Production risk management and its impacts at farm level : the case of Pakistan | |
| Author | Ullah, Raza |
| Call Number | AIT Diss. no.AS-14-01 |
| Subject(s) | Farms--Pakistan Agriculture--Risk management--Pakistan |
| Note | A dissertation submitted in partial fulfillment of the requirements for the degree of Doctor of Philosophy in Agricultural Systems and Engineering, School of Environment, Resources and Development |
| Publisher | Asian Institute of Technology |
| Series Statement | Dissertation ; no. AS-14-01 |
| Abstract | Agricultural activities are subjected to a wide range of risks because of the variable economic and biophysical environment in which farming operates . The uncertainties and risks in agriculture are diverse in nature ranging from events related to weather conditions and animal diseases; changes in agricultural product prices to fertilizer and other input s ; and from financial uncertainties to policy and regulatory risks . The existence of risk in agriculture has long bee n observed as having a significant influence on farmers’ production and investment decisions. There are various sources of risk associated with farm enterprise including production risk, marketing risk , financial risk , legal and environmental risk and huma n resources risk . Among the major risks farmers face is production risk. Agricultural production is riddled with risks that can adversely affect production levels and lead to sizeable losses . Since production output is the main source of revenue for agricu ltural operations, it is important for farmers to recognize and manage production risk . Farmers have number of options to manage risk at farm level and many of them utilize these options simultaneously. However, previous studies have ignored the potential correlation among the risk management adoption decisions and assume that these decisions are independent of each other.Keeping in view the correlation of the risk management adoption decisions and the potential for simultaneous adoption of these risk man agement tools, the present study is designed to investigate the impact of various factors on farmers ’ risk management adoption decisions using multivariate and multinomial probit approaches. For this study, 8 villages in 4 districts of Khyber Pakhtunkhwa p rovince of Pakistan are selected using a multistage sampling technique and 330 respondents are randomly selected for interview. Based on access to main markets and other publically provided services, the selected districts are further categorized in two re gions. Region 1 include Peshawar and Charsadda districts, located in Peshawar valley and farmers have relatively higher access to main markets, extension and other information sources and institutional credit sources. While region 2 consist of Swat and Sha ngla districts where farmers have lower access to publically provided services including information and credit and are far from main markets. Three risk management tools, namely diversification, precautionary savings and credit are considered for the stud y. The impact of farm and farm household characteristics (age, education and farming experience of the household head, monthly off - farm income of the farming household, proportion of own land and farm size), farmers’ perception of major risk sources (risk of flood, risk of heavy rains, risk of pest and diseases and risk of drought), farmers’ risk attitude and farmers’ access to information and credit sources (both formal and informal sources) are investigated on their decisions to adopt the three risk mana gement tools. |
| Year | 2014 |
| Corresponding Series Added Entry | Asian Institute of Technology. Dissertation ; no. AS-14-01 |
| Type | Dissertation |
| School | School of Environment, Resources, and Development (SERD) |
| Department | Department of Food, Agriculture and Natural Resources (Former title: Department of Food Agriculture, and BioResources (DFAB)) |
| Academic Program/FoS | Agricultural and Aquatic Systems(AS) |
| Chairperson(s) | Ganesh P. Shivakoti; |
| Examination Committee(s) | Damien Jourdain ;Shobhakar Dhakal ;Datta, Avishek; |
| Scholarship Donor(s) | Higher Education Commission (HEC), Pakistan ;Asian Institute of Technology Fellowship; |
| Degree | Thesis (Ph.D.) - Asian Institute of Technology, 2014 |