Managing Risk in Agriculture
A Development Perspective
The book addresses and documents farmers' risks in developing and emerging economies. It draws lessons from experimental economics on measuring risk preferences, attitudes, gender differences in managing risks, and risk management strategies in countries across Africa and Asia. It argues policy makers, especially in emerging economies, need a better understanding of farmers' attitudes toward risk and choices of risk management strategies when designing policies to support production agriculture. The book includes chapters on three themes: understanding risk attitudes and preferences; using experimental economics to measure risk, preferences, and risk management strategies; and understanding climate change, risk, and risk management. The book critically examines the currently held beliefs about risk preference, attitudes, and empirical estimation of risk management strategies, emphasizing developing and emerging economies (DEE).
"Over time, agricultural production practices have evolved, as have the markets and value chains for food and agricultural products. A constant consideration, however, and one that continues to define agriculture worldwide, is risk. The risks that impinge on agriculture come in all shapes and sizes. Of course, production risks are ubiquitous. But so are market risks. And the same is true for macroeconomic and financial risks and the risks associated with an evolving climate. This book will be a valuable, comprehensive resource for any applied economist desiring to understand the risk management principles relevant to modern food and agricultural systems."Matthew Holt, Prof. and head of the Department of Agricultural and Applied Economics, Virginia Tech University, Blacksburg, VA
"The agricultural development space is an inherently risky one and this welcome collection belatedly helps to plug an important hole."Jock R. Anderson, Emeritus Professor of Agricultural Economics, University of New England, Armidale, Australia
UNDERSTANDING AND MODELING RISK, ATTITUDES, AND PREFERENCES
1. Principles of Good Practice in Dealing with Risk in Agriculture: A Review of Agricultural Decision Analysis. - J. Brian Hardaker and Gudbrand Lien.
2. Risk Preferences, Price Uncertainties, and Production Risk: A Survey. - Subal C. Kumbhakar.
3. Subjective Probabilities and Farmers’ Decision-Making in Developing Countries. - Simone Cerroni and Ruggiero Rippo.
4. Strategic Risk and Collective Action In Agriculture. – Ariel Singerman and Sergio H. Lence.
5. Assessing the Impact of Risk-Reducing Strategies on Food Security: Evidence from an Emerging Economy. - Aditya R. Khanal, Ashok K. Mishra and Gudbrand Lien.
USING EXPERIMENTAL ECONOMICS TO MEASURE RISK,
PREFERENCES, AND RISK MANAGEMENT STRATEGIES
6. Eliciting Farmers’ Risk and Uncertainty Preferences Using Contextualized Field Experiments in Developing Countries: A Pilot Study. - Simone Cerroni, Martina Bozzola, and Ruggiero Rippo.
7. Examining the Role of Risk Attitudes in Agricultural Management Decisions in Emerging and Developing Countries: Experimental Evidence. - Toritseju Begho and Kehinde Odeniyi.
8. How to Measure Risk Attitudes Among Poor Rural Households: An Overview of Popular Risk Elicitation Methods. - Selina Bruns.
9. Agricultural Risk Management and Technology. - Jean-Paul Chavas.
10. Farmer Risk Preferences and Willingness to Pay for African Rice Landrace Seed: An Experimental Choice Analysis. - Aminou Arouna, Nicholas Tyack, and Rachidi Aboudou.
11. Smallholders’ Willingness to Pay for Alternative Types of Crop Insurance in China. - H. Holly Wang and Lu Liu.
12. Role of Risk Aversion and Insurance Adoption in Extreme Climatic Shocks: Evidence from Indian Paddy Growers. – Asis Kumar Senapati.
13. Attitudes toward Risk and Farmers’ Willingness to Pay for Drought-Tolerant Maize and Weather Index Insurance in West Africa. - Tahirou Abdoulaye, Ali Essossinam, Abel-Gautier Kouakou and Tesfamicheal Wossen.
CLIMATE CHANGE, RISK, AND RISK MANAGEMENT
14. Finance Utilization and Chili Contract Fulfillment. – Eliana Wulandari, Miranda P.M. Meuwissen, Maman H. Karmana and
17. Natural Shocks and Farm Household Behavior: The Consequences of An Earthquake in Pisco, Peru. - Marrit van den Berg and Ricardo Fort.
18. Adaptation to Climate Change and Risk Exposure: Insights from Smallholder Wheat Farmers in China. – Wanglin Ma, Hongyun Zheng and Puneet Vatsa.
19. Cropping System Diversification for Higher Productivity and Resilience of Agriculture: Evidence from India. – Jaweriah Hazrana and Pratap Birthal
20. Extreme Weather Events and Credit Demand. – Puneet Vatsa, Wanglin Ma, Hui Mao and Xiaheng Zhang.
21. How Beliefs about Climate Change Adapt: A Natural Experiment with Evidence on Excess Sensitivity to a Weather Event. - Seo Woo Lee, Hongli Feng and David A. Hennessy.