IDEAS home Printed from https://ideas.repec.org/p/sek/iacpro/2704628.html
   My bibliography  Save this paper

Risk Management Strategies Adoption Of Farming Households In Kwara State Of Nigeria: A Pragmatic Approach

Author

Listed:
  • OLAWUYI SEYI

    (Ladoke Akintola University of Technology)

  • OLAWUYI TOSIN

    (Ladoke Akintola University of Technology)

Abstract

Risk is an unavoidable element in the business of agriculture especially with the prevalent issue of climate change which hitherto affects production. Production can vary widely from year to year due to unforeseen weather and market conditions, causing wide swings in commodity prices. But risk, while inevitable, is often manageable. Risk management involves choosing among alternatives for reducing risks that threaten the economic success of production process and well-being of the households; hence, determinants of risk management strategies adoption among farming households in Kwara State of Nigeria was investigated. Multistage sampling technique was used to select 122 farming households used for the study. Data collected through a well-structured questionnaire was analyzed through descriptive statistics such as frequency counts, percentages and mean values while inferential statistics such as Tobit regression was used to test the formulated hypothesis. The result revealed a mean age of 49.25 years while the average household size was estimated at approximately 12 persons; also, the average years of formal education was estimated at 6.31 years. 92.62% of the respondents engaged primarily in farming while majority are faced with production risks. The prevalent risk management strategies adopted are: obtaining credit facilities from social organizations, irrigation practices, borrowing from friends, use of family labour and distress sales of assets. And, determinants of risk management strategies adoption are: years of formal education (p

Suggested Citation

  • Olawuyi Seyi & Olawuyi Tosin, 2015. "Risk Management Strategies Adoption Of Farming Households In Kwara State Of Nigeria: A Pragmatic Approach," Proceedings of International Academic Conferences 2704628, International Institute of Social and Economic Sciences.
    • Handle: RePEc:sek:iacpro:2704628
    as

