Risk and Risk Management in Organic and Conventional Dairy Farming: Empirical Results from Norway

Gudbrand D. Lien, Ola Flaten, Martha Ebbesvik, Matthias Koesling and Paul Steinar Valle

No 24382, 14th Congress, Perth, Western Australia, August 10-15, 2003 from International Farm Management Association

Abstract: The objective of this study was to provide empirical insight into dairy farmers' goals, relative risk attitude, sources of risk and risk management responses. The study also examines whether organic dairy farming, leads to important risk sources not experienced in conventional farming and, if so, how those extra risks is managed. The data originate from a questionnaire survey of conventional (n=370) and organic (n=160) dairy farmers in Norway. The results show that organic farmers have somewhat different goals than conventional farmers, and that the average organic farmer is less risk averse. Institutional risk was perceived as the most important source of risk, independently of conventional or organic production system, while organic farmers indicated greater concern about forage yield risk. Keeping cash on hand was the most important strategy to manage risk for all dairy farmers. Diversification and different kinds of flexibility was regarded as a more important risk management strategies among organic than conventional farmers.

Keywords: Livestock Production/Industries; Risk and Uncertainty (search for similar items in EconPapers)
Pages: 13
Date: 2003
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Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:ifma03:24382

DOI: 10.22004/ag.econ.24382

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