Attitudes of Vegetable Farmers towards Risk In Al-Mafraq Governorate ? Jordan

ABSTRACT The main objective of this study is to examine vegetable farmers’ attitudes towards risk in Al-Mafraq Governorate. A random sample of 68 vegetable farmers in Al-Mafraq Governorate was selected. In order to measure risk attitudes, utility functions for vegetable farmers in Al-Mafraq Governorate were estimated. For this purpose, Von Neumann? Morgenstern model was used. Based on the estimated utility functions, risk attitudes coefficient for each farmer was measured. Studying farmer’s attitudes towards risk is very important in the decision-making process. These attitudes are considered to be the main constraints to the adoption rates of vegetable technology by farmers. Consequently, vegetable production is affected by these attitudes. Of the total random sample of 68 farmers in Al-Mafraq Governorate, a purpose sample of 30 vegetable farmers was selected, i.e. 12 farmers (40%), 14 farmers (47%), and 4 farmers (13%) were falling into three categories: risk avert, risk neutral and risk taker, respectively. They gave answers, which can be used for the purpose of utility function estimation. It is believed that those farmers took the subject seriously so that their decisions are good indications of their preferred choices. To analyze the relationship between farmers' personal characteristics such as age, education, farm size, family size, and experience in agriculture and their risk attitudes, a multiple linear regression model was used, The risk ? coefficient is taken as the dependent variable, while the farmers' characteristics are taken as independent variables. The regression results of the study indicated that the coefficient of the intercept, the coefficient of age (X1), the coefficient of educational level (X2), were statistically significant at 5% of the significance level. The coefficient of family size (X5), the coefficient of farm size (X3), were statistically significant at 10% of the significance level. The coefficient of agricultural experience (X4) was not statistically significant.