Farmers Risk Perception, Management Strategies and Effectiveness: Evidences from Coconut Farmers of Kerala, India

This paper explains the perceptions of farmers regarding various risk events and conditions causing it, various risk management strategies being adopted by farmers and the effectiveness of these strategies; with the help of primary data collected from 273 coconut farmers of Kerala. Risk management strategies like membership in farmer collective (Producer company), farm diversification and value addition were considered in the study. Efficacy of these chosen risk management strategies were assessed and confirmed with the help of ordered logistic regression analysis. Strategies adopted by farmers were found to be effective in general, and were found to have varying degrees of effectiveness. The study emphasized on the need to have proper mechanism to ensure steady supply of inputs at reasonable prices. With adequate government support, producer companies can emerge as important organization for the betterment of coconut farmers. Guidance and support for farm diversification and value addition may help farmers of perennial crops to cope with income risk and thus to improve their income and livelihood.