Attitudes Towards Risk and Risk Combating Strategies among Maize and Cassava Farmers in Southwest, Nigeria

Abstract

Aims: This study examines maize and cassava farmers’ attitudes towards risk and risk combating strategies in Southwest, Nigeria. Place and Duration of Study: The study was conducted in Ondo State, Nigeria between February, 2015 and August, 2015. Methodology: A multistage sampling procedure was employed to select 320 respondents for the study. The collected data were analysed using descriptive statistics and ordered probit regression model. Results: The results show that 46.8% and 50.9% of cassava and maize farmers respectively were risk averse, while about 25.3% and 22.4% of cassava and maize farmers respectively were risk taker. The remaining 27.9% and 26.7% of the respondents in cassava and maize enterprise respectively were risk neutral. Also, findings from the study on cassava enterprise revealed that gender, age, farming experience, membership of association, non-farm income and extension agent visits had significant relationship with farmers’ risk attitude. On maize enterprise, the study indicated that age, household size, educational status, membership of association, storage availability and farm size had significant relationship with farmers’ risk attitude. The results of respondents’ strategies at combating risks in cassava and maize production showed that majority of the farmers indicated multiple cropping, engagement in less risky enterprises and income diversification as strategies used at combating risks while the least strategy used was insurance. Therefore, the impact of Agricultural Insurance Industry still needs to be felt more in order to encourage farmers who are risk averse to be risk taker. The agricultural insurance industry in Nigeria should be further strengthened and empowered to service risky farm businesses.