IDEAS home Printed from https://ideas.repec.org/p/ags/puaesp/28677.html
   My bibliography  Save this paper

Effects Of Farmers' Risk Attitudes And Personality Types On Production And Marketing Decisions

Author

Listed:
  • Xu, Pei
  • Alexander, Corinne E.
  • Patrick, George F.
  • Musser, Wesley N.

Abstract

Producers' risk perceptions, as well as their empirical measurement, have been an on-going concern for agricultural economists. Identification and categorization of producers' risk attitudes is important in both research and extension contexts. This study explores some alternative measures of farmers' attitudes and their relationships with observed producer behavior. The effect of farmers' personality types, as derived from the Myers-Briggs personality type indicator test, on marketing behavior is also explored. There were positive and statistically significant correlations of producers' risk attitudes in various areas of the farm business. However, there are also some differences in producers' willingness to risk, especially in the finance area. Although a number of variables were statistically significant, farm operator characteristics, characteristics of the farm operation and risk attitudes of the farm operator had little effect on measures of behavior thought to involve risk/return trade-offs. The Myers-Briggs personality types were used in an analysis of marketing behavior that focused on marketing tools other than the spot (cash) market. Although some of the personality types had significant effects, there were often differences between the marketing behavior associated with corn and soybeans.

Suggested Citation

  • Xu, Pei & Alexander, Corinne E. & Patrick, George F. & Musser, Wesley N., 2005. "Effects Of Farmers' Risk Attitudes And Personality Types On Production And Marketing Decisions," Staff Papers 28677, Purdue University, Department of Agricultural Economics.
  • Handle: RePEc:ags:puaesp:28677
    DOI: 10.22004/ag.econ.28677
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/28677/files/sp050010.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.28677?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
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Halter, A.N. & Mason, Robert, 1978. "Utility Measurement For Those Who Need To Know," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 3(2), pages 1-12, December.
    2. Young, Douglas L., 1979. "Risk Preferences Of Agricultural Producers: Their Use In Extension And Research," 1979 Annual Meeting, July 29-August 1, Pullman, Washington 278203, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Alan Collins & Wesley N. Musser & Robert Mason, 1991. "Prospect Theory and Risk Preferences of Oregon Seed Producers," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(2), pages 429-435.
    4. Douglas L. Young, 1979. "Risk Preferences of Agricultural Producers: Their Use in Extension and Research," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 61(5), pages 1063-1070.
    5. Whittaker, James K. & Winter, John R., 1980. "Risk Preferences Of Farmers: An Empirical Example, Some Questions, And Suggestions For Future Research," Risk Analysis in Agriculture: Research and Educational Developments, January 16-18, 1980, Tucson, Arizona 271571, Regional Research Projects > W-149: An Economic Evaluation of Managing Market Risks in Agriculture.
    6. David T. Eckman & George F. Patrick & Wesley N. Musser, 1996. "Factors Affecting Written Marketing Plan Adoption by Large-Scale Grain Producers," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 18(4), pages 565-574.
    7. Young, Douglas & Lin, William & Pope, Rulon & Robison, Lindon & Selley, Roger, 1979. "Risk Preferences Of Agricultual Producers:Their Measurement And Use," Risk Management in Agriculture: Behavioral, Managerial, and Policy Issues, January 25-26, 1979, San Francisco, California 271459, Regional Research Projects > W-149: An Economic Evaluation of Managing Market Risks in Agriculture.
    8. Gary Bond & Bernard Wonder, 1981. "Risk Attitudes Amongst Australian Farmers: Reply," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 25(1), pages 77-82, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Williams, John & Malcolm, Bill, 2012. "Farmer decisions about selling wheat and managing wheat price risk in Australia," Australasian Agribusiness Review, University of Melbourne, Department of Agriculture and Food Systems, vol. 20, pages 1-10.
    2. Yuki Yano & David Blandford, 2009. "Use of Compliance Rewards in Agri‐environmental Schemes," Journal of Agricultural Economics, Wiley Blackwell, vol. 60(3), pages 530-545, September.

