Factors Affecting the Pomegranate’s Production Risk with Emphasizing on Poverty(As a Case Study:Villages of Shahreza Central Region)

Authors

• S. A. Mortazavi
• M. Ghorbani
• P. Borujeni
• A. Alipour

Abstract

Poverty is an important socio – economic feature that affects the economic activities of rural farmers; since the socio – economic characteristics are effective on farmers’ risk aversion behavior, risk assessment becomes more important with the consideration of poverty. In this study, inputs risk of Pomegranate production in the villages of Shahreza’s central region were analyzed, using maximum likelihood estimation (MLE) and generalized stochastic production function. Poverty status of farmers was examined, in the three groups with low, medium and high-risk aversion, by calculating the poverty index. Then the risk aversion parameter was calculated, based on input elasticity of production function, and the effect of socio - economic characteristics of farmers on it was evaluated. Also, the gap between farmers’ income and absolute poverty line was considered as their poverty category, which was intended as the dummy variable affecting the risk aversion parameter. The farmers under studying were selected through two-stage cluster sampling of Pomegranate farmers in villages of Shahreza’s central region. Results of the estimation show that inputs of cultivation areas and fertilizers have positive effects on pomegranate production risk and the amount of water; manure and labor have negative effects on it. In addition, poverty was recognized as an increasingly and family size and cultivation area were recognized as reducer factors on risk aversion parameter. Finally, it was suggested to applying the policies of providing phosphate and nitrate fertilizers on the suitable time, extending product insurance and reducing poverty to achieving the aim of risk management for producers.
 

Keywords

• Risk Aversion Parameter
• Generalized Stochastic Production Function
• the Poverty Index

20.1001.1.20086407.1391.4.15.1.5

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