Abstract This paper determines the degree or extent of farmerâs 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 farmersâ 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 farmersâ 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
Keywords: Maize, Nigeria, Risk aversion, Tobit model, Agricultural and Food Policy, Agricultural Finance, Crop Production/Industries, Farm Management, Food Consumption/Nutrition/Food Safety, Food Security and Poverty, Institutional and Behavioral Economics, International Relations/Trade, Marketing, Productivity Analysis, Research and Development/Tech Change/Emerging Technologies,
In order to set up a list of libraries that you have access to,
you must first login
or sign up.
Then set up a personal list of libraries from your profile page by
clicking on your user name at the top right of any screen.