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8700: 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. Paper presented at 86th EAAE Seminar “Farm income stabilisation – what role should public policies play?”, Anacapri, Italy, 21.-22. 10. 2004; Published in Cafiero, Carlo and Cioffi, Antonio, Eds. Income stabilization in agriculture. The role of public policies, page pp. 429-449. Edizioni Scientifiche Italiane.

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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.

Document Language:English
Keywords:risk, organic farming, conventional farming, survey, Norway, dairy farming
Subject Areas: 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
Total budget (Euro):0
Orgprints ID Number:8700
Contact:Koesling, Matthias
Deposited On:02 April 2007
EPrint Type:Conference paper
Published?:Published
Online at:http://wpage.unina.it/cafiero/proceedings_ESI.pdf
Peer Review Status: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
Related Links:http://wpage.unina.it/cafiero/proceedings_ESI.pdf

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