Scholarly Journal of Agricultural Science Vol. 7(2), pp. 50-56 March, 2017
Available online at http:// www.scholarly-journals.com/SJAS
ISSN 2276-7118 © 2016 Scholarly-Journals
Analysis of Agricultural business risks management strategies among rural Farmer entrepreneurs in Imo State, Nigeria
Osuagwu, C.O.1, Chikaire, J.U.*2, Anaeto, F.C.2 and Oparaojiaku, J.O.1
1Department of Agricultural Extension and Management, Imo State Polytechnic, Umuagwo, Owerri, Imo State;
2Department of Agricultural Extension, Federal University of Technology, Owerri, Imo State, Nigeria.
The study was aimed at identifying sources of agricultural risks faced by entrepreneurial farmers in their changing environment and the coping strategies employed. Multi stage sampling technique was used to select 250 farmers affected by risks and uncertainty in agribsiness. Questionnaire was used to collect data and descriptive tools such as percentage and mean were used to analyze the data. The study revealed that farmers faced myriads of risks in food production business. These risks were grouped into production/environmental risks, marketing risks, financial risks, legal risks, and human/personnel risks. The production risks faced by farmers included crop damage with a high mean of 3.63, flooding (M = 3.44), drought (M = 3.35), poor yield (M=3.59), pests/diseases outbreak (M=2.70). The human/personnel risks included equipment breakdown (M = 3.89), illness (M = 3.2.90), poor quality control (M = 3.56), poor farm planning (M = 2.78) among others. The financial risks were insufficient cash to start business, low profit, increased input cost, higher interest rates, among others. To cope, the farmers employed the following strategies – use of drought resistant varieties, diseases resistant variety, production diversification and many more. Government should subsidize inputs and make farming attractive to young ones.
Agribusiness, risks, weather, management, entrepreneur.