A Multivariate Probit Analysis of Factors Affecting Risk Management Strategy Choices in Dried Apricot Farming

Abstract

Dried apricot farms face many risks and uncertainties in Malatya, which is not only Turkey's but also the largest apricot production region in the world. Despite one of the major factors affecting farm efficiency, it was insufficient study on risk management in Malatya and even Turkey. The main purpose of the study was to measure the risk averse of dried apricot farms and to analyze of the factors affecting risk management strategies use of the dried apricot farms where an extensive production zone in Malatya. In the study, data collected from randomly selected 71 farms using questionnaires were used. The risk averse (attitude) coefficients of farmers were estimated by the “equally likely certainty equivalent” method. The factors affecting the risk management strategies choise were estimated using Multivariate Probit Model.