    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. Harris, Thomas R. & Mapp, Harry P. Jr., 1981. "Irrigation Scheduling In The Oklahoma Panhandle Using Stochastic Dominance Theory," 1981 Annual Meeting, July 26-29, Clemson, South Carolina 279304, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Patrick, George F. & Whitaker, Suzanne H. & Blake, Brian F., 1980. "Factors Affecting Farmers' Risk-Income Preferences," 1980 Annual Meeting, July 27-30, Urbana-Champaign, Illinois 278878, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Ahearn, Mary Clare & Collender, Robert N. & Diao, Xinshen & Harrington, David H. & Hoppe, Robert A. & Korb, Penelope J. & Makki, Shiva S. & Morehart, Mitchell J. & Roberts, Michael J. & Roe, Terry L. , 2004. "Decoupled Payments In A Changing Policy Setting," Agricultural Economic Reports 33981, United States Department of Agriculture, Economic Research Service.
    4. Sulewski, Piotr & Kłoczko-Gajewska, Anna, 2014. "Farmers’ risk perception, risk aversion and strategies to cope with production risk: an empirical study from Poland," Studies in Agricultural Economics, Research Institute for Agricultural Economics, vol. 116(3), pages 1-8, December.
    5. Patrick, George F. & Blake, Brian F. & Whittaker, Suzanne H., 1981. "Magnitude Estimation: An Application To Farmers' Risk-Income Preferences," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 6(2), pages 1-10, December.
    6. Loïc Levi & Laure Latruffe & Aude Ridier, 2019. "Farm performance and investment decisions: evidence from the French (Brittany) dairy sector," Working Papers SMART 19-01, INRAE UMR SMART.
    7. Marra, Michele & Pannell, David J. & Abadi Ghadim, Amir, 2003. "The economics of risk, uncertainty and learning in the adoption of new agricultural technologies: where are we on the learning curve?," Agricultural Systems, Elsevier, vol. 75(2-3), pages 215-234.
    8. Musser, Wesley N., 1994. "Progress In Risk Analysis In Regional Projects," 1994 Quantifying Long Run Agricultural Risks and Evaluating Farmer Responses Risk, Technical Committee Meeting, March 24-26, 1994, Gulf Shores State Park, Alabama 271553, Regional Research Projects > S-232: Quantifying Long Run Agricultural Risks and Evaluating Farmer Responses to Risk.
    9. Gomez-Limon, Jose A. & Arriaza, Manuel & Riesgo, Laura, 2003. "An MCDM analysis of agricultural risk aversion," European Journal of Operational Research, Elsevier, vol. 151(3), pages 569-585, December.
    10. Knowles, Glenn J., 1980. "Estimating Utility Functions," Risk Analysis in Agriculture: Research and Educational Developments, January 16-18, 1980, Tucson, Arizona 271570, Regional Research Projects > W-149: An Economic Evaluation of Managing Market Risks in Agriculture.
    11. Bravo-Ureta, Boris E. & Helmers, Glenn A., 1980. "E,V Frontier Analysis Using Total And Random Variance As Measures Of Risk," 1980 Annual Meeting, July 27-30, Urbana-Champaign, Illinois 279235, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    12. Bard, Sharon K. & Barry, Peter J., 2001. "Assessing Farmers' Attitudes Toward Risk Using The "Closing-In" Method," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 26(1), pages 1-13, July.
    13. Young, Douglas L. & Van Kooten, G.C., 1988. "Incorporating Risk Into A Dynamic Programming Application: Flexcropping," Regional Research Projects > 1988: S-180 Annual Meeting, March 20-23, 1988, Savannah, Georgia 272781, Regional Research Projects > S-180: An Economic Analysis of Risk Management Strategies for Agricultural Production Firms.
    14. Erasmus, Barend & van Jaarsveld, Albert & van Zyl, Johan & Vink, Nick, 2000. "The effects of climate change on the farm sector in the Western Cape," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 39(4), pages 1-15, December.
    15. Christensen, Lee A. & Miranowski, John A., 1982. "PERCEPTIONS, ATTITUDES AND RISK: Overlooked Variables in Formulating Public Policy on Soil Conservation and Water Quality," 1982 Annual Meeting, August 1-4, Logan, Utah 279212, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    16. André, Francisco J. & Herrero, Inés & Riesgo, Laura, 2010. "A modified DEA model to estimate the importance of objectives with an application to agricultural economics," Omega, Elsevier, vol. 38(5), pages 371-382, October.
    17. van Zyl, J. & Groenewald, J. A., 1986. "A Comparison Of Certain Decision-Making Techniques Under Risk - An Empirical Investigation Of Maize Cultivar Selection," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 25(1), February.
    18. Basanta R. Dhungana & Peter L. Nuthall & Gilbert V. Nartea, 2004. "Measuring the economic inefficiency of Nepalese rice farms using data envelopment analysis," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 48(2), pages 347-369, June.
    19. Messina, C. D. & Hansen, J. W. & Hall, A. J., 1999. "Land allocation conditioned on El Nino-Southern Oscillation phases in the Pampas of Argentina," Agricultural Systems, Elsevier, vol. 60(3), pages 197-212, June.
    20. Love, Ross O. & Robison, Lindon J., 1984. "An Empirical Analysis Of The Intertemporal Stability Of Risk Preference," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 16(1), pages 1-7, July.

    More about this item

    Keywords

    Farm Management; Risk and Uncertainty;

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

    Statistics

    Access and download statistics

    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:puaesp:28677. 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/dapurus.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.