Farming decision making under risk conditions A case study of Arsanjan Township

Document Type : Original Article

Abstract

   Massive amount of studies have been done to analyze farmers decisions considering the effect of risk. In these studies, different methods such as MOTAD, Target- MOTAD, - Separable linear programming, Mean variance, focus - loss, etc. have been used .In this research advanced-MOTAD and target-MOTAD have been used. The advanced-MOTAD model, in which the risk cost has been initiated as a time period function, is more suitable to Iran agricultural section. The used data are related to Arsanjan agricultural district from 1999 to 2004. The results state that as the risk coefficient parameter alters, the planting combination, while the gross profit and risk are invariable, alters too, corns and tomatoes are the products most affected by the change of the coefficient. The advanced MOTAD-Model provided farming pattern with less risk than target MOTAD model.