Russian Journal of Agricultural and Socio-Economic Sciences (Mar 2023)

ATTITUDE OF RICE FARMERS TOWARDS FARMS’ CREDIT RISK

  • Pellokila M.R.,
  • Levis L.R.,
  • Serman N.,
  • Klau F.,
  • Bernadina L.,
  • Hendrik E.

DOI
https://doi.org/10.18551/rjoas.2023-03.06
Journal volume & issue
Vol. 135, no. 3
pp. 42 – 50

Abstract

Read online

This study aims to determine the perception of lowland rice farmers in facing the risk of farm credit and the factors that influence it. Simple random sampling method was applied to take 77 respondents from rice farmers. By using the "Bernoulli Utility Function" approach, farmers' perceptions of farm credit risk were analyzed. Simple regression analysis is used by performing a "risk coefficient aversion"(RCA) regression on the age of farmers and the size of rice farmers' land area owned by the farmers. The results of the analysis show that most of the rice farmers are risk averter to face the risk of farm credit as many as 38 (49.35%) respondents, 21 (27.27%) farmer respondents are risk neutral and as many as 18 (23.38%) respondents are risk seeking. The results of simple regression analysis show that there is a significant relationship between "RCA" with age of the farmer and the size of rice field owned by the farmers.

Keywords