Sources of Risk and Risk Management Strategies: The Case of Smallholder Farmers in a Developing Economy, Risk Management - Current Issues and Challenges, Nerija Banaitiene, IntechOpen, DOI: 10.5772/50392. Boggess, Anaman, and Hanson examined farmers’ awareness of risk in crop and livestock production in northern Florida and southern Alabama. The development of a national agricultural crop insurance scheme should be one of the Thai government’s priorities. However, the pledging scheme has been widely debated among policy experts, especially for rice. This implies that the more educated farmers perceived these risk management strategies as highly important. © 2012 The Author(s). Purposive random sampling was employed to classify a particular group of respondents from a certain portion of the population. Table 8 summarizes the multiple regression models of the risk management strategy components and the socioeconomic variables for all farmers. compared risk perception and the risk responses of conventional and organic dairy farmers in Norway. The perceptions of risk responses between the farmers in the central and north-east regions were statistically different in many strategies similar to their perceived sources of risk (see Table 4). This suggests that farmers who have loans are more likely to pay more attention to the changes to their farm financial situation, such as interest rates and level of debt. This may be due to the ‘natural disaster’ risk damaging their farm crops, which results in insecurity of their farm income and debt repayment capacity. However, the preliminary results indicated three sources of risk including ‘accidents or problems with health’, ‘deficiency rainfall’ and ‘changes in technology or breeding’ should be eliminated from the factor analysis because of their low communalities (<0.40). hedging). Akasinha, Ngamsomsuk, Thongngam, Sinchaikul and Ngamsomsuk examined risk perceptions among rice farmers in Payao and Lampang provinces in the northern region. The north-east farmers considered these two production strategies as ‘important’ but the central region farmers rated them as ‘quite important’, which is statistically significant different (P<0.01). (19, 20) Extant literature shows that there is no agreement about the most appropriate methods to describe sources of risk and risk responses on farms. Only about four per cent had loans from commercial banks. Further, 30 per cent of the farmers in the north-east had outstanding debts of less than 30,000 baht during the 2008 crop year. The first iteration of factor analysis resulted in the removal of ‘able to adjust quickly to weather, price and other adverse factors’ and ‘purchase farm machinery to replace of labour’, because these variables exhibited low communalities. The alpha value for factor AR4 was 0.596, which is very close to the minimum cut-off level of 0.6. For several decades, agricultural production in Thailand has faced many risks such as variability in yields, product-prices and cost of inputs. (9) Using size of the respondents’ farms as large, medium, and small farms, the author argued that a farmer’s awareness of the sources of risk varied depending on farm size. Varimax rotated factor loadings of sources of risk for all sampled in Thailand farmers (n=800). In preparing this paper, staff conducted the most comprehensive survey of fiscal risks to date, looking at sources of shocks to government debt in 80 countries The KMO index varies from 0 to 1, with results of 0.6 or greater suitable for factor analysis. Only 10 per cent of the farmers in both regions had used this strategy to manage risk. In 2007, the average monthly income per farm in this region is 8,344 baht.(16). (24), Ranking of perceptions of sources of risk by sampled farmers in central and north-east Thailand, The survey results showed that the uncertainty of input prices and product prices have become increasingly worrying among smallholder farmers in the central and north-east regions. From the survey, farm machinery, such as hand tractors and four-wheel tractors, was widely used among the central region farmers. The development of the plan should follow a clear process, to ensure that all tourism stakeholders know what it involves. Understanding how to manage risks in tourism is vital for tour operators. Our team is growing all the time, so weâre always on the lookout for smart people who want to help us reshape the world of scientific publishing. Human knowledge risks . (43) In addition, there are some obstacles that policy makers should consider for the successful implementation of the crop insurance schemes. (2, 5, 6) The types and severity of risks that farmers face differ from place to place. This is because farmers’ groups or cooperatives can help farmers to improve their negotiating power. Satit Aditto, Christopher Gan and Gilbert V. Nartea (September 12th 2012). After establishing the context, the next step in the process of managing risk is to identify potential risks. Staff and systems are considered to be the causes of losses, but this definition of risk does not take into account the fact that these entities are best placed to identify the sources of potential losses and to issue warnings in order to measure and manage this risk. The goodness-of-fit coefficients of all models were rather low, except for model three where the coefficient explained around 27 per cent of the variation of the dependent variable. Table 7 shows the relationship between all farmers’ socioeconomic status and the different perceptions of sources of risk components. Second, purposive sampling was employed to select smallholder farmers in each group. Without much knowledge in risk management, a project manager cannot plan accordingly. These six factors can explain almost 71.2 per cent of the total variance. This result indicates that the central region farmers hold average farm sizes larger than north-east farmers (P<0.01). What are the sources of the project risk? 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