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Farmers' Risk Preferences and Rice Production: Experimental and Panel Data Evidence from Uganda

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  • Yoko Kijima

    (National Graduate Institute for Policy Studies, Tokyo, Japan)

Abstract

Although rice has been a prominent cash crop in areas with access to lowland in Uganda, the adoption of rice and area expansion have stagnated despite the Government of Uganda's 2009 National Rice Development Policy and its commitment to doubling rice production over 10 years. Using panel data collected in 2010 and 2017 as well as risk preference data elicited via lab-in-the-field experiments conducted in rural Uganda, we find that farmers with higher loss aversion are less likely to grow rice and expand their rice cultivation areas. This study affirms that risk preferences play a critical role in agricultural production decisions.

Suggested Citation

  • Yoko Kijima, 2019. "Farmers' Risk Preferences and Rice Production: Experimental and Panel Data Evidence from Uganda," GRIPS Discussion Papers 19-26, National Graduate Institute for Policy Studies.
  • Handle: RePEc:ngi:dpaper:19-26
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    Cited by:

    1. Kijima, Yoko, 2020. "Japanese Agricultural ODA and Its Economic Impacts: Technological Assistance for the Rice Green Revolution in Sub-Saharan Africa," Japanese Journal of Agricultural Economics (formerly Japanese Journal of Rural Economics), Agricultural Economics Society of Japan (AESJ), vol. 22.
    2. Dongdong Ge & Xiaolan Kang & Xian Liang & Fangting Xie, 2023. "The Impact of Rural Households’ Part-Time Farming on Grain Output: Promotion or Inhibition?," Agriculture, MDPI, vol. 13(3), pages 1-19, March.
    3. Julia Ihli, Hanna & Chiputwa, Brian & Winter, Etti & Gassner, Anja, 2022. "Risk and time preferences for participating in forest landscape restoration: The case of coffee farmers in Uganda," World Development, Elsevier, vol. 150(C).
    4. Ruth Hill & Carolina Mejia-Mantilla & Kathryn Vasilaky, 2021. "Is the Price Right? Returns to Input Adoption in Uganda," Working Papers 2105, California Polytechnic State University, Department of Economics.
    5. Simon Alibu & Morish Obura & James Ekebu & Doreen Nampamya & Jimmy Lamo & Godfrey Asea & Tae-Seon Park, 2022. "Modest Ag-Extension and Access to Seeds of Aromatic Rice Can Boost Returns of Smallholder Farmers in Uganda, A Case Study," Agriculture, MDPI, vol. 12(8), pages 1-16, August.

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