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Evaluation Factors Affecting of Risk Production in Sistan Grape Growers by using Stochastic Frontier Approach

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  • Dahmardeh, Nazar
  • Shahraki, Ali Sardar

Abstract

Due to agriculture is a risky activity and risk models is important in order to analyze the behavior of farmers, hence, in this study, the factors affecting risk-taking and risk aversion is the region grape growers. Data analysis was performed by using stochastic frontier. Data gathered by questionnaires at three counties of Zabol, Hirmand and Zahak at 265 grape farmers in crop year of 2011-2012. The results showed that the cultivated area respectively for the county of Zabol and Zahak risk–reducing and risk-increases, labor Rental at Zabol county risks - reducing and animal manure for the county of Hirmand and Zahak was risk - Reducing respectively. Therefore, the positive and significant labor input on risk factor is production as a result of seasonality, It is suggested that the focus on seasonal labor and employment Rental through agencies or through the representatives of the Ministry of Labor and Social Affair.

Suggested Citation

  • Dahmardeh, Nazar & Shahraki, Ali Sardar, 2015. "Evaluation Factors Affecting of Risk Production in Sistan Grape Growers by using Stochastic Frontier Approach," International Journal of Agricultural Management and Development (IJAMAD), Iranian Association of Agricultural Economics, vol. 5(1), March.
    • Handle: RePEc:ags:ijamad:262495
    DOI: 10.22004/ag.econ.262495
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    References listed on IDEAS

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    1. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
    2. Villano, Renato A. & O'Donnell, Christopher J. & Battese, George E., 2005. "An Investigation of Production Risk, Risk Preferences and Technical Efficiency: Evidence From Rainfed Lowland Rice Farms in the Philippines," Working Papers 12953, University of New England, School of Economics.
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