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Risk and Planning in Agriculture: How Planning on Dairy Farms in Ireland Is Affected by Farmers’ Regulatory Focus

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  • John Garvey
  • Gordon Sirr
  • Deirdre O'Shea
  • Fergal O'Brien

Abstract

This article examines how planning on dairy farms is affected by farmers' motivation. It argues that farmers' choice of expansion strategies can be specified in terms of risk decision making and understood as either prevention‐focused or promotion‐focused motivation. This relationship was empirically examined using mediated regression analyses where promotion/prevention focus was the independent variable and its effect on total milk production via planned expansion strategies was examined. The results indicate that promotion focus among farmers has an indirect effect on farm expansion via planning strategies that incur greater risk to the farm enterprise. Regulatory focus on the part of farmers has an influence on farmers' planning and risk management activities and must be accounted for in the design and implementation of policy and risk management tools in agriculture.

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  • John Garvey & Gordon Sirr & Deirdre O'Shea & Fergal O'Brien, 2019. "Risk and Planning in Agriculture: How Planning on Dairy Farms in Ireland Is Affected by Farmers’ Regulatory Focus," Risk Analysis, John Wiley & Sons, vol. 39(7), pages 1491-1502, July.
    • Handle: RePEc:wly:riskan:v:39:y:2019:i:7:p:1491-1502
    DOI: 10.1111/risa.13254
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    Cited by:

    1. Pardeshi, Shefali & Loughrey, Jason & O’Connor, Declan, 2024. "Farm Investment and Adoption of Fixed Milk Price Contracts on Irish Dairy Farms," IAAE 2024 Conference, August 2-7, 2024, New Delhi, India 344291, International Association of Agricultural Economists (IAAE).

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