Effects of Risk Attitude on The Technical Efficiency of Small-Holder Rice Farmers in Ogun State, Nigeria

• Autorzy: Chima Adebare Obinka , Carolyn Afolake Afolami , Dare Akerele
• Języki publikacji: EN

Abstrakty

EN

The growth and development of the agricultural sector in developing countries is largely dependent on technological enhancements, because merely expanding the area of farm cultivation is no longer sufficient to meet the increasing food needs of growing populations. This study examined the effects of risk attitudes on the technical efficiency of small-holder rice farmers in Ogun State, Nigeria. Primary data were collected for the study using a multi-stage sampling technique, and 180 rice farmers were selected from the study area. The data were analyzed with descriptive statistics, stochastic frontier analysis and a simple lottery-choice experiment. The findings revealed that 36.1% of the farmers were between the ages of 31 and 40. Farmers who were 41 years and over were seen to be more risk averse than their younger counterparts. In this age group, 76.66% of rice farmers were risk averse, while 23.34% were risk tolerant. The result of the maximum likelihood estimate (MLE) of the parameters of the stochastic frontier analysis revealed that farm size positively and signifi-cantly influenced rice output (β = 0.16, p < 0.1), as did quantity of seed (β = 0.74, p < 0.01) and use of chemicals (β = 0.26, p < 0.01). Years of farming had a negative effect on technical efficiency (β = 0.64, p < 0.01), as did severe risk aversion (β = 0.57, p < 0.1). The study concludes that small-holder farmers are generally risk averse, negatively influencing technical efficiency in the study area. The study recommends that the design of government programs should incorporate farmers' risk attitudes as an important variable.(original abstract)

Słowa kluczowe

EN

Risk; Agriculture; Developing countries

PL

Ryzyko; Rolnictwo; Kraje rozwijające się

• Czasopismo: Journal of Agribusiness and Rural Development
• Rocznik: 2023
• Numer: z. 3 (69)
• Strony: 341--351

