Exploring the attitude of farmers toward risk is important in understanding their managerial decisions, especially given the exposure of farmers to risky events such as drought. However, a survey of the literature finds no study of the risk attitudes of farmers in Turkey. Therefore, this study examines the risk attitudes of farmers in the Lower Seyhan Plain of Turkey. While some variation by utility function exists in the classification of the sampled farmers into risk averse and risk preferring categories, the overwhelming evidence is that the sampled farmers are risk averse. One hundred eighty-two out of 200 estimated Arrow-Pratt risk coefficients imply a risk averse attitude. Thus, these farmers are likely to make managerial decisions that reduce risk, even if the decisions translate into lower income. A policy implication of this finding is that producers are likely to be interested in crop insurance.
Risk management in agriculture, Farmers' risk attitudes in Turkey
BİNİCİ, TURAN; KOÇ, A. ALİ; ZULAUF, CARL R.; and BAYANER, AHMET (2003) "Risk Attitudes of Farmers in Terms of Risk Aversion: A Case Study of Lower Seyhan Plain Farmers in Adana Province, Turkey," Turkish Journal of Agriculture and Forestry: Vol. 27: No. 5, Article 7. Available at: https://journals.tubitak.gov.tr/agriculture/vol27/iss5/7