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

Author

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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

    as
    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. repec:ags:inpuer:188829 is not listed on IDEAS
    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(01), pages 1-19, April.
    5. Gary E. Bond & Bernard Wonder, 1980. "Risk Attitudes Amongst Australian Farmers," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 24(1), pages 16-34, April.
    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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    Cited by:

    1. 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.
    2. Ortmann, Gerald & Woodburn, Michael & Levin, Jonathan, 1995. "Dimensions of Risk and Managerial Responses to Risk on Commercial Farms in Kwazulu-Natal, South Africa," 10th Congress, The University of Reading, UK, July 10-15, 1995 346316, International Farm Management Association.
    3. 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(01), March.
    4. 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.
    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.
    6. 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.

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