Evaluation of Onion Farmers’ Risk-Tendency in Tabriz Plain Using Nonlinear Mean- Standard Deviation Model

Authors

Abstract

Abstract
Considering the risk in agricultural economics analysis causes the producers to choose and perform appropriate policies and programs in opposition of risk. Onion is one of the main agricultural products in Iran. Farmers’ risk tendencies have been estimated in this paper using a parametric approach and Saha’s Mean- Standard Deviation Model. The data were collected from 233 onion farmers in 2009-2010. To address this we used Two-Stages Random Sampling Method. Results showed that farmers are risk averse and their aversion increases by increasing in risk of enterprises and decreases by increasing in farmer's income. Therefore, policies like agricultural insurance are advised to decrease the onion production risk.

JEL Classification: D21, D81

Keywords:
Risk-Tendencies, Mean–Standard Deviation Approach, Onion, Tabriz Plain