Potato Grower's Risk Perception: A Case Study in Ardabil Province of Iran

The aim of this study was to examine potato grower's perceptions of risk sources and risk management strategies and their risk management behavior. A Survey research method was used in this study. The data originated from a sample of potato growers (n= 128) of Ardabil Province in the cropping year of 2013. The respondents were divided into two groups of Less Risk-Averse (LRA) and More Risk-Averse (MRA). Results show that more than half of the respondents were MRA. In general, potato price, marketing and yield were important sources of risk. The MRA farmers perceived price, yield, input costs and subsidy elimination as highly important sources of risk. Change in farming practices times, sharing farm machinery and hedging were important perceived strategies. LRA farmers marked more importance to management strategies than their counterparts. Except for a few strategies, there was consistency between the growers’ perception and management behavior. The results also show that there were significant relationships between farmers’ perception of strategies and their application. The results have implications for agricultural policy makers, extension and advisory services on the brink of subsidy targeting policy in Iran.