue, Oxford University Press, number 9780198296966.
    2. Frank Ellis, 2000. "The Determinants of Rural Livelihood Diversification in Developing Countries," Journal of Agricultural Economics, Wiley Blackwell, vol. 51(2), pages 289-302, May.
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    Cited by:

    1. Shakir Hussain Parrey & Suhail Ahmad Bhat, 2019. "Individual risk propensity and agri-entrepreneurial financing effectiveness: strategy for sustainable agri-financing," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 46(1), pages 75-90, March.
    2. Alice Turinawe & Lars Drake & Johnny Mugisha, 2015. "Adoption intensity of soil and water conservation technologies: a case of South Western Uganda," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 17(4), pages 711-730, August.
    3. Bishu, Kinfe & O'Reilly, Seamus & Lahiff, Edward & Steiner, Bodo, 2016. "Cattle farmers’ perceptions of risk and risk management strategies," MPRA Paper 74954, University Library of Munich, Germany.
    4. Woldegebrial Zeweld & Guido Van Huylenbroeck & Girmay Tesfay & Hossein Azadi & Stijn Speelman, 2018. "Impacts of Socio-Psychological Factors on Actual Adoption of Sustainable Land Management Practices in Dryland and Water Stressed Areas," Sustainability, MDPI, vol. 10(9), pages 1-23, August.
    5. Mudombi, Grace, 2011. "Factors Affecting Perceptions and Responsiveness to Climate Variability Induced Hazards," Research Theses 198517, Collaborative Masters Program in Agricultural and Applied Economics.
    6. Mudombi, Grace, 2011. "Factors affecting perceptions and responsiveness to climate variability induced hazards," Research Theses 157508, Collaborative Masters Program in Agricultural and Applied Economics.
    7. Thi Tam Duong & Tom Brewer & Jo Luck & Kerstin Zander, 2019. "A Global Review of Farmers’ Perceptions of Agricultural Risks and Risk Management Strategies," Agriculture, MDPI, vol. 9(1), pages 1-16, January.
    8. Abdul Malik Iddrisu & Alhassan Abdul-Wakeel Karakara & Evans S. Osabuohien, 2022. "Agricultural risks, the COVID-19 pandemic, and farm household welfare and diversification strategies in Africa," WIDER Working Paper Series wp-2022-117, World Institute for Development Economic Research (UNU-WIDER).
    9. Berhane,Wesagn & Haji, Jema & Legesse, Belaineh & Lemma, Tesfaye, 2020. "Smallholder Farmers Innovativeness And Its Determinants In Eastern Hararghe, Oromiya Region, Ethiopia," Review of Agricultural and Applied Economics (RAAE), Faculty of Economics and Management, Slovak Agricultural University in Nitra, vol. 23(1), March.

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