From risk behavior to perceived farm resilience: a Dutch case study

Abstract

In an era where farmers face considerable levels of intertwined risks and uncertainties, farm resilience is developing into a focal point for agricultural policies. Using survey data from 916 Dutch farmers, we explore how risk behavior relates to perceived resilience. We capture the dynamics of resilience thinking by investigating past risk-management portfolios, current risk preferences, future risk perceptions, and perceived resilience. Partial least squares structural equation models (PLS-SEM) indicate that higher perceived robustness, adaptability, and transformability relate to these farmers with a more resilient future. Additionally, results show the importance of risk management in assessing perceived resilience. More specifically, we find that more diverse risk-management portfolios are associated with (i) higher perceived adaptability and (ii) in specific cases, higher perceived transformability.

Keywords

• adaptability
• partial least squares structural equation model (pls-sem)
• resilience
• risk management
• risk perception
• risk preference
• robustness
• transformability