Factors that Influence Farmer’s Behavior Towards Risk

Abstract

The research was carried out with the aim to find out the behavior of farmers towards risk and the factors that influence it. The research sample was 100 paddy farmers in flood-prone area paddy fields in Pangandaran District, West Java Province, Indonesia. Farmer’s behavior towards risk was analyzed using quadratic utility functions, while the factors that influence farmer’s behavior towards risk were analyzed using logistic regression. The results showed farmers 87 was risk neutral, while 13 farmer risk takers were farmers. Education, familys size and income significantly influence farmer’s behavior towards risk; while age, experience, land area, production risk, price risk, income risk and group did not significantly influence farmer’s behavior towards risk.

Korelasi Tingkat Penghindaran Risiko Dengan Economic Wellbeing Petani Padi

“…Dengan demikian dapat diartikan bahwa peningkatan pendapatan akan diikuti oleh peningkatan nilai RAL yang berarti tingkat penghindaran risikonya berkurang. Sehingga dapat dikatakan petani dengan pendapatan yang lebih tinggi cenderung untuk berani mengambil risiko [17]. Petani dengan pendapatan yang lebih tinggi cenderung memiliki kondisi finansial yang lebih stabil, sehingga mempengaruhi rasa aman mereka dalam mengambil risiko demi pengembalian hasil yang lebih tinggi [18], [19].…”