Production Risk and Risky Tendencies of Saffron Farmers in Torbat-e Heydarieh with Emphasis on Poverty Index

The purpose of this study is surveying the production risk and evaluation the factors affecting on risk tendency of saffron farmers in Torbat-e Heydarieh with emphasis on poverty index in 2010. For this purpose, 91 questionnaires were completed from saffron farmers using random sampling method. Thus, Just and Pope (1979) model was used for determination of effective factors on production risk. Risk averse index of farmers was calculated using risk parameter provided by Moscardi and DeJanvry (1977). Also, poverty indexes were calculated using FGT index. According to the results, factors such as land under cultivation, fertilizer consumption, and water use have negative effect on production risk. The most saffron farmers were risk averse too. Results of calculating headcount index show that about 55 % of sample is poor and the most of them are risk averse. Index of poverty gap revealed that with decreasing the risk averse degree of saffron farmers, poverty gap will decrease. Poverty intensity index show that with increasing the degree of risk take of poor saffron farmers, they will suffer less from the poverty. According to the results, age and education level have a positive and negative effect on risk averse of saffron farmers respectively. Also, land under cultivation of saffron to total of land under cultivation ratio and saffron income to total of agriculture income ratio show a negative effect on risk averse of farmers. Placing the farmers in poverty core lead to increase the level of risk averse.

JEL Classification: D81, D1
Keywords:
Poverty, Risky Tendencies, Saffron, Torbat-e Heydarieh, Production Risk