Adoption of Diversification for Risk Management in Vegetable Cultivation
2015
Ali, Jabir
Risk and uncertainty are inherent characteristics of agricultural production system; farmers are confronted with various potential risks related to production, markets, and prices that affect their financial returns and overall welfare. A study was undertaken to analyze factors affecting adoption of crop diversification as a risk management strategy in vegetable cultivation. A logistic regression model was constructed and tested based on responses to a questionnaire from 556 vegetable growers from eight districts of Uttar Pradesh. About 80% of vegetable growers adopted crop diversification and comparatively younger, socially underserved farmers with lower income are more likely to adopt diversification as a risk mitigating tool. Use of high-yielding seed, volatility in temperature, high marketed surplus ratio, availability of market demand, arrangement of organized buyers, and adoption of processing techniques are most likely to influence adoption of diversification. A better understanding of adoption of diversification for risk management was obtained and how socioeconomic, farm-related, market, and climatic factors affect adoption of crop diversification.
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