Work

Economic Sustainability and Multiple Risk Management Strategies: Examining Interlinked Decisions of Small American Farms

Year: 2021

Type: article

Abstract: Economic viability of small farms and farming businesses depends on multiple factors. These farms have limited production and financial resources to maintain their operation. Therefore, to sustain farming, adopting appropriate risk management strategies is a pivotal decision for small farmers. We surveyed Tennessee’s small farms and utilized multivariate probit models to study factors influencing the adoption of various risk management strategies. Our findings suggest that the decisions related to the adoption of risk management strategies are significantly interlinked. Along with factors representing the operator’s age, education, and farm operator’s income and land holdings, we also found that the government incentives (payments), smartphones, and farmers’ continuation plan significantly influence the strategic decisions of adopting risk management strategies.

Source: Sustainability

DOI: 10.3390/su13041741

Authors: Sudip Adhikari, Aditya R. Khanal

Institution: Tennessee State University

Language: English

Topic: Agricultural risk and resilience

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Decent work and economic growth, Zero hunger

Open Access status: gold

Estimated APC paid: $2,052