TITLE:
Risk Preferences and Risk Perceptions among Smallholder Maize Farmers in Tanzania: Evidence from a Framed Field Experiment
AUTHORS:
Violeth Joab Mwaijande, John Victor Msinde, Adam Meshack Akyoo, Arnold Angelo Mushongi
KEYWORDS:
Risk Preferences, Risk Perception, Maize Smallholders
JOURNAL NAME:
Theoretical Economics Letters,
Vol.13 No.3,
June
14,
2023
ABSTRACT: The information on risk preferences and risk perceptions among maize farmers in maize highly growing highlands is limited.
Similarly, relationships between
socio-demographic factors and risk preferences are not clearly explored.
A risk game with pay-offs and a hypothetical scenario in a survey questionnaire were performed to assess the risk preferences
of maize farmers in maize-growing regions of the Southern
and Northern highlands of Tanzania. Risk ranking was
executed during focus group discussions and revealed that risk perceptions of maize farmers varied across
gender and location. Cross-sectional data on farmers’ and farms’ characteristics
including risk scenarios from an Agronomic
Panel Survey (APS) of the 2016/2017 growing season was collected from 560
Household Heads (HHs), randomly selected within a spatial sampling frame. The
study recommends the inclusion of risk preferences and risk perceptions status
of farmers in policy-making and the introduction of new agricultural technologies in order to foster a high adoption rate and advancement
of agricultural development.