    Download full text from publisher

    File URL: https://iises.net/proceedings/18th-international-academic-conference-london/table-of-content/detail?cid=27&iid=111&rid=4628
    File Function: First version, 2015
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Reardon, Thomas, 1997. "Using evidence of household income diversification to inform study of the rural nonfarm labor market in Africa," World Development, Elsevier, vol. 25(5), pages 735-747, May.
    2. Capitanio, Fabian, 2008. "Risk Management Through Insurance And Environmental Externalities From Agricultural Input Use: An Italian Case Study," 109th Seminar, November 20-21, 2008, Viterbo, Italy 44834, European Association of Agricultural Economists.
    3. Besley, Timothy, 1995. "Savings, credit and insurance," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 3, chapter 36, pages 2123-2207, Elsevier.
    4. Frank Ellis, 1998. "Household strategies and rural livelihood diversification," Journal of Development Studies, Taylor & Francis Journals, vol. 35(1), pages 1-38.
    5. Harwood, Joy L. & Heifner, Richard G. & Coble, Keith H. & Perry, Janet E. & Somwaru, Agapi, 1999. "Managing Risk in Farming: Concepts, Research, and Analysis," Agricultural Economic Reports 34081, United States Department of Agriculture, Economic Research Service.
    6. Rose A. Nyikal & Willis O. Kosura, 2005. "Risk preference and optimal enterprise combinations in Kahuro division of Murang'a district, Kenya," Agricultural Economics, International Association of Agricultural Economists, vol. 32(2), pages 131-140, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Korir, Luke Kipkurgat, 2011. "Risk Management Among Agricultural Households And The Role Of Off-Farm Investments In Uasin Gishu County, Kenya," Research Theses 117806, Collaborative Masters Program in Agricultural and Applied Economics.
    2. Waweru, Caroline Waithira & Nyikal, Rose & Busienei, John R, 2017. "An Analysis Of Risk Attitudes And Risk Management Strategies Among Dairy Farmers In Murang’A County, Kenya," Dissertations and Theses 271063, University of Nairobi, Department of Agricultural Economics.
    3. Waithira, Waweru Caroline, 2017. "An Analysis Of Risk Attitudes And Risk Management Strategies Among Dairy Farmers In Murang’A County, Kenya," Research Theses 276428, Collaborative Masters Program in Agricultural and Applied Economics.
    4. Christiaensen, Luc J.M. & Boisvert, Richard N., 2000. "On Measuring Household Food Vulnerability: Case Evidence from Northern Mali," Working Papers 127676, Cornell University, Department of Applied Economics and Management.
    5. Mukasa Adamon N. & Anthony M. Simpasa & Adeleke Oluwole Salami, 2017. "Working Paper 247 - Credit constraints and farm productivity: Micro-level evidence from smallholder farmers in Ethiopia," Working Paper Series 2356, African Development Bank.
    6. Anderson, Jock R., 2003. "Risk in rural development: challenges for managers and policy makers," Agricultural Systems, Elsevier, vol. 75(2-3), pages 161-197.
    7. Kamaldeen Mohammed & Evans Batung & Moses Kansanga & Hanson Nyantakyi-Frimpong & Isaac Luginaah, 2021. "Livelihood diversification strategies and resilience to climate change in semi-arid northern Ghana," Climatic Change, Springer, vol. 164(3), pages 1-23, February.
    8. Maja Micevska & Dil Bahadur Rahut, 2008. "Rural Nonfarm Employment and Incomes in the Himalayas," Economic Development and Cultural Change, University of Chicago Press, vol. 57(1), pages 163-193, October.
    9. Yunez-Naude, Antonio & Edward Taylor, J., 2001. "The Determinants of Nonfarm Activities and Incomes of Rural Households in Mexico, with Emphasis on Education," World Development, Elsevier, vol. 29(3), pages 561-572, March.
    10. Nguyen, Huy, 2014. "The effect of land fragmentation on labor allocation and the economic diversity of farm households: The case of Vietnam," MPRA Paper 57521, University Library of Munich, Germany.
    11. Maria Mwaipopo Fibaek, 2021. "Working Poor? A Study of Rural Workers' Economic Welfare in Kenya," Journal of International Development, John Wiley & Sons, Ltd., vol. 33(1), pages 41-69, January.
    12. Ralitza Dimova & Sandra Kristine Halvorsen & Milla Nyyssölä & Kunal Sen, 2021. "Long-run rural livelihood diversification in Kagera, Tanzania," WIDER Working Paper Series wp-2021-9, World Institute for Development Economic Research (UNU-WIDER).
    13. Baumgartner, Philipp & von Braun, Joachim & Abebaw, Degnet & Müller, Marc, 2015. "Impacts of Large-scale Land Investments on Income, Prices, and Employment: Empirical Analyses in Ethiopia," World Development, Elsevier, vol. 72(C), pages 175-190.
    14. Mark Musumba & Cheryl A. Palm & Adam M. Komarek & Patrick K. Mutuo & Bocary Kaya, 2022. "Household livelihood diversification in rural Africa," Agricultural Economics, International Association of Agricultural Economists, vol. 53(2), pages 246-256, March.
    15. Riithi, Alexander Njuguna & Irungu, Patrick & Munei , Kimpei, 2015. "Determinants Of Choice Of Alternative Livelihood Diversification Strategies In Solio Resettlement Scheme, Kenya," Dissertations and Theses 269714, University of Nairobi, Department of Agricultural Economics.
    16. Vellema, W. & Buritica Casanova, A. & Gonzalez, C. & D’Haese, M., 2015. "The effect of specialty coffee certification on household livelihood strategies and specialisation," Food Policy, Elsevier, vol. 57(C), pages 13-25.
    17. repec:dgr:rugcds:cds-27 is not listed on IDEAS
    18. Amit Kundu & Sangita Das, 2022. "Occupational Diversification as Livelihood Strategy Among the Agricultural Labour Households of West Bengal, India," Management and Labour Studies, XLRI Jamshedpur, School of Business Management & Human Resources, vol. 47(1), pages 40-58, February.
    19. Asfaw, Solomon & Scognamillo, Antonio & Caprera, Gloria Di & Sitko, Nicholas & Ignaciuk, Adriana, 2019. "Heterogeneous impact of livelihood diversification on household welfare: Cross-country evidence from Sub-Saharan Africa," World Development, Elsevier, vol. 117(C), pages 278-295.
    20. Khan, Rumman & Morrissey, Oliver, 2023. "Income diversification and household welfare in Uganda 1992–2012," Food Policy, Elsevier, vol. 116(C).
    21. Koirala, Krishna H. & Mishra, Ashok K. & Mehlhorn, Joey, 2014. "Using Copula to Test Dependency between Energy and Agricultural Commodities," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170364, Agricultural and Applied Economics Association.

    More about this item

    Keywords

    Risk Management Strategies; Adoption; Farming Households; Tobit; Nigeria;
    All these keywords.

    JEL classification:

    • A12 - General Economics and Teaching - - General Economics - - - Relation of Economics to Other Disciplines

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sek:iacpro:2704628. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Klara Cermakova (email available below). General contact details of provider: https://iises.net/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.