IDEAS home Printed from https://ideas.repec.org/a/zib/zbfabm/v1y2020i2p75-82.html
   My bibliography  Save this article

Agriculture Risk Management: A Case Study on Rock Melon Farm in Sepang, Selangor, Malaysia

Author

Listed:
  • Wira Abu Bakar

    (Malaysian Agriculture Research and Development Institute (MARDI))

  • Rabihah Md Sum

    (Faculty of Science and Technology, Universiti Sains Islam Malaysia (USIM))

Abstract

The objectives of this study are to identify risks faced by farmers in agriculture project and investigate their risk management practices. The subject of investigation was a rock melon farm in Sepang, Selangor Malaysia. The participants consisted of four farmers and two officers. Data was collected using semi-structured interview questions and analyzed using content analysis. The study finds agriculture risk management can be divided into two groups: agriculture project risks and agriculture production risks. Agriculture project risks are events causing project failure. The risks are created by farmers and risks arise from project operations Risk factors created by farmers are farmers’ attitude, lack of knowledge/training, lack cooperation among farmers and farmer refuse to follow procedures. Risk factors from operations are farm management, insufficient fund/capital, undiversified farm activities, failure to achieve KPI and follow procedures. Agriculture production risks are events causing low productions. The risks arise from machineries efficiency and farming technologies. Risk factors for machinery efficiency are immature machineries technology, and suitability of machines for local crops and small farm size. Risk factors for technology are unsuitable technology for local farming, technology too expensive for small farm and technology transfers from developed countries. The participants view risk management process as consisted of risk identification, risk evaluation/risk analysis, risk assessment and risk treatment. Their risk management strategies to mitigate risks are production diversification, keeping a logbook on farming activities, obtaining skill and knowledge in farm management, job multitasking by farmers and having a comprehensive risk management guidelines.

Suggested Citation

  • Wira Abu Bakar & Rabihah Md Sum, 2020. "Agriculture Risk Management: A Case Study on Rock Melon Farm in Sepang, Selangor, Malaysia," Food & Agribusiness Management (FABM), Zibeline International Publishing, vol. 1(2), pages 75-82, June.
    • Handle: RePEc:zib:zbfabm:v:1:y:2020:i:2:p:75-82
    DOI: 10.26480/fabm.02.2020.75.82
    as

