Risk Management Strategies Perceived by Tomato Producing Smallholder Farmers the Case of Dugda District, East Shewa Zone, Oromia, Ethiopia

Abstract

Managing risk is an important part of farming and its management is a concern for those governments which include this as one of their agricultural policy objectives. For effective risk management strategies to be taken, farmers’ perception on risk management strategy in agriculture is important. Farmers have to find ways of risk management strategies and protecting themselves from the uncertainties of the future. This study analyzed the perceived important risk management strategies of tomato producing smallholder farmer using data collected from 167 tomato producing smallholder farmers from four kebeles of Dugda district of the East Shewa zone, central rift valley of Ethiopia, analyzed (using Descriptive statistics, likert scale and Principal component analysis) of primary data collected from 167 tomato producing smallholder farmers from four kebeles of Dugda district. Principal component analysis was used in data reduction to identify a small number of components related to important risk management strategies perceived by the surveyed smallholder farmers in the study area. Results show that using principal components analysis, important risk management strategies were identified. Principal Components (PCs) explained that 58.2% of the variations were extracted. Pest and disease management, alternative market, income diversification and training risk management strategies were perceived as important risk management strategies by the surveyed smallholder farmers.

Keywords: Risk Management, Smallholder farmer, PCA, Dugda District

DOI: 10.7176/JRDM/86-01

Publication date:June 30^th 2022