Production Diversification as a Tool for Agricultural Risk Management: The Case of Northern Kazakhstan

Q3 Economics, Econometrics and Finance

WSEAS Transactions on Business and Economics Pub Date : 2023-11-03 DOI:10.37394/23207.2023.20.210

Talgat Kussaiynov, Gulnara Mussina, Sandugash Tokenova, Saltanat Mambetova

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Abstract

This paper addresses the impacts of degree of risk aversion on optimal farm plans in Kazakh agriculture. The results obtained during the field research in the region of Northern Kazakhstan are presented. Calculations were carried out using data from 145 peasant farms in the region for 2017-2022 based on a risk model. It has been found that the choice of a portfolio is influenced not only by considerations of profitability and riskiness of crops, but also by grain production traditions deeply rooted among the farmers of the region, and the skills and knowledge associated with them, as well as the existing infrastructure. These circumstances constrain the wider spread of oilseed crops in the region. It seems that the size of the farm does not significantly affect the choice of portfolio, while the degree of risk aversion by the farmer affects the optimal farming plan. The potential benefits of the farming diversification are an empirical issue, and it should be addressed on a case-by-case basis. The question is to choose the utility function and its parameters that most accurately reflect the preferences of a particular farmer, the authors conclude.

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生产多样化作为农业风险管理的工具:以哈萨克斯坦北部为例

本文讨论了风险规避程度对哈萨克农业最优农场计划的影响。本文介绍了在哈萨克斯坦北部地区实地考察的结果。基于风险模型，使用该地区145个农民农场2017-2022年的数据进行了计算。研究发现，投资组合的选择不仅受到对作物盈利能力和风险的考虑的影响，而且还受到该地区农民根深蒂固的粮食生产传统、与之相关的技能和知识以及现有基础设施的影响。这些情况限制了油籽作物在该地区的广泛传播。农场规模似乎对投资组合的选择没有显著影响，而农民的风险厌恶程度影响最优耕作计划。农业多样化的潜在效益是一个经验性问题，应具体问题具体分析。作者总结道，问题在于选择最能准确反映特定农民偏好的效用函数及其参数。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

WSEAS Transactions on Business and Economics Economics, Econometrics and Finance-Economics and Econometrics

CiteScore

1.50

自引率

0.00%

发文量

180

期刊介绍： WSEAS Transactions on Business and Economics publishes original research papers relating to the global economy. We aim to bring important work using any economic approach to a wide international audience and therefore only publish papers of exceptional scientific value that advance our understanding of finances. The research presented must transcend the limits of case studies, while both experimental and theoretical studies are accepted. While its main emphasis is economic, it is a multi-disciplinary journal and therefore its content mirrors the diverse interests and approaches of scholars involved with the international dimensions of business, economics, finance, history, law, marketing, management, political science, and related areas. It also welcomes scholarly contributions from officials with government agencies, international agencies, and non-governmental organizations.