Analysis Of Risk Management Strategies Among Rural Cassava-Based Farmers In Imo State

ABSTRACT

The study analyzed the risk management strategies of cassava-based farmers in Imo State, Nigeria. Specifically, the study described the socioeconomic characteristics of the cassavabased farmers, identified their sources of risk, and their risk management strategies, determined the effect of their socioeconomic characteristics on the choice of risk strategies adopted, ascertained and compared their profits in relation to their risk management strategies, and identified the constraints faced in adopting a risk management strategy. Data were collected with the use of well-structured questionnaire administered to 180 respondents. Results of the study showed that the farmers were of middle-age, fairly educated and have average farm size of one hectare. Majority of the farmers (76.11%) and (73.89%) identified loss of crop due to disease and loss due to erosion as sources of risk farmers were exposed to. Also greater number of the respondents adopted practicing of mixed cropping and planting of disease resistant species as risk management strategies. The result of the Multinomial Logit regression indicated that age, educational level, farm income and farm experience were the major determinants of risk management strategies adopted by the farmers. For the purpose of comparison of their profits), the farmers were grouped into three categories based on their choice of risk management strategies. Category one is made of 91 farmers while two and three categories are made of 45 and 44 farmers, respectively. The estimated profits of farmers in category 1 was N373211.58/ha with return to naira spent of 2.61. Farmers in category 2 realized a profit of N678327.60/ha and return to naira spent of 1.84 while farmers in category 3 realized a profit of N617620.03/ha and return to naira spent of 3.18, respectively. The farmers were constrained by high cost of labour, fertilizers, agro chemicals, and lack of credit facilities. It was recommended that government and other stake holders should make policies that will enlighten the rural farmers on the need to increase the adoption of effective risk management strategies as it will help reduce high rate of uncertainty in their production. Also farmers should be mobilized to form cooperative groups as this will help them mobilize rural savings that will be readily available for the farmers.