Risk Aversion Behaviour of Dry Land Farmers in Tamil Nadu

Abstract

This study investigated the risk aversion behaviour of dry land farmers in Manaparai taluk of Tiruchirappalli district in Tamil Nadu State, using multiple linear production function. Structured questionnaires were used to collect data from 120 respondents randomly selected from designated locations in the project area. The findings revealed that, the risk assuming ability of small farmers was improving with the increase in the size of the farm, years of farming experience and also with the social status (upper caste) the risk assuming ability of medium farmers improved with an increase in non-farm assets and farming experience of the farmer. Risk aversion increased with an increase in the number of dependents in the family, and the risk assuming capacity of large farmers improved with years of farming experience, years of education, extension agency contact and mass media exposure and also with the social status (upper caste). These results suggest that provision of timely and adequate co-operative credit and subsidised inputs were the most felt needs of all the size groups of farmers and this study also reveals that, dry land farming can be improved by solving the important measures as expressed by the farmers were writing off loans in drought years, creation of drought relief fund, non-farm employment opportunities, livestock loans, crop insurance and long term loan for well digging.