Extension Educators' Supply of Risk Management Training to Farmers

This paper primary objective is to analyze the supply of risk management education provided by extension educators to their clients. A survey of county/area extension educators from Mississippi, Texas, Indiana, and Nebraska was conducted during the fall of 2001. A Tobit econometric model was constructed to analyze the extension educators’ supply of risk management training to farmers. Results showed that the number of risk management education training programs held in the past 3 years by extension educators was positively related to the extension educators’ percent of time devoted to agricultural responsibilities, the value of all crops in the extension educator’s county/area, the extension educator’s previous training on risk management, whether the extension educators held an advanced degree (master or PhD), whether the extension educators perceived themselves as being knowledgeable in risk management techniques, and whether extension educators believe that forward contracts and futures/options strategies result in increased returns for the farmer than selling in the cash market. On the other hand, the number of risk management education training programs held in the past 3 years by extension educators was negatively related to the extension educators’ years of experience, whether the extension educators work in Mississippi, the dollar amount of the value of all livestock in the extension educator’s county/area, and whether the extension educators perceived farmers as being knowledgeable in risk management techniques.