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Measuring risk attitude of agricultural producers using a mail survey: how consistent are the methods?

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  • Fausti, Scott W.
  • Gillespie, Jeffrey M.

Abstract

A mail survey is used to examine the consistency of alternative risk preference elicitation procedures using five commonly used methods. These elicitation procedures have been used in previous studies to characterise risk preference. Results show little consistency across procedures, supporting strength-of-preference studies. A general recommendation for mail surveys is the development of relatively easy-to-understand risk-preference elicitation procedures that are framed according to the situational construct in question.

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  • Fausti, Scott W. & Gillespie, Jeffrey M., 2006. "Measuring risk attitude of agricultural producers using a mail survey: how consistent are the methods?," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 50(2), pages 1-18, June.
    • Handle: RePEc:ags:aareaj:116927
    DOI: 10.22004/ag.econ.116927
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    1. Giovanopoulou, Eirini & Nastis, Stefanos A. & Papanagiotou, Evagelos, 2011. "Modeling farmer participation in agri-environmental nitrate pollution reducing schemes," Ecological Economics, Elsevier, vol. 70(11), pages 2175-2180, September.
    2. Williams, Brian R. & DeVuyst, Eric A. & Peel, Derrell S. & Raper, Kellie Curry, 2014. "The Likelihood of Positive Returns from Value-Added Calf Management Practices," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 46(1), pages 125-138, February.
    3. Maart-Noelck, Syster C. & Musshoff, Oliver, 2014. "Measuring the risk attitude of decision-makers: are there differences between groups of methods and persons?," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 58(3), July.
    4. Greiner, Romy & Miller, Owen & Patterson, Louisa, 2008. "The role of grazier motivations and risk attitudes in the adoption of grazing best management practices," 2008 Conference (52nd), February 5-8, 2008, Canberra, Australia 6002, Australian Agricultural and Resource Economics Society.
    5. Nadezda JANKELOVA & Dusan MASAR & Stefania MORICOVA, 2017. "Risk factors in the agriculture sector," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 63(6), pages 247-258.
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    7. Jason R.V. Franken & Joost M.E. Pennings & Philip Garcia, 2014. "Measuring the effect of risk attitude on marketing behavior," Agricultural Economics, International Association of Agricultural Economists, vol. 45(5), pages 525-535, September.
    8. Pope, Kelsey Frasier & Schroeder, Ted C. & Langemeier, Michael R. & Herbel, Kevin L., 2011. "Cow-Calf Producer Risk Preference Impacts on Retained Ownership Strategies," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 43(4), pages 497-513, November.
    9. Sulewski, Piotr & Kłoczko-Gajewska, Anna, 2014. "Farmers’ risk perception, risk aversion and strategies to cope with production risk: an empirical study from Poland," Studies in Agricultural Economics, Research Institute for Agricultural Economics, vol. 116(3), pages 1-8, December.
    10. Greiner, Romy & Patterson, Louisa & Miller, Owen, 2009. "Motivations, risk perceptions and adoption of conservation practices by farmers," Agricultural Systems, Elsevier, vol. 99(2-3), pages 86-104, February.
    11. Ding, Xiaohao & Hartog, Joop & Sun, Yuze, 2010. "Can We Measure Individual Risk Attitudes in a Survey?," IZA Discussion Papers 4807, Institute of Labor Economics (IZA).
    12. Belhenniche, Geoffroy & Duvaleix-Treguer, Sabine & Cordier, Jean, 2009. "Milk Farmers' Risk Attitudes: Influence of the Dairy Processing Company," 2009 International European Forum, February 15-20, 2009, Innsbruck-Igls, Austria 58711, International European Forum on System Dynamics and Innovation in Food Networks.
    13. Nyaupane, Narayan P. & Gillespie, Jeffrey M., 2009. "The Influences Of Land Tenancy And Rotation Selection On Crawfish Farmers’ Adoption Of Best Management Practices," 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia 46174, Southern Agricultural Economics Association.
    14. Rosch, Stephanie D., 2017. "Risk Attitudes of US Agricultural Producers," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258025, Agricultural and Applied Economics Association.
    15. Boaitey, Albert & Goddard, Ellen & Mohapatra, Sandeep & Hailu, Getu, 2014. "Cow-Calf Producer Risk Preference Impacts On Willingness To Pay For Sustainable Breeding Practices," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170231, Agricultural and Applied Economics Association.
    16. Robert Finger & David Wüpper & Chloe McCallum, 2023. "The (in)stability of farmer risk preferences," Journal of Agricultural Economics, Wiley Blackwell, vol. 74(1), pages 155-167, February.
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    18. Howard, Gregory E. & Roe, Brian E., 2011. "Comparing the Risk Attitudes of U.S. and German Farmers," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114528, European Association of Agricultural Economists.
    19. Williams, John & Malcolm, Bill, 2012. "Farmer decisions about selling wheat and managing wheat price risk in Australia," Australasian Agribusiness Review, University of Melbourne, Department of Agriculture and Food Systems, vol. 20, pages 1-10.
    20. Franken, Jason R.V. & Pennings, Joost M.E. & Garcia, Philip, 2012. "Measuring Risk Attitude and Relation to Marketing Behavior," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124471, Agricultural and Applied Economics Association.
    21. Christopher G. Davis & Jeffrey M. Gillespie, 2007. "Factors Affecting the Selection of Business Arrangements by U.S. Hog Farmers," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 29(2), pages 331-348.
    22. Grove, Bennie & Oosthuizen, Lukas Klopper, 2010. "Stochastic efficiency analysis of deficit irrigation with standard risk aversion," Agricultural Water Management, Elsevier, vol. 97(6), pages 792-800, June.

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