Impact of risk attitudes on income level among farmers in Digos City, Davao del Sur / Gloriline Deximo; Roxanne T. Aguinaldo, adviser

By: Contributor(s): Material type: TextTextLanguage: English Publication details: 2019Description: 56 leavesSubject(s): Dissertation note: Thesis (BS Agribusiness Economics) -- University of the Philippines Mindanao, May 2019 Abstract: Risk is the possibility of losing the original investment without seeing them multiply. In agriculture, it can be found in weather changes, yield, and outcomes that affect farmer's overall welfare. In this study, farmers? reaction to risks vary and it has two classifications: risk-preferring or risk averse, these are risk attitudes. The purpose of this research is to analyze the impact of farmer's risk attitudes on the income level of farmers in Barangay Binaton and Kapatagan, Digos City. The data were analyzed using Descriptive Statistics, Risk Behavioral Model (Safety-first Principle), Ordinary Least Squares, Analyzing Sources of Risk, Personal Interview of the farmers in the area. The model reveals that farm size and risk index affect the income level of farmers by 1% number of children and non-farm income significantly affects the income level by 5%; and in terms of location, the geographic characteristics and the economy of Binaton and Kapatagan reasonably justifies 19% significance in the result. Out of the 82 farmers, 71 (87.80%) are risk averse, while 10 farmers (12.20%) have propensity of risk. The top three reasons on the types of risk that mostly concern farmers are Pest, Lack of Capital and Price Fluctuation. Farmers who have higher propensity for risk tends to also have higher income. The step-wise analyses in addition to the regression results used in estimating the correlation of risk attitude and income level of farmers indicates that: income level has a huge determinant if a farmer will continue farming or not. High degree of risk aversion is a call for change in terms of farmers? attitude. Thus, it can be said that risk attitude is directly proportional to income level.
List(s) this item appears in: BS Agribusiness Economics
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Thesis Thesis University Library Archives and Records Preservation Copy LG 993.5 2019 A3 D49 (Browse shelf(Opens below)) Not For Loan 3UPML00038175

Thesis (BS Agribusiness Economics) -- University of the Philippines Mindanao, May 2019

Risk is the possibility of losing the original investment without seeing them multiply. In agriculture, it can be found in weather changes, yield, and outcomes that affect farmer's overall welfare. In this study, farmers? reaction to risks vary and it has two classifications: risk-preferring or risk averse, these are risk attitudes. The purpose of this research is to analyze the impact of farmer's risk attitudes on the income level of farmers in Barangay Binaton and Kapatagan, Digos City. The data were analyzed using Descriptive Statistics, Risk Behavioral Model (Safety-first Principle), Ordinary Least Squares, Analyzing Sources of Risk, Personal Interview of the farmers in the area. The model reveals that farm size and risk index affect the income level of farmers by 1% number of children and non-farm income significantly affects the income level by 5%; and in terms of location, the geographic characteristics and the economy of Binaton and Kapatagan reasonably justifies 19% significance in the result. Out of the 82 farmers, 71 (87.80%) are risk averse, while 10 farmers (12.20%) have propensity of risk. The top three reasons on the types of risk that mostly concern farmers are Pest, Lack of Capital and Price Fluctuation. Farmers who have higher propensity for risk tends to also have higher income. The step-wise analyses in addition to the regression results used in estimating the correlation of risk attitude and income level of farmers indicates that: income level has a huge determinant if a farmer will continue farming or not. High degree of risk aversion is a call for change in terms of farmers? attitude. Thus, it can be said that risk attitude is directly proportional to income level.

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