Factors that Influence Farmer’s Behavior Towards Risk

• Main Authors: Nurdin Yusuf Muhamad, Yuniawan Isyanto Agus, Sudradjat Sudradjat
• Format: Article
• Language: English
• Published: EDP Sciences 2021-01-01
• Series: E3S Web of Conferences
• Subjects: land area; logistic regression; risk taker; quadratic utility
• Online Access: https://www.e3s-conferences.org/articles/e3sconf/pdf/2021/02/e3sconf_icon-beat2019_00030.pdf
• ISSN: 2267-1242

The research was carried out with the aim to find out the behavior of farmers towards risk and the factors that influence it. The research sample was 100 paddy farmers in flood-prone area paddy fields in Pangandaran District, West Java Province, Indonesia. Farmer’s behavior towards risk was analyzed using quadratic utility functions, while the factors that influence farmer’s behavior towards risk were analyzed using logistic regression. The results showed farmers 87 was risk neutral, while 13 farmer risk takers were farmers. Education, familys size and income significantly influence farmer’s behavior towards risk; while age, experience, land area, production risk, price risk, income risk and group did not significantly influence farmer’s behavior towards risk.