FARMERS RISK ATTITUDES, LOCATIONS AND DECISIONS TO ADOPT IMPROVED RICE VARIETIES IN OGUN STATE NIGERIA

Abstract

Farmers’ willingness to taking risky decisions has important economic implications. However, while such attitudes have been previously examined, the relationship between farmers’ risk attitudes and locations has not attracted research attention. This study examined the relationship between rice farmers’ risk attitudes and locations, as well as the correlation between farmers’ risk attitudes and past investment decisions (adoption of improved rice technology). The study utilized survey and experimental data collected across the four agricultural zones in Ogun State Nigeria. The data were descriptively analysed using frequency tables, histogram, principal component and correlation analyses. The results showed that most sampled farmers avoid taking risky prospects, with those located in the rural agricultural zones tend to avoid risk taking than their counterparts in other locations. More importantly, rice farmers’ risk attitudes negatively correlated with adoption decisions. This correlation evidently confirmed spatial relationship in risk attitudes and farmers’ pattern of adoption. Similar patterns of adoption and risk attitudes suggest spatial heterogeneity which have consequences on farmers’ investment decisions, income and wealth accumulation.