Recent Findings from University of Agriculture Faisalabad Provides New Insights into Risk Management (Land Ownership and Catastrophic Risk Management in Agriculture: The Case of Khyber Pakhtunkhwa Province of Pakistan)

Insurance Daily News

2019 NOV 22 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- Fresh data on Risk Management are presented in a new report. According to news originating from Faisalabad, Pakistan, by NewsRx correspondents, research stated, “The agricultural sector faces numerous threats arising mainly due to adverse weather conditions. These climatic risks are usually beyond the control of farmers and are mostly uncertain.”

Our news journalists obtained a quote from the research from the University of Agriculture Faisalabad, “Managing these risks and uncertainties is crucial in an effort to alleviate poverty and ensure food security for the masses who depend on farm sector for their livelihoods. Land tenure agreements along with other socioeconomic factors play an important role in farmers’ decisions to adopt risk coping tools. This study is aimed at investigating the effect of tenure agreements on farmers’ decisions to adopt three risk coping tools, namely off-farm diversification, precautionary savings and credit reserves, to mitigate climatic risks in Khyber Pakhtunkhwa Province of Pakistan. The results revealed that the adoption of traditional risk coping tools is relatively higher among landless tenants when compared with owner-cum-tenant farmers and owner farmers. However, for formal risk coping tools (credit reserves) tenant farmers have significantly lower access when compared with owner farmers. Owner farmers, on the other hand, can access financial institutions to lessen their burden of risks. The findings of the logit models also indicated the significant role of land ownership status, along with perceptions of risk sources and attitude towards risk, on farmers’ decisions of adopting off-farm diversification and credit reserves.”

According to the news editors, the research concluded: “Therefore, it is suggested that financial institutions should facilitate tenant farmers’ access to credit facilities by simplifying and shortening the credit sanction procedure.”

For more information on this research see: Land Ownership and Catastrophic Risk Management in Agriculture: The Case of Khyber Pakhtunkhwa Province of Pakistan. International Journal of the Commons, 2019;13(2):881-891. International Journal of the Commons can be contacted at: Igitur, Utrecht Publishing & Archiving Services, Postbus 80124, Urtrecht, 3508 Tc, Netherlands.

The news correspondents report that additional information may be obtained from R. Ullah, University of Agriculture, Faisalabad, Pakistan. Additional authors for this research include M.A. Kamran, G.P. Shivakoti and F. Zulfiqar.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.5334/ijc.896. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.