Twórcy

autor

Chima Adebare Obinka

• Federal University of Agriculture, Nigeria

autor

Carolyn Afolake Afolami

• Federal University of Agriculture, Nigeria

autor

Dare Akerele

• Federal University of Agriculture, Nigeria

Bibliografia

• Afolami, C.A. (2002). An empirical analysis of variety price premium, spatial and temporal pricing patterns for Cowpeas in Ogun State, Nigeria. African Crop Science Journal, 10(3), 263-270. Retrieved from: https://www.ajol.info/index.php/acsj/article/view/27542
• Akongo, G.O., Gombya-Ssembajjwe, W., Buyinza, M. Bua, A. (2016). Effects of climate and conflict on technical efficiency of rice production, Northern Uganda. J. Econ. Sustain. Dev., 7(11), 122-134. Retrieved from: http://dspace.mak.ac.ug/bitstream/handle/10570/5783/Akongo- Buyinza-caes-res.pdf?sequence=1&isAllowed=y
• Al-hassan, S. (2008). Technical efficiency of rice farmers in Northern Ghana. African Economic Research Consortium (AERC) Research Paper 178, Nairobi. https://africaportal. org/publication/technical-efficiency-of-rice-farmers-in- northern-ghana/
• Allias, M. (1984). The foundations of the theory of utility and risk. In: O. Hargen, F. Wenstrop (Eds.), Progress in Utility and Risk Theory (p. 3-131). Dordrecht: Reidel.
• Anderson, J.R., Dillon, J.L. Hardaker, J.D. (1977). Agricultural decision analysis. Ames, Iowa State University Press, 344.
• Ayinde, O.A., Omotesho, A.O., Adewumi, M.O. (2008). Attitude to risks and management strategies of small-scale crop producers in Kwara State, Nigeria: A Ranking Approach. Afr. J. Bus. Manag., 2(12), 217-221. Retrieved from: https://www.researchgate.net/publication/228429479_Risk_attitudes_and_management_strategies_of_smallscale_crop_producer_in_Kwara_State_Nigeria_A_ranking_approach
• Babatunde, O.T., Raphael, O., Qaim, M. (2010). Impact of off-farm income on food security and nutrition in Nigeria. Contributed paper for the 3rd conference of Africa association of Agricultural Economists, "Africa and the Global Food and Financial Crises", Cape Town, South Africa (19-23 September 2010). retrieved from: https:// econpapers.repec.org/paper/agsaaae10/97332.htm
• Bard, S.K., Berry, P.J. (2000). Developing a scale for assessing attitude to risks of agricultural decision maker. Int. Food Agribus. Manag. Rev., 3(1), 9-25. https://doi.org/10.1016/S1096-7508(00)00024-0
• Battese, G.E., Coelli, T.J. (1995). A model for technical inefficiency effect in a stochastic frontier production function for panel data. Empir. Econ., 20, 325-332. Retrieved from: https://link.springer.com/article/10.1007/BF01205442
• Binam, J.N., Njankouawandji, J.T., Nyambi, G., Akoa, M. (2004). Factors affecting the technical efficiency among small-holder farmers in the slash and burn agriculture zone of Cameroon. J. Food Pol., 29(5), 531-545. https:// doi.org/10.1016/j.foodpol.2004.07.013
• Binswanger, H. (1980). Attitudes toward risk, experimental measurement in rural India. Am. J. Agric. Econ., 62(3), 395-407. https://doi.org/10.2307/1240194
• Binswanger, H.P. (1981). Attitudes towards risk, theoretical implications of an experiment in Rural India. Econ. J., 867-890. https://doi.org/10.2307/2232497
• Cassio, J., Ruth, A., Huffman, D., Sunde, U. (2010). Are risk aversion and impatience related to cognitive ability? Am. Econ. Rev., 100(3), 1238-1260. 10.1257/aer.100.3.1238
• CARI (Competitive African Rice Initiative) Overview. (2018). Rice in Africa. https,//www.cariproject.org
• Dhungana, B.R., Nuthall, P.L., Nartea, G.V. (2004). Measuring the economic inefficiency of Nepalese rice farms using data envelopment analysis. Austral. J. Agric. Res. Econ., 48(2), 347-369. https://doi.org/10.1111/j.1467-8489.2004.00243.x
• FAO (Food and Agriculture Organization of the United Nations) (2008). Managing risk in farming. Rome.
• Fasoyiro, S.B., Taiwo, K.A. (2012). Strategies for increasing food production and food security in Nigeria. J. Agric. Food Inf., 13(4), 338-355.
• FMAWR (2008). National Food Security Programme, pg108.
• Hardaker, J.B., James, W.R., Lien, G., Schumann, K.D. (2004). Stochastic efficiency analysis with risk aversion bounds: a simplified approach. Austral. J. Agric. Res. Econ., 48(2), 253-270. https://doi.org/10.1111/j.1467- 8489.2004.00239.x
• Harrison, G.W., Lau, M.I., Rutström, E.E. (2007). Estimating risk attitudes in Denmark. A field experiment. Scand. J. Econ., 109(2), 341-368. https://doi.org/10.1111/j.1467-9442.2007.00496.x
• Jirgi, A.J., Grove, B., Jordaan, H., Nmadu, J.N. (2016). Risk attitude of monocrop and intercrop farmers in Kebbi state, Nigeria. J. Econ. Sustain. Dev., 7(8). retrieved from: https://core.ac.uk/download/pdf/234647475.pdf
• Kouamé, E.B. (2010). Risk, risk aversion and choice of risk management strategies by Cocoa farmers in Western Cote D'ivoire AERC Collaborative Phd Programme1-35. University of Cocody. Retrieved from: https://www.semanticscholar.org/paper/RISK-%2C-RISK-AVERSION-AND-CHOICE-OF-RISK- MANAGEMENT-Kouam%C3%A9/1fd63ec93ccda3c24 4b2a2b2368c4a62b66d710b
• Kumbhakar, S.C. (2002). Specification and estimation of production risk, risk preferences and technical efficiency. 84 (2), 8-22. https://doi.org/10.1111/1467-8276.00239
• Lema, T.Z., Tessema, S.A., Abebe, F.A. (2017). Analysis of the technical efficiency of rice production in Fogera district of Ethiopia, a stochastic frontier approach. Ethiop. J. Econ., 26(2), 89-108. Retrieved from: https://www.ajol. info/index.php/eje/article/view/177741
• Llewelyn, R.V., Williams, J.R. (1996). Nonparametric analysis of technical, pure technical, and scale efficiencies for food crop production in east java, Indonesia. Agric. Econ., 15(2), 113-126. https://doi.org/10.1016/S0169-5150(96)01202-9
• Menapace, L., Colson, G., Raffaelli, R. (2012). Cognitive heuristics and farmers' perceptions of risks related to climate change (No. 323-2016-11868).
• Menezes, C.F., Hanson, D.L. (1970). On the theory of risk aversion. Int. Econ. Rev., 11, 181-187. https://doi.org/10.2307/2525326
• Meyer, J. (2001). Expected utility as a paradigm for decision making in agriculture. In: R.E. Just, R.P. Pope (Eds.), A comprehensive assessment of the role of risk in us agriculture (p. 3-19). Boston: Kluwer.
• Miyata, S. (2003). Household risk attitudes in Indonesian villages. Appl. Econ., 35(5), 573-583. https://doi.org/10.1080/0003684022000020823
• Nwaru, J.C., Iheke, O.R. (2010). Comparative analysis of resource use efficiency in rice production systems in Abia State of Nigeria. J. Am. Sci., 6(11). Retrieved from: https://www.researchgate.net/publication/228426678_Comparative_Analysis_Of_Resource_Use_Efficiency_In_Rice_Production_Systems_In_Abia_State_Of_Nigeria
• Obih, U., Baiyegunhi, L.J. (2017). Implicit price estimation of quality attributes influencing rice prices and choice decisions of consumers in Nigeria. J. Agribus. Rural Dev., 3(45), 639-653. https://doi.org/10.17306/J.JARD.2017.00348
• Obwona, M. (2006). Determinants of technical efficiency differentials amongst small and medium scale farmers in Uganda: A case of tobacco growers. African Economic Research Consortium (AERC) Research Paper 152.
• Ogundele, O.O., Okoruwa, V.O. (2006). Technical efficiency differentials in rice production technologies in Nigeria. African Economic Research Consortium (AERC) Research Paper 154, Nairobi.
• Olaoye, O.J., Idowu, A.A., Omoyinmi, G.A.K., Ezeri, G.N.O., Oke, A.O. (2011). Factors determining fish hatchery operations in Ogun State, Nigeria. J. Agric. Exten. Rural Dev., 3(10), 172-181. Retrieved from: https://www.researchgate.net/publication/265510435_Factors_determining_fish_hatchery_operations_in_Ogun_State_Nigeria
• Olarinde, L.O., Manyong, V.M., Akintola, J.O. (2007). Attitudes towards risk among maize farmers in the dry savanna zone of Nigeria: some prospective policies for improv- ing food production. Afr. J. Agric. Res., 2(8), 399-408. Retrieved from: https://www.researchgate.net/publication/228433077_Attitudes_towards_risk_among_maize_farmers_in_the_dry_savanna_zone_of_Nigeria_some_prospective_policies_for_improving_food_production
• Ologbon, O.A.C., Awotide, D.O., Otunaiya, A.O., Idowu, A.O. (2018). Technical efficiency of rice-based farming systems under selected soil conservation practices in Ogun State, Nigeria. World J. Agric. Sci., 3(1), 49-57.
• Onoja, A.O., Achike, A.I. (2010). Comparative analyses of farm resource efficiencies in rice production under small scale farmer-managed irrigation schemes and rainfed systems in Kogi State, Nigeria. Research Journal of Agriculture and Biological Sciences, 6(6): 1047-1054. Retrieved from: https://www.semanticscholar.org/paper/Comparative-analyses-of-farm-resource-efficiencies-Onoja-Achik e/8090ade4845257ae4da94f5f2be13aaf0219af9f
• Osabohien, R., Matthew, O., Gershon, O., Ogunbiyi, T., Nwosu, E. (2019). Agriculture development, employment generation and poverty reduction in West Africa. Open Agric. J., 15. http://dx.doi.org/10.2174/1874331501913010082
• Pawlak, K., Kołodziejczak, M. (2020). The role of agriculture in ensuring food security in developing countries: considerations in the context of the problem of sustainable food production. Sustainability, 12(13), 5488. https://doi. org/10.3390/su12135488
• Rabin, M. (2000). Risk aversion and expected-utility theory. Econometrica, 68(5), 1-14. Retrieved from: https://www. jstor.org/stable/2999450
• Rabin, M., Thaler, R.H. (2001). Anomalies, risk aversion. J. Econ. Perspect., 15, 219-232. Retrieved from: https:// www.jstor.org/stable/2696549
• Ramaswami, B. (1992). Production risk and optimal input decisions. Am. J. Agric. Econ., 74(4), 860-869. https://doi. org/10.2307/1243183
• Salau, S.A., Adewumi, M.O., Omotesho, O.A. (2012). Technical efficiency and its determinants at different levels of intensification among maize-based farming households in the Southern Guinea Savanna of Nigeria. Ethiop. J. Env. Stud. Manag., 5(2), 195-206. https://doi.org/10.4314/ejesm.v5i2.11
• Tan, S., Heerink, N., Kuyvenhoven, A., Qu, F. (2010). Impact of land fragmentation on rice producers' technical efficiency in south-east China. J. Life Sci., 57(2), 117-123. https://doi.org/10.1016/j.njas.2010.02.001
• Tijani, A.A. (2006). Analysis of the technical efficiency of rice farms in Ijesha Land of Osun State, Nigeria. Agrekon, 45(2), 126. Retrieved from: https://citeseerx.ist.psu.edu/ document?repid=rep1&type=pdf&doi=5ebfaf968d8360c 09e9206c44892a40a044a53c8
• Tong, Q., Swallow, B., Zhang, L., Zhang, J. (2018). Risk attitude, technical efficiency and adoption: An integrated approach to climate-smart rice production in the Jiangshan plain, China. 30th international conference of agricultural economist. July 28 - August 2, Vancouver. 10.22004/ag.econ.277311
• Tong, Q., Swallow, B., Zhang, L., Zhang, J. (2019). The roles of risk aversion and climate smart agriculture in climate risk management, evidence from rice production in the Jiangshan plain, China. Clim. Risk Manag. http://dx.doi. org/10.1016/j.crm.2019.100199
• USDA (United States Department of Agriculture) (2016). Production, supply and distribution. Washington, DC. https://apps.fas.usda.gov/psdonline/psdquery.aspx
• World Bank. (2005). World development indicators. www.worldbank.org
• Yesuf, M. (2007). Risk aversion in low-income countries: experimental evidence from Ethiopia. discussion paper 715. International Food Policy Research Institute, Environment and Production Technology Division.
• Zeckhauser, R., Keeler, E. (1970). Another type of risk aversion. Econometrica, 38, 661-665. https://doi.org/10.2307/1912199
• ---

Identyfikatory

DOI

10.17306/J.JARD.2023.01732