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Sources And Management Of Risk: Evidence From Leading Cornbelt Farmers In The Usa

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  • Ortmann, G. F.
  • Patrick, G. F.
  • Musser, W. N.
  • Doster, D. H.

Abstract

Leading Cornbelt farmers in the USA were surveyed on their sources of and responses to risk in farm production, marketing and finance. Variability in crop prices and yields were regarded as the main sources of risk. The main production responses to risk included timely use of machinery and low-cost production, while forward contracting and participation in government farm programmes were the most important marketing responses. Important financial responses included liability insurance, debt/leverage management and maintaining financial reserves. Respondents expressed a need for more information on risk management.

Suggested Citation

  • Ortmann, G. F. & Patrick, G. F. & Musser, W. N. & Doster, D. H., 1992. "Sources And Management Of Risk: Evidence From Leading Cornbelt Farmers In The Usa," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 31(4), December.
    • Handle: RePEc:ags:agreko:267540
    DOI: 10.22004/ag.econ.267540
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    References listed on IDEAS

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    1. Hans P. Binswanger, 1980. "Attitudes Toward Risk: Experimental Measurement in Rural India," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 62(3), pages 395-407.
    2. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    3. Barnard, Freddie L., 1991. "Results of the Indiana Farm Finance Survey for 1991," Purdue Agricultural Economics Report 188829, Purdue University, Department of Agricultural Economics.
    4. Bond, Gary E. & Wonder, Bernard, 1980. "Risk Attitudes Amongst Australian Farmers," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 24(1), pages 1-19, April.
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    6. Peter B. R. Hazell, 1982. "Application of Risk Preference Estimates in Firm-Household and Agricultural Sector Models," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 64(2), pages 384-390.
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    1. Swanepoel, V. & Ortmann, G. F., 1993. "Sources And Management Of Risk In Extensive Livestock Farming In The North-Western Transvaal Bush Yelp," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 32(4), December.
    2. Wencong Lu & Abdul Latif & Raza Ullah, 2017. "Simultaneous adoption of contract farming and off-farm diversification for managing agricultural risks: the case of flue-cured Virginia tobacco in Pakistan," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 86(3), pages 1347-1361, April.
    3. Bullock, W. I. & Ortmann, G. F. & Levin, J. B., 1994. "Farmer Characteristics, Risk Sources And Managerial Responses To Risk In Vegetable Farming: Evidence From Large- And Small-Scale Commercial Vegetable Farmers In Kwazulu-Natal," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 33(3), September.
    4. Meiring, J. A. & Oosthuizen, L. K., 1995. "Risiko-Bronne En Gepaardgaande Bestuursoptrede: Persepsies Van Besproeiingsboere Benede Die P.K. Le Rouxdam," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 34(1), March.
    5. Stockil, R.C. & Ortmann, Gerald F., 1997. "Perceptions Of Risk Among Commercial Farmers In Kwazulu-Natal In A Changing Economic Environment," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 36(2), pages 1-21, June.

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