African Journal of
Business Management

  • Abbreviation: Afr. J. Bus. Manage.
  • Language: English
  • ISSN: 1993-8233
  • DOI: 10.5897/AJBM
  • Start Year: 2007
  • Published Articles: 4083

Full Length Research Paper

Risk attitudes and management strategies of small –scale crop producer in Kwara State, Nigeria: A ranking approach

  O. E. Ayinde*, O. A. Omotesho and M. O. Adewumi  
Department of Agricultural Economics and Farm Management, University of Ilorin, P.M.B.1515, Ilorin, Nigeria.
Email: [email protected]

  • Article Number - B4EC56A17429
  • Vol.2(12), pp. 217-221 , December 2008
  •  Accepted: 28 November 2008
  •  Published: 31 December 2008

Abstract

 

The risk attitude of small-scale crop producers in kwara State, Nigeria was examined. The study ranked the risk preference and management strategies of small-scale crop producer in the study area. A three – stage stratified random sampling was used to draw a sample of 250 crop producers from the four agro-ecological zones in Kwara State. Well structured questionnaires were used to obtain information from selected crop producers. Descriptive analysis, Paired Comparison Method and Least Significance Difference were used to analysis the data. The results show that farming households in the study area placed different preference on the risk attitude namely risk taking, risk neutral and risk averse. The households mostly employed crop diversification and least employed insurance as their risk management strategy.  To this end, programmes and policies for small scale farmers should incorporate their risk preference for the possibility of producing the desired effect and improve the efficiency of crop management and production.

 

Key words: Risk attitude, management strategy, households, rank, Kwara.