Analysis of Beef Producers’ Risk Management Perceptions and Desire for Further Risk Management Education

Authors

David C. Hall, International Livestock Research Institute, Nairobi, Kenya
Thomas O. Knight, Texas Tech UniversityFollow
Keith H. Coble, Mississippi State UniversityFollow
Alan E. Baquet, University of Nebraska-LincolnFollow
George F. Patrick, Purdue UniversityFollow

Document Type

Article

Date of this Version

12-2003

Comments

Published in Review of Agricultural Economics 25:2 (December 2003), pp. 430–448. Published on behalf of the Agricultural & Applied Economics Association by Blackwell/John Wiley. Used by permission. http://www.interscience.wiley.com/jpages/1058-7195

Abstract

Beef cattle producers were surveyed in Texas and Nebraska to investigate perceptions of sources of risk, the effectiveness of risk management strategies, and interest in further risk management education, particularly production risk, using probit analysis. Important decision variables identified are age, prior use of risk management tools, previous attendances of risk management education, and risk aversion. Severe drought and cattle price variability are identified as primary risk factors with potential to affect farm income. Extremely cold weather and disease are of less importance. Understocking pasture and storing hay are perceived most effective as risk management options.