Risk behavior of sesame farmers in Jigawa state of Nigeria

The present research empirically determined the risk behavior of sesame producers in Jigawa State of Nigeria using cross-sectional data collected via structured questionnaire complemented with interview schedule from 97 sesame farmers sampled through multi-stage sampling design. The collected data were analyzed using a multiple regression model (OLS), safety-first approach technique and logit regression model. The empirical findings showed most of the farmers to be apprehensive of risk, an indication of acceptance of a lower average income for lower uncertainty among the sesame farmers in the studied area. Furthermore, the reason for production risk apprehension among the farmers was due to the high cost of production inputs. However, few idiosyncratic variables were found to encourage farmers to a have preference for production risk. Therefore, the development procedure of risk management strategies should consider farmers’ risk attitude more than concentration on their average or expected income. Also, the study suggests the need for government and non-governmental institutions to provide adequate credit and ensure timely delivery of it so that the farmers can neutralize the sharp collusive price forces created middlemen in the input and output markets in the studied area.