RISK AVERSION MEASURES BY NIGERIAN CO-OPERATIVE AGRICULTURAL PRODUCERS
Keywords:Co-operative, Risk aversion measures, OLS regression and Ondo and Oyo States
This paper examines the various types of risk small-holder face. analyses the farmers' attitudes to these risks and the measures taken to contain them. A total of 100 farmers were interviewed in ten local government areas of Ondo and Oyo States and certain of their socio-economic characteristics are analyzed to categorize the respondents into various risk-averse levels. Analyses indicate that high-risk averse farmers are generally younger in age, have smallest family size, lowest annual income. smallest land holdings, least education and least number in solidarity groups compared with the other risk-aversion categories.
Results of OLS regression analyses based on linear and Cobb-Donglas models show that age is a poor indicator to categorize low and medium risk-averse farmers. On the other hand, family size, size of farms, secondary occupation and level of education are good indicators of risk aversion tendencies for all categories of risk-averse respondents. A correlation analysis reveals that many of the explanatory variables correlate inversely one with another - but these are consistent with their coefficients in the regression analyses (earlier on).