ANALYSIS OF RISK MANAGEMENT STRATEGY BY ARABLE CROP FARMERS IN ABIA STATE, NIGERIA

OSONDU C.K.¹, ANYIRO C.O.², IJIOMA J.C.³, OBIKE K.^4
1Department of Agricultural Economics and Extension Abia State University, Umuahia Campus, PMB 7010, Umuahia, Abia State, Nigeria.
²Department of Agricultural Economics and Extension Abia State University, Umuahia Campus, PMB 7010, Umuahia, Abia State, Nigeria.
³Department of Agricultural Economics and Extension Abia State University, Umuahia Campus, PMB 7010, Umuahia, Abia State, Nigeria.
⁴Department of Agricultural Economics and Extension Abia State University, Umuahia Campus, PMB 7010, Umuahia, Abia State, Nigeria.

Received : 14-11-2013     Accepted : 12-12-2013     Published : 30-12-2013
Volume : 2     Issue : 1       Pages : 26 - 29
World Res J Agron 2.1 (2013):26-29

This study examined the risk management strategy by arable crop farmers in Abia State, Nigeria. The specific objectives were to identify risk common with arable crop farmers; describe risk management practices adopted by arable crop farmers; determine factors that influence the use of risk management practices; and identify constraints militating against effective risk management by arable crop farmers in the state. Multi-stage random sampling technique was used in selecting locations and respondents through which Three hundred (300) farmers were selected and interviewed with the use of structured questionnaire. Collected Data were analyzed using descriptive statistics, and probit regression model. Result revealed that prevalent risks in the area were pest and disease attack (88.33%), drought (61.67%) and theft (43.33%). The prevalent risk management strategies adopted by farmers in the study area were use of inorganic fertilizer (41.66%), planting on ridges (32.00%) and use of improved varieties (26.00%). The coefficient of farm size, farm experience, household size and age had significant influence in the use of risk management practices by farmers. In an attempt to ameliorate the identified risks, the major constraining factor has been identified as lack of fund (70.67%). We recommend implementation of policies aimed at improving farmers’ access to loans and extension training this will help equip farmers to effectively manage identified risks.