Farmers’ behaviour in risky decision-making
Risk is highlighted as an increasingly present aspect of the agricultural business, and it is important for agricultural producers to manage risk effectively. The implementation of risk management strategies and the adoption of risk management tools are some of the most complex decisions for farmers...
| Main Authors: | , |
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| Format: | Second cycle, A2E |
| Language: | Swedish Inglés |
| Published: |
2018
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| Subjects: | |
| Online Access: | https://stud.epsilon.slu.se/13223/ |
| _version_ | 1855572208694329344 |
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| author | Enström, Martin Eriksson, Johan |
| author_browse | Enström, Martin Eriksson, Johan |
| author_facet | Enström, Martin Eriksson, Johan |
| author_sort | Enström, Martin |
| collection | Epsilon Archive for Student Projects |
| description | Risk is highlighted as an increasingly present aspect of the agricultural business, and it is important for agricultural producers to manage risk effectively. The implementation of risk management strategies and the adoption of risk management tools are some of the most complex decisions for farmers to execute. For Swedish farmers the private crop insurance is one available risk management tool to mitigate production risks caused by unforeseen weather events. Farmers’ decision behaviour in situations that include risk and uncertainty is a reflection of their risk propensity and risk perception. To explain farmers’ adoption of risk management strategies it is important to understand their decision-making behaviour.
Earlier studies of farmers’ risky decision-making behaviour use a quantitative approach to evaluate how the determinants risk propensity and risk perception interplay in farmers’ choice to implement a certain risk management strategy. In this study a qualitative multiple case study approach is applied to evaluate farmers’ decision to purchase crop insurance as a risk management tool. The aim is to investigate underlying factors of risky decision-making behaviour, and their importance for farmers’ decision to purchase a crop insurance.
The results of this study is based on 13 interviews with crop farmers in the region of Scania in the southern part Sweden. The type of interviews that is used are semi-structured interviews that was analysed through thematic coding. The interviews were based on the Sitkin and Pablo (1992) model of decision-making behaviour under risk and uncertainty. This study contributes with knowledge about what underlying factors that are of importance for farmers’ crop insurance decision in the studied context. It also contributes with a suggestion to include the factor of status quo, to describe the farmers’ behaviour in their continued decision to purchase a crop insurance. The results of this study imply that the underlying factors of importance to describe farmers’ behaviour differ depending on if the decision is conducted for the first time, or if it is a repeated decision. |
| format | Second cycle, A2E |
| id | RepoSLU13223 |
| institution | Swedish University of Agricultural Sciences |
| language | Swedish Inglés |
| publishDate | 2018 |
| publishDateSort | 2018 |
| record_format | eprints |
| spelling | RepoSLU132232019-02-25T13:24:02Z https://stud.epsilon.slu.se/13223/ Farmers’ behaviour in risky decision-making Enström, Martin Eriksson, Johan Economics and management Risk is highlighted as an increasingly present aspect of the agricultural business, and it is important for agricultural producers to manage risk effectively. The implementation of risk management strategies and the adoption of risk management tools are some of the most complex decisions for farmers to execute. For Swedish farmers the private crop insurance is one available risk management tool to mitigate production risks caused by unforeseen weather events. Farmers’ decision behaviour in situations that include risk and uncertainty is a reflection of their risk propensity and risk perception. To explain farmers’ adoption of risk management strategies it is important to understand their decision-making behaviour. Earlier studies of farmers’ risky decision-making behaviour use a quantitative approach to evaluate how the determinants risk propensity and risk perception interplay in farmers’ choice to implement a certain risk management strategy. In this study a qualitative multiple case study approach is applied to evaluate farmers’ decision to purchase crop insurance as a risk management tool. The aim is to investigate underlying factors of risky decision-making behaviour, and their importance for farmers’ decision to purchase a crop insurance. The results of this study is based on 13 interviews with crop farmers in the region of Scania in the southern part Sweden. The type of interviews that is used are semi-structured interviews that was analysed through thematic coding. The interviews were based on the Sitkin and Pablo (1992) model of decision-making behaviour under risk and uncertainty. This study contributes with knowledge about what underlying factors that are of importance for farmers’ crop insurance decision in the studied context. It also contributes with a suggestion to include the factor of status quo, to describe the farmers’ behaviour in their continued decision to purchase a crop insurance. The results of this study imply that the underlying factors of importance to describe farmers’ behaviour differ depending on if the decision is conducted for the first time, or if it is a repeated decision. Risk beskrivs som en betydande aspekt inom ett lantbruksföretag och det är viktigt att lantbrukare kan hantera risker på ett effektivt sätt. Implementeringen av strategier och olika typer av riskhanteringsverktyg är några av de mest komplexa beslut en lantbrukare behöver överväga i sin verksamhet. För svenska lantbrukare är den grödaförsäkring som tillhandahålls av privata försäkringsbolag ett tillgängligt riskhanteringsverktyg för att minska produktionsrisker orsakade av oförutsedda väderhändelser. Lantbrukares beteende i beslutssituationer som inkluderar risk och osäkerhet styrs av deras riskbenägenhet och riskuppfattning. För att förklara lantbrukares anammande av strategier och verktyg för att hantera risker är det viktigt att förstå deras beteende i beslutssituationer. I tidigare studier av lantbrukares beteende i beslutssituationer som innefattar risk har en kvantitativ ansats tillämpats för att utvärdera hur determinanterna riskbenägenhet och riskuppfattning interagerar i lantbrukares beslut att implementera riskhanteringsstrategier. I den här studien tillämpas en kvalitativ multipel fallstudie för att utvärdera lantbrukares beslut att införskaffa en grödaförsäkring som ett riskhanteringsverktyg. Målet är att undersöka underliggande faktorer i beslutssituationer som innefattar risk och osäkerhet, samt deras betydelse för beslutet att införskaffa en grödaförsäkring. Resultaten i den här studien baseras på 13 intervjuer med lantbrukare med inriktning mot växtodling i Skåne. Det empiriska materialet har samlats in genom semistrukturerade intervjuer som analyserats genom tematisk kodning. Den intervjuguide som använts utgår ifrån Sitkin och Pablos (1992) modell om beslutsfattarens beteende i beslutssituationer som innefattar risk och osäkerhet. Studien bidrar med kunskap om de underliggande faktorerna som är av betydelse för lantbrukares grödaförsäkringsbeslut inom den kontext som studerats. I studien adderas även den underliggande faktorn ”status quo” för att beskriva lantbrukarnas beteende i det årligen upprepade beslutet att fortsätta införskaffa en grödaförsäkring. Resultaten i den här studien antyder att de underliggande faktorerna av betydelse för att beskriva lantbrukares beteende skiljer sig åt beroende på om beslutet fattas för första gången eller är ett årligen upprepat beslut. 2018-03-27 Second cycle, A2E NonPeerReviewed application/pdf sv https://stud.epsilon.slu.se/13223/1/enstrom_m_eriksson_j_180327.pdf Enström, Martin and Eriksson, Johan, 2018. Farmers’ behaviour in risky decision-making : a multiple case study of farmers’ adoption of crop insurance as a risk management tool. Second cycle, A2E. Uppsala: (NL, NJ) > Dept. of Economics <https://stud.epsilon.slu.se/view/divisions/OID-510.html> urn:nbn:se:slu:epsilon-s-9324 eng |
| spellingShingle | Economics and management Enström, Martin Eriksson, Johan Farmers’ behaviour in risky decision-making |
| title | Farmers’ behaviour in risky decision-making |
| title_full | Farmers’ behaviour in risky decision-making |
| title_fullStr | Farmers’ behaviour in risky decision-making |
| title_full_unstemmed | Farmers’ behaviour in risky decision-making |
| title_short | Farmers’ behaviour in risky decision-making |
| title_sort | farmers’ behaviour in risky decision-making |
| topic | Economics and management |
| url | https://stud.epsilon.slu.se/13223/ https://stud.epsilon.slu.se/13223/ |