Figure 1
Conceptual Framework.
Figure 2
Map of Study Area.
Figure 3
Risk Matrix.
Table 1
Example of Elicitation of Certainty Equivalents and Computation of Utility Values.
| Step | Elicited CE | Utility Calculation |
|---|---|---|
| Scale | U(0) = 0 and U(50,000) = 1 | |
| 1 | (26,000; 1.0) ~ (0, 50,000; 0.5, 0.5) | U(26,000) = 0.5u(0) + 0.5u(50,000) = 0.5 |
| 2 | (12,000; 1.0) ~ (0, 26,000; 0.5, 0.5) | U(12,000) = 0.5u(0) + 0.5u(26,000) = 0.25 |
| 3 | (5,000; 1.0) ~ (0, 12,000; 0.5, 0.5) | U(5,000) = 0.5u(0) + 0.5u(12,000) = 0.125 |
| 4 | (2,000; 1.0) ~ (0, 5,000; 0.5, 0.5) | U(2,000) = 0.5u(0) + 0.5u(5,000) = 0.0625 |
| 5 | (36,000; 1.0) ~ (50,000, 26,000; 0.5, 0.5) | U(36,000) = 0.5u(50,000) + 0.5u(26,000) = 0.75 |
| 6 | (42,000; 1.0) ~ (50,000, 36,000; 0.5, 0.5) | U(42,000) = 0.5u(50,000) + 0.5u(36,000) = 0.875 |
| 7 | (45,000; 1.0) ~ (50,000, 42,000; 0.5, 0.5) | U(45,000) = 0.5u(50,000) + 0.5u(42,000) = 0.937 |
[i] Author’s Calculations.
| ACi | = | Access to credit of ith household |
| ci | = | Amount of credit received by the ith household |
| C | = | Total amount of credit received by all sampled households in the study area |
| li | = | land holding belonging to ith household |
| L | = | Total landholding belonging to all sampled households in the study area |
(7)
Table 2
Adoption of Risk Management Tools by Land Ownership Type.
| Land Ownership Types | Off-farm Diversification | Assets Accumulation | Credit Reserves | Total | ||||
|---|---|---|---|---|---|---|---|---|
| Freq. | % | Freq. | % | Freq. | % | Freq. | % | |
| Owner farmers | 46 | 42.991 | 47 | 43.925 | 60 | 56.075 | 107 | 32.424 |
| Owner-cum-tenant farmers | 41 | 56.944 | 33 | 45.833 | 32 | 44.444 | 72 | 21.818 |
| Tenant farmers | 90 | 59.602 | 52 | 34.437 | 39 | 25.828 | 151 | 45.757 |
| Overall | 177 | 53.636 | 132 | 40 | 131 | 39.697 | ||
[i] Source: Derived from survey data.
Table 3
Farmers’ Risk Perceptions and Risk Attitude by Land Ownership Status.
| Land Ownership Types | Risk Perceptions | Risk Attitude | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Risk of Floods | Risk of Heavy Rains | Risk of Pest and Diseases | Risk of Hail Storms | Risk aversion | ||||||
| Freq. | %age | Freq. | %age | Freq. | %age | Freq. | %age | Freq. | %age | |
| Owner Farmers | 69 | 64.49 | 65 | 60.75 | 83 | 77.57 | 24 | 22.43 | 81 | 75.70 |
| Owner-cum-tenant Farmers | 57 | 79.17 | 49 | 68.06 | 52 | 72.22 | 22 | 30.56 | 58 | 80.56 |
| Tenant Farmers | 104 | 68.87 | 115 | 76.16 | 110 | 72.85 | 40 | 26.49 | 124 | 82.12 |
| Total | 230 | 69.70 | 229 | 69.39 | 245 | 74.24 | 86 | 26.06 | 263 | 79.70 |
[i] Source: Derived from survey data.
Table 4
Access to Information and Credit by Land Ownership Status.
| Land Ownership Types | Access to Information | Access to Credit |
|---|---|---|
| Composite Index Score | Credit Access Ratio | |
| Owner Farmers | 0.369 | 0.894 |
| Owner-cum-Tenant Farmers | 0.299 | 0.595 |
| Tenant Farmers | 0.250 | 0.429 |
[i] Source: Derived from survey data.
Table 5
Parameter Estimates of the Logit Models.
| Variables | Off-farm Diversification | Assets Accumulation | Credit Reserves |
|---|---|---|---|
| Coefficients (std. err) | Coefficients (std. err) | Coefficients (std. err) | |
| Land Owner | –1.378*** (0.295) | 0.329 (0.294) | 1.183*** (0.345) |
| Owner-cum-tenants | 1.184*** (0.336) | 0.128 (0.349) | 0.932** (0.412) |
| Perceptions of Floods | –0.462* (0.278) | 0.851*** (0.301) | 0.002 (0.319) |
| Perceptions of Heavy Rains | 0.467* (0.279) | 0.701** (0.297) | 0.961*** (0.346) |
| Perceptions of Pest and Diseases | 0.410 (0.291) | 0.580* (0.306) | 0.252 (0.342) |
| Perceptions of Hail Storms | 1.372*** (0.329) | 1.662*** (0.313) | 2.393*** (0.353) |
| Risk Attitude | 0.827*** (0.317) | 0.517 (0.337) | 0.567 (0.383) |
| Access to information | 0.273 (0.361) | 0.153 (0.365) | 2.119*** (0.475) |
| Access to Credit | –0.004 (0.034) | 0.008 (0.034) | –0.001 (0.037) |
| Regional Dummy | 0.454 (0.278) | 1.104*** (0.299) | 0.219 (0.318) |
| Log likelihood | –194.332 | –185.724 | –155.47 |
| LR Chi Square | 67.07*** | 72.74*** | 132.41*** |
| Pseudo R Square | 0.147 | 0.164 | 0.299 |
[i] Note: Figures in parenthesis are standard errors. ***, **, and * represents significance at 1 percent, 5 percent and 10 percent respectively.