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Farmers’ learning preferences and risk management choices

Author

Listed:
  • Bertolozzi-Caredio, Daniele
  • Soriano, Barbara
  • Urquhart, Julie
  • Vigani, Mauro

Abstract

Understanding how farmers learn and how this influences their decisions is still a key question in research, especially in the context of increasing challenges and uncertainties. We explore whether and how different learning preferences, notably learning by doing, from other farmers and through social media, influence farmers’ risk management (RM) choices. Based on a survey of farmers in Spain and the UK, we employed multivariate probit regressions and Poisson models with instrument variables. We found that all learning preferences are significantly correlated to RM choice, with learning through social media and from peers leading to more strategies adopted by the farmer, and learning by doing leading to fewer strategies. The results, however, show that each learning preference affects different specific RM strategies. Our findings suggest that policymakers should consider leveraging informal learning networks to improve farmers’ RM, whereas policy incentives might be designed to formalize and promote social media use (also by existing extension services) to boost the adoption of RM strategies.

Suggested Citation

  • Bertolozzi-Caredio, Daniele & Soriano, Barbara & Urquhart, Julie & Vigani, Mauro, 2024. "Farmers’ learning preferences and risk management choices," IAAE 2024 Conference, August 2-7, 2024, New Delhi, India 344372, International Association of Agricultural Economists (IAAE).
  • Handle: RePEc:ags:cfcp15:344372
    DOI: 10.22004/ag.econ.344372
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    References listed on IDEAS

    as
    1. Mauro Vigani & Jonas Kathage, 2019. "To Risk or Not to Risk? Risk Management and Farm Productivity," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 101(5), pages 1432-1454.
    2. Amir K. Abadi Ghadim & David J. Pannell & Michael P. Burton, 2005. "Risk, uncertainty, and learning in adoption of a crop innovation," Agricultural Economics, International Association of Agricultural Economists, vol. 33(1), pages 1-9, July.
    3. Immanuel Lampe & Daniel Würtenberger, 2019. "Loss Aversion And The Demand For Index Insurance," Working Papers on Finance 1907, University of St. Gallen, School of Finance.
    4. John Knight & Sharada Weir & Tassew Woldehanna, 2003. "The role of education in facilitating risk-taking and innovation in agriculture," Journal of Development Studies, Taylor & Francis Journals, vol. 39(6), pages 1-22.
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    Keywords

    Farm Management; Risk and Uncertainty;

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