scholarly journals How Risk Attitudes Affect the Implementation of Good Agricultural Practices in Sugarcane Farming

Agro Ekonomi ◽  
2019 ◽  
Vol 30 (2) ◽  
Author(s):  
Annisa Fauzia Astari ◽  
Irham Irham ◽  
Arini Wahyu Utami
Keyword(s):  
Agricultural Practices ◽  
Risk Attitude ◽  
Likert Scale ◽  
T Test ◽  
Risk Attitudes ◽  
Risk Averse ◽  
Good Agricultural Practices ◽  
Ols Regression ◽  
Labor Welfare ◽  
Implementation Level

Indonesian Ministry of Agriculture issued Minister of Agriculture Regulations Number 53 in 2015 about Good Agricultural Practices for Sugarcane as an effort to increase production and productivity of sugarcane. The implementation of GAP on various commodities was differ since risk across commodities and risk attitude among farmers are varied. Hence, this study aims to analyze (1) the implementation level of Sugarcane GAP among farmers of the Wonolangan Sugar factory and (2) the influence of risk attitudes toward GAP implementation. The study was conducted on 102 randomly-selected farmers in Lumajang and Probolinggo Regency. The level of GAP implementation is measured by Likert scale with nine indicators of Sugarcane GAP. The level of GAP implementation is categorized into low, medium, and high based on the total score of GAP implementation obtained from each farmer. One-sample t-test is used to test the implementation level of GAP. Risk attitudes are measured with a Likert scale, as refers to Pennings and Garcia method. The influence of risk attitudes towards GAP implementation is analyzed using OLS regression. The result of t-test shows that the level of GAP implementation among sugarcane farmers is medium and high, and most farmers are risk-averse. Of the nine components used as indicators, seed preparation and labor welfare are in the medium category. Based on the OLS regression, risk-taker farmers have a lower GAP implementation than that of risk-averse farmers. Farmers' lack of knowledge about GAP guidelines, can be supported by the presence of socialization activities by sugar factories, extension workers, and related institutions.

The pricing strategy of dual-channel supply chain with risk-averse agents and heterogeneous preference consumers

Kybernetes ◽  
2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rufeng Wang ◽  
Zhiyong Chang ◽  
Shuli Yan
Keyword(s):  
Supply Chain ◽  
Risk Control ◽  
Optimal Strategies ◽  
Risk Attitude ◽  
Risk Attitudes ◽  
Risk Averse ◽  
Content Type ◽  
Dual Channel ◽  
Heterogeneous Preference ◽  
Dual Channel Supply Chain

PurposeThe purpose of this paper is to investigate the pricing strategy and the impact of agents' risk preference in a dual-channel supply chain in which both agents are risk-averse.Design/methodology/approachThe authors make use of the mean-variance (MV) method to measure the risk aversion of the agents and apply Stackelberg game to obtain the optimal strategies of the proposed models. Furthermore, the authors compare the optimal strategies with that in the benchmark model in which no agent is risk-averse.FindingsThe authors find that the pricing decisions can be divided into four categories according to the risk attitudes of the agents: the decisions that are independent of two agents' risk attitudes, the decisions that depend on only one agent’s risk attitude (i.e. depend on only manufacturer's risk attitude and depend on only retailer's risk attitude) and the decisions that depend on both agents' risk attitudes. In addition, the authors find that the retail price will be lower and the wholesale price in most cases will be lower than that in the benchmark when at least one agent's risk control is effective; the demand will be always increasing as long as one agent's risk control is effective. Furthermore, compared to the benchmark, a win-win strategy (i.e. Pareto improvement) for the supply chain members can be obtained in a certain range where the agents' risk controls are appropriate.Originality/valueThis research provides a theoretical reference for the managers to make the pricing decisions and the risk control in dual-channel supply chains with heterogeneous preference consumers.

Toward Considering Risk Attitudes in Engineering Organizations Using Utility Theory

2012 ◽  
Author(s):  
Douglas Van Bossuyt ◽  
Chris Hoyle ◽  
Irem Y. Tumer ◽  
Andy Dong ◽  
Toni Doolen ◽  
...  
Keyword(s):  
Decision Making ◽  
Risk Attitude ◽  
Expected Value ◽  
Utility Functions ◽  
Risk Attitudes ◽  
Risk Averse ◽  
Past Performance ◽  
Domain Specific ◽  
Specific Risk ◽  
Engineering Organizations

Design projects within large engineering organizations involve numerous uncertainties that can lead to unacceptably high levels of risk. Practicing designers recognize the existence of risk and commonly are aware of events that raise risk levels. However, a disconnect exists between past project performance and current project execution that limits decision-making. This disconnect is primarily due to a lack of quantitative models that can be used for rational decision-making. Methods and tools used to make decisions in risk-informed design generally use an expected value approach. Research in the psychology domain has shown that decision-makers and stakeholders have domain-specific risk attitudes that often have variations between individuals and between companies. Risk methods used in engineering such as Failure Modes and Effects Analysis (FMEA), Fault Tree Analysis (FTA), and others are often ill-equipped to help stakeholders make decisions based upon risk-tolerant or risk-averse decision-making conditions. This paper focuses on the specific issue of helping stakeholders make decisions under risk-tolerant or risk-averse decision-making conditions and presents a novel method of translating engineering risk data from the domain of expected value into a domain corrected for risk attitude. This is done by using risk utility functions derived from the Engineering-Domain-Specific Risk-Taking (E-DOSPERT) test. This method allows decisions to be made based upon data that is risk attitude corrected. Further, the method uses an aspirational measure of risk attitude as opposed to existing lottery methods of generating utility functions that are based upon past performance. An illustrative test case using a simplified space mission designed in a collaborative design center environment is included. The method is shown to change risk-informed decisions in certain situations where a risk-tolerant or risk-averse decision-maker would likely choose differently than the dictates of the expected value approach.

scholarly journals EFEKTIVITAS PENYULUHAN METODE SEKOLAH LAPANG TERHADAP PENERAPAN STANDAR OPERASIONAL PROSEDUR (SOP) BUDIDAYA ANGGREK TANAH (TERESTRIAL) DI KOTA TANGERANG SELATAN

2019 ◽  
Vol 11 (1) ◽  
pp. 29-45
Author(s):  
Hendrik Hexa ◽  
Ujang Maman ◽  
Junaidi J
Keyword(s):  
Agricultural Practices ◽  
P Value ◽  
Terrestrial Orchid ◽  
Chi Square ◽  
Critical Limit ◽  
Good Agricultural Practices ◽  
Operational Procedure ◽  
Field