An Economic Analysis Of Farm Risk Management In Different Production Environments In Tamil Nadu

Abstract

In a predominantly agrarian country like India, agricultural progress serves as the newlinemost effective safety measure against hunger and deprivation. Risk is a central issue that newlineaffects different aspects of people s livelihood in the developing world. The main sources newlineof risk and uncertainly prevailing in crop production are yield, price and gross income newlineinstability. Risk is a major concern to farmers, because they do not have perfect newlineknowledge to forecast events such as input prices, output prices and weather conditions newlinethat might affect the profitability of the farm business. Efficient agricultural farm plans is newlinefound to be more appropriate in addressing situational needs and more useful and newlinemeaningful in optimizing production and income in any farm. Therefore, development newlineand promotion of farm plan models and resource management based on scientific newlineprinciples seems to be the probable approach to avert the farm risk. With this background newlinethe present study, attempts to focus the Economic Analysis on Farm Risk Management in newlineDifferent Production Environments in Tamil Nadu with the following specific objectives newline: To analyze the cost and returns of principal crops in the study area, to estimate the newlinetechnical and economic efficiency of principal crops in different production newlineenvironments, to identify and quantify the various risk factors in the farm business in the newlinestudy area, to study the risk coping strategies adopted by the farmers in agriculture and, newlineto develop risk efficient farm plans with optimum enterprise mix and to suggest newlineappropriate strategies to improve production and income of farmers in the study area. newlineMulti Stage Random sampling technique was employed in the present study. Krishnagiri newlineand Ramanathapuram districts were chosen based on vulnerability index score to study newlinefarm risk management in Tamil Nadu. From each district, equal number of sample newlinefarmers was selected under different production environments and thus the total sample newlinesize was 180. newlineAverage and percentage analysis was used to examine the gene