Economic Sustainability and Multiple Risk Management Strategies: Examining Interlinked Decisions of Small American Farms

Sudip Adhikari and Aditya Khanal
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Sudip Adhikari: Department of Agricultural and Environmental Sciences, Tennessee State University, Nashville, TN 37209, USA

Sustainability, 2021, vol. 13, issue 4, 1-13

Abstract: Economic viability of small farms and farming businesses depends on multiple factors. These farms have limited production and financial resources to maintain their operation. Therefore, to sustain farming, adopting appropriate risk management strategies is a pivotal decision for small farmers. We surveyed Tennessee’s small farms and utilized multivariate probit models to study factors influencing the adoption of various risk management strategies. Our findings suggest that the decisions related to the adoption of risk management strategies are significantly interlinked. Along with factors representing the operator’s age, education, and farm operator’s income and land holdings, we also found that the government incentives (payments), smartphones, and farmers’ continuation plan significantly influence the strategic decisions of adopting risk management strategies.

Keywords: risk management; small farms; sustainability challenges; correlated decisions; small farm business; Tennessee (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (5)

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