IDEAS home Printed from https://ideas.repec.org/p/ags/aaae07/52080.html
   My bibliography  Save this paper

Risk aversion and sustainable maize production in Nigeria: Some challenges and prospects for agricultural and economic development

Author

Listed:
  • Olarinde, Luke O.
  • Manyong, Victor M.

Abstract

This paper determines the degree or extent of farmer’s risk aversion that affects sustainable maize production in Northern Nigeria. Using a ridge regression analysis, a measure of risk aversion was derived for each individual farmer in a model of safety-first behaviour from a cross-sectional survey of 350 maize producers in northern Nigeria. The distribution of the degree of risk aversion shows a high skewness towards the risk averters (high risk farmers) and centered around 1.20, and standard deviation of 0.37. This distribution is then explained by a set of specific variables that characterize the farmers’ behaviour in the study area using a Tobit model. Susceptibility to risk was found to be highly premised on the socioeconomic factors (e.g. age of household head), farm specific variables (e.g. proportion of income from maize) and farmers’ attitudinal factors against risk (e.g. safety first level of probability of sale). These findings can be used to construct a framework of development programs for peasant farmers, which provide some challenging prospects

Suggested Citation

  • Olarinde, Luke O. & Manyong, Victor M., 2008. "Risk aversion and sustainable maize production in Nigeria: Some challenges and prospects for agricultural and economic development," 2007 Second International Conference, August 20-22, 2007, Accra, Ghana 52080, African Association of Agricultural Economists (AAAE).
    • Handle: RePEc:ags:aaae07:52080
    DOI: 10.22004/ag.econ.52080
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/52080/files/Olarinde.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.52080?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. Eli Feinerman & Israel Finkelshtain, 1996. "Introducing socioeconomic characteristics into production analysis under risk," Agricultural Economics, International Association of Agricultural Economists, vol. 13(3), pages 149-161, February.
    2. Adesina, Akinwumi A. & Baidu-Forson, Jojo, 1995. "Farmers' perceptions and adoption of new agricultural technology: evidence from analysis in Burkina Faso and Guinea, West Africa," Agricultural Economics, Blackwell, vol. 13(1), pages 1-9, October.
    3. McDonald, John F & Moffitt, Robert A, 1980. "The Uses of Tobit Analysis," The Review of Economics and Statistics, MIT Press, vol. 62(2), pages 318-321, May.
    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. Sall, S. & Norman, D. & Featherstone, A. M., 2000. "Quantitative assessment of improved rice variety adoption: the farmer's perspective," Agricultural Systems, Elsevier, vol. 66(2), pages 129-144, November.
    2. Jabbar, Mohammad A. & Beyene, Hailu & Mohamed Saleem, M A & Gebreselassie, Solomon, 1998. "Adoption pathways for new agricultural technologies : An approach and an application to Vertisols management technology in Ethiopia," Research Reports 182901, International Livestock Research Institute.
    3. Obedy Eric, Gido, 2012. "Factors Affecting Adoption and Intensity of Use of Organic Soil Management Practices in Maize Production in Bungoma County, Kenya," Research Theses 243445, Collaborative Masters Program in Agricultural and Applied Economics.
    4. Mianseli Elisabeth Tankoano & Martin Sawadogo, 2022. "Farmers' perceptions and adoption of agroecological practices in the Central-North region of Burkina Faso [Perceptions des agriculteurs et adoption des pratiques agroécologiques dans la région du C," Post-Print hal-03939540, HAL.
    5. Choudhury, Hari K. & Goswami, Kishor, 2013. "Determinants of expansion of area under jatropha plantation in North East India: A Tobit analysis," Forest Policy and Economics, Elsevier, vol. 30(C), pages 46-52.
    6. Alene, Arega D. & Poonyth, Daneswar & Hassan, Rashid M., 2000. "Determinants of adoption and intensity of use of improved maize varieties in the Central Highlands of Ethiopia: A Tobit analysis," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 39(4), pages 1-11, December.
    7. Langyintuo, Augustine S. & Mekuria, Mulugetta, 2005. "Accounting for Neighborhood Influence in Estimating Factors Determining the Adoption of Improved Agricultural Technologies," 2005 Annual meeting, July 24-27, Providence, RI 19521, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    8. Bernd Süssmuth, 2012. "The Econometric Analysis of Willingness to Pay for Intangibles with Experience Good Character," Chapters, in: Wolfgang Maennig & Andrew Zimbalist (ed.), International Handbook on the Economics of Mega Sporting Events, chapter 14, Edward Elgar Publishing.
    9. Alston Lee J. & Mueller Bernardo, 2018. "Priests, Conflicts and Property Rights: the Impacts on Tenancy and Land Use in Brazil," Man and the Economy, De Gruyter, vol. 5(1), pages 1-26, June.
    10. Insik Min & Jong‐Ho Kim, 2003. "Modeling Credit Card Borrowing: A Comparison of Type I and Type II Tobit Approaches," Southern Economic Journal, John Wiley & Sons, vol. 70(1), pages 128-143, July.
    11. Curtis E. Clements & Ryan K. Jessup & John D. Neill & Paul Wertheim, 2018. "The relationship between director tenure and director quality," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 15(3), pages 142-161, August.
    12. Peter Haan & Victoria Prowse & Arne Uhlendorff, 2008. "Employment effects of welfare reforms: Evidence from a dynamic structural life-cycle model," PSE Working Papers halshs-00586748, HAL.
    13. Mazvimavi, Kizito & Twomlow, Steve, 2009. "Socioeconomic and institutional factors influencing adoption of conservation farming by vulnerable households in Zimbabwe," Agricultural Systems, Elsevier, vol. 101(1-2), pages 20-29, June.
    14. Obafèmi P. Koutchadé & Alain Carpentier & Fabienne Femenia, 2021. "Modeling Corners, Kinks, and Jumps in Crop Acreage Choices: Impacts of the EU Support to Protein Crops," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(4), pages 1502-1524, August.
    15. Seyoung Chae & Almas Heshmati, 2024. "The effects of lifetime work experience on incidence and severity of elderly poverty in Korea," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 26(2), pages 521-554, August.
    16. Erik Bohlin & Gary Madden & Aaron Morey, 2010. "An Econometric Analysis of 3G Auction Spectrum Valuations," RSCAS Working Papers 2010/55, European University Institute.
    17. Francesco Gangi & Lucia Michela Daniele, 2017. "Remarkable Funders: How Early-Late Backers and Mentors Affect Reward-Based Crowdfunding Campaigns," International Business Research, Canadian Center of Science and Education, vol. 10(11), pages 58-69, November.
    18. Taniguchi, Kiyoshi & Chern, Wen S., 2000. "Income Elasticity Of Rice Demand In Japan And Its Implications: Cross-Sectional Data Analysis," 2000 Annual meeting, July 30-August 2, Tampa, FL 21755, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    19. Evan J. Miller-Tait & Sandeep Mohapatra & M. K. (Marty) Luckert & Brent M. Swallow, 2019. "Processing technologies for undervalued grains in rural India: on target to help the poor?," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 11(1), pages 151-166, February.
    20. Sousa-Poza, Alfonso & Ziegler, Alexandre, 2003. "Asymmetric information about workers' productivity as a cause for inefficient long working hours," Labour Economics, Elsevier, vol. 10(6), pages 727-747, 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:ags:aaae07:52080. 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: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaaeaea.html .

    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.