This study was conducted to explore organic and conventional dairy farmers' perceptions of risk and risk management, and to examine relationships between farm and farmer characteristics, risk perceptions, and strategies. The data originate from a survey of conventional (n = 363) and organic (n = 162) dairy farmers in Norway. Organic farmers had the least risk averse perceptions. Institutional and production risks were perceived as primary sources of risk, with farm support payments at the top. Compared to their conventional colleagues, organic farmers gave more weight to institutional factors related to their production systems. Conventional farmers were more concerned about costs of purchased inputs and animal welfare policy. Organic and conventional farmers' management responses were more similar than their risk perceptions. Financial measures such as liquidity and costs of production, disease prevention, and insurance were perceived as important ways to handle risk. Even though perceptions were highly farmer-specific, a number of socio-economic variables were found to be related to risk and risk management. The primary role of institutional risks implies that policy makers should be cautious about changing policy capriciously and they should consider the scope for strategic policy initiatives that give farmers some greater confidence about the longer term. Further, researchers should pay more attention to institutional risks.
-Environmental, social and economic attributes are important for the sustainability of a farming system. Comparing farming systems by considering only expected profitability ignores differences in both sustainability and in the riskiness of system returns. Further, in choosing between farming systems, the ability to survive various risks and shocks and continue in the future is important, i.e., system resilience and persistence are important aspects of sustainability. Yet resilience and persistence have seldom been directly considered in evaluations of economic sustainability. A whole-farm stochastic simulation model over a six-year planning horizon was used to compare organic and conventional cropping systems for a representative farm situation in Eastern Norway. The relative sustainability of alternative systems under changing assumptions about future technology and price regimes was examined in terms of terminal financial position. The risk efficiency of the same alternatives was also compared. The results illustrate possible conflicts between pursuit of risk efficiency versus sustainability. The model used could be useful in supporting farmers' choice between farming systems as well for policy makers to develop more sharply targeted policies.
Conventional farmers converting to organics have contributed to most of the rapid expansion of organic farming in recent years. The new organic farmers may differ from their more established colleagues, which may have implications for the development of the organic farming sector and its distinctiveness vis-à-vis conventional production and marketing practices. The aim of this study was to explore Norwegian organic dairy farmers' personal and farm production characteristics, farming goals, conversion motives, and attitudes to organic farming, grouped by year of conversion (three groups). A postal survey was undertaken among organic dairy farmers (n = 161). The results show that the newcomers (converted in 2000 or later) were less educated than the early entrants (the so-called 'old guard') who converted in 1995 or earlier. The frequency of activities like vegetable growing and poultry farming among the old guard was high. The late-entry organic herds were fed with more concentrates and had a higher milk production intensity, showed a higher incidence of veterinary treatments and less frequent use of alternative medicine than the herds of the two earlier converting groups. For all groups of farmers, the highest ranked farming goals were sustainable and environment-friendly farming and the production of high-quality food. Late entrants more often mentioned goals related to profit and leisure time. On average, the most frequently mentioned motives for conversion were food quality and professional challenges. The old guard was more strongly motivated by food quality and soil fertility/pollution issues than the others, whereas financial reasons (organic payments included) were relatively more important among the newcomers. All groups held very favorable views about the environmental qualities of organic farming methods, albeit with different strengths of beliefs. Even though trends towards more pragmatic and business-oriented farming were found, the majority of the newcomers were fairly committed.
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