Analysis Of Risk Management Strategy By Rural Farmers In Abia State

ABSTRACT

The study was motivated by the need to examine the risk management strategies by rural farmers in Abia State. The objectives of the study include the identification of the socio-economic characteristics of the respondents, the identification of the various risk encountered by farmers, the description of risk management practices adopted by the farmers, the factors that influence the use of risk management practices and constraints militating against the adoption of risk management strategies by farmers. To solve the research problem both primary and secondary data were collected from a total of 60 farmers from 3 Local Government Areas purposively selected out of the 3 Agricultural zones of the state. The research instrument used in collecting the data was the questionnaire. In analyzing the data collected, the Maximum Likelihood and Percentages were employed. Four (4) variables were identified as possible determinants of use of risk management strategies. Some of the variables include: Age, farm experience, farm size and household size. It was observed that the predominant risks in the study area are natural and social risks. The risk management practices adopted by the farmers in the study area are traditional and old practice and majority of the farmers have lack of fund as constraint facing them. in tine with the findings, the researcher recommends that increased extension services activities should he encouraged as this will help train and encourage the rural hirmers to adopt the organizational (modern) risk management strategies.