Farmer’s perceptions on risk and determinants of risk management strategy in integrated cattle and crops farming systems

Abstract

The research was conducted to analyze farmers’ risk perceptions and factors that influence farm-ers' decisions in implementing risk management strategies to integrated farming of cattle and crops. This study used a survey method by conducting interviews to 150 respondents who were divided into two patterns based on the composition of the farming practice. Pattern I practice cattle-rice-corn-rice business and Pattern II practices cattle-rice-corn-soybean in Grobogan District, Central Java, Indone-sia. Data were collected in January - May 2019 and were analyzed using probit model on the risk man-agement strategies adopted consisting of credit, insurance, partnerships, and off-farm income. The re-sults showed that 59.15 percent of pattern I farmers and 47.06 percent of pattern II farmers perceived the risk of farming due to climate, market, biological and financial in the high category. Farmers' deci-sions in implementing risk management strategies were influenced by farmers' perceptions of climate, market, biological and financial risks.