    Download full text from publisher

    File URL: https://fabm.org.my/download/452/
    Download Restriction: no
    File URL: https://libkey.io/10.26480/fabm.02.2020.75.82?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Carlos Castro & Karen Garcia, 2014. "Default risk in agricultural lending, the effects of commodity price volatility and climate," Agricultural Finance Review, Emerald Group Publishing Limited, vol. 74(4), pages 501-521, October.
    2. Robert Holzmann & Steen Jørgensen, 2001. "Social Risk Management: A New Conceptual Framework for Social Protection, and Beyond," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 8(4), pages 529-556, August.
    3. Mittal, Surabhi, 2012. "Modern ICT for Agricultural Development and Risk Management in Smallholder Agriculture in India," Socioeconomics Program Working Papers 147107, CIMMYT: International Maize and Wheat Improvement Center.
    4. Komarek, Adam M. & De Pinto, Alessandro & Smith, Vincent H., 2020. "A review of types of risks in agriculture: What we know and what we need to know," Agricultural Systems, Elsevier, vol. 178(C).
    5. Udo Broll & Peter Welzel & Kit Pong Wong, 2013. "Price Risk and Risk Management in Agriculture," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 7(2), June.
    6. Chen, Zhuo & Huffman, Wallace E. & Rozelle, Scott, 2009. "Farm technology and technical efficiency: Evidence from four regions in China," China Economic Review, Elsevier, vol. 20(2), pages 153-161, June.
    7. Richard Kofi Asravor, 2019. "Farmers’ risk preference and the adoption of risk management strategies in Northern Ghana," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 62(5), pages 881-900, April.
    8. Bacic, Ivan Luiz Zilli & Bregt, Arnold K. & Rossiter, David G., 2006. "A participatory approach for integrating risk assessment into rural decision-making: A case study in Santa Catarina, Brazil," Agricultural Systems, Elsevier, vol. 87(2), pages 229-244, February.
    9. Gilbert Nartea & Satit Aditto & Christopher Gan, 2012. "Sources of Risk and Risk Management Strategies: The Case of Smallholder Farmers in a Developing Economy," Chapters, in: Nerija Banaitiene (ed.), Risk Management - Current Issues and Challenges, IntechOpen.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. A.N. Vijayakumar, 2023. "Declining trade interest in Indian commodity derivatives: a survey-based study on cardamom futures contract," Global Business and Economics Review, Inderscience Enterprises Ltd, vol. 28(3), pages 333-346.
    2. Muhammad Amjed Iqbal & Azhar Abbas & Syed Asif Ali Naqvi & Muhammad Rizwan & Abdus Samie & Umar Ijaz Ahmed, 2020. "Drivers of Farm Households’ Perceived Risk Sources and Factors Affecting Uptake of Mitigation Strategies in Punjab Pakistan: Implications for Sustainable Agriculture," Sustainability, MDPI, vol. 12(23), pages 1-17, November.
    3. Blazquez-Soriano, Amparo & Ramos-Sandoval, Rosmery, 2022. "Information transfer as a tool to improve the resilience of farmers against the effects of climate change: The case of the Peruvian National Agrarian Innovation System," Agricultural Systems, Elsevier, vol. 200(C).
    4. Thomas Eichner & Andreas Wagener, 2002. "Increases in Risk and the Welfare State," CESifo Working Paper Series 685, CESifo.
    5. Silvia Saravia-Matus & T. S. Amjath-Babu & Sreejith Aravindakshan & Stefan Sieber & Jimmy A. Saravia & Sergio Gomez y Paloma, 2021. "Can Enhancing Efficiency Promote the Economic Viability of Smallholder Farmers? A Case of Sierra Leone," Sustainability, MDPI, vol. 13(8), pages 1-17, April.
    6. Ulf Römer & Oliver Musshoff, 2017. "Can agricultural credit scoring for microfinance institutions be implemented and improved by weather data?," Agricultural Finance Review, Emerald Group Publishing Limited, vol. 78(1), pages 83-97, December.
    7. Mingyue Li & Jingjing Wang & Kai Chen & Lianbei Wu, 2020. "Willingness and Behaviors of Farmers’ Green Disposal of Pesticide Packaging Waste in Henan, China: A Perceived Value Formation Mechanism Perspective," IJERPH, MDPI, vol. 17(11), pages 1-18, May.
    8. Nathan D. DeLay & Nathanael M. Thompson & James R. Mintert, 2022. "Precision agriculture technology adoption and technical efficiency," Journal of Agricultural Economics, Wiley Blackwell, vol. 73(1), pages 195-219, February.
    9. Isaac B. Oluwatayo, 2004. "Income Risk and Welfare Status of Rural Households in Nigeria: Ekiti State as a Test Case," WIDER Working Paper Series RP2004-61, World Institute for Development Economic Research (UNU-WIDER).
    10. Jeetendra Prakash Aryal & Cathy R. Farnworth & Ritika Khurana & Srabashi Ray & Tek B. Sapkota & Dil Bahadur Rahut, 2020. "Does women’s participation in agricultural technology adoption decisions affect the adoption of climate‐smart agriculture? Insights from Indo‐Gangetic Plains of India," Review of Development Economics, Wiley Blackwell, vol. 24(3), pages 973-990, August.
    11. Raghbendra Jha & Tu Dang, 2010. "Vulnerability to Poverty in Papua New Guinea in 1996," Asian Economic Journal, East Asian Economic Association, vol. 24(3), pages 235-251, September.
    12. Mingsong Hao & Chuntian Lu & Xi Zhou & Jing Xu, 2023. "How Agricultural Farmers Respond to Risks during the COVID-19 Pandemic: An Exploration through the Dual Social Capitals Approach," Agriculture, MDPI, vol. 13(2), pages 1-18, February.
    13. Jia, Lili, 2012. "Land fragmentation and off-farm labor supply in China," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 66, number 66.
    14. Chandra S. R. Nuthalapati & Chaitanya Nuthalapati, 2021. "Has Open Innovation Taken Root in India? Evidence from Startups Working in Food Value Chains," Circular Economy and Sustainability, Springer, vol. 1(4), pages 1207-1230, December.
    15. Daniele, Bertolozzi-Caredio & Barbara, Soriano & Isabel, Bardaji & Alberto, Garrido, 2022. "Analysis of perceived robustness, adaptability and transformability of Spanish extensive livestock farms under alternative challenging scenarios," Agricultural Systems, Elsevier, vol. 202(C).
    16. Fuhong Zhang & Apurbo Sarkar & Hongyu Wang, 2021. "Does Internet and Information Technology Help Farmers to Maximize Profit: A Cross-Sectional Study of Apple Farmers in Shandong, China," Land, MDPI, vol. 10(4), pages 1-18, April.
    17. Richard P.C. Brown & Eliana V. Jimenez, 2008. "Remittances and Subjective Welfare in a Mixed-Motives Model: Evidence from Fiji," Discussion Papers Series 370, School of Economics, University of Queensland, Australia.
    18. Ingrid Groessl & Ulrich Fritsche, 2006. "The Store-of-Value-Function of Money as a Component of Household Risk Management," Macroeconomics and Finance Series 200606, University of Hamburg, Department of Socioeconomics.
    19. Lim, Jinyang & Nam, Changi & Kim, Seongcheol & Lee, Euehun & Lee, Hongkyu, 2015. "A new regional clustering approach for mobile telecommunications policy in China," Telecommunications Policy, Elsevier, vol. 39(3), pages 296-304.
    20. Shazia Kousar & Farhan Ahmed & Muhammad Afzal & Juan E. Trinidad Segovia, 2023. "Is government spending in the education and health sector necessary for human capital development?," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-11, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zib:zbfabm:v:1:y:2020:i:2:p:75-82. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Zibeline International Publishing (email available below). General contact details of provider: https://fabm.org.my/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.