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Comparing Risk Perceptions and Risk Management in Organic and Conventional Dairy Farming: Empirical Results From Norway

Flaten, Dr Ola; Lien, Dr Gudbrand; Koesling, Matthias; Valle, Dr Paul S. and Ebbesvik, Martha (2004) Comparing Risk Perceptions and Risk Management in Organic and Conventional Dairy Farming: Empirical Results From Norway. In: Cafiero, Carlo and Cioffi, Antonio (Eds.) Income stabilization in agriculture. The role of public policies, Edizioni Scientifiche Italiane, pp. 429-449.

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Online at: http://wpage.unina.it/cafiero/proceedings_ESI.pdf

Summary

This study was conducted to explore organic and conventional dairy farmers' perceptions of risk and risk management, and to examine relationships between farm and farmer characteristics, risk perceptions, and strategies. The data originate from a survey of conventional (n=363) and organic (n=162) dairy farmers in Norway. Organic farmers had the least risk averse perceptions. Institutional and production risks were perceived as primary sources of risk, with farm support payments at the top. Compared to their conventional colleagues, organic farmers gave more weight to institutional factors related to their production systems. Conventional farmers were more concerned about costs of purchased inputs and animal welfare policy. Organic and conventional farmers' management responses were more similar than their risk perceptions. Financial measures such as liquidity and costs of production, disease prevention, and insurance were perceived as important ways to handle risk. Even though perceptions were highly farmer-specific, a number of socio-economic variables were found to be related to risk and risk management. The primary role of institutional risks implies that policy makers should be cautious about changing policy capriciously and they should consider the scope for strategic policy initiatives that give farmers some greater confidence about the longer term. Further, researchers should pay more attention to institutional risks.


EPrint Type:Conference paper, poster, etc.
Type of presentation:Paper
Keywords:risk, organic farming, conventional farming, survey, Norway, dairy farming
Subjects: Food systems > Policy environments and social economy
Farming Systems > Social aspects
Farming Systems > Farm economics
Research affiliation: Norway > NILF - Norwegian Agricultural Economics Research Institute
Norway > NORSØK - Norwegian Centre for Ecological Agriculture
Norway > Bioforsk - Norwegian Institute for Agriculture and Environmental Research > Bioforsk Organic Food and Farming Division
Norway > NVI - National Veterinary Institute
Related Links:http://wpage.unina.it/cafiero/proceedings_ESI.pdf
Deposited By: Koesling, Matthias
ID Code:8700
Deposited On:02 Apr 2007
Last Modified:12 Apr 2010 07:33
Document Language:English
Status:Published
Refereed:Peer-reviewed and accepted
Additional Publishing Information:The article has been published with the same title in:
Livestock Production Science
Volume 95, Issues 1-2 , 1 August 2005, Pages 11-25
See: www.sciencedirect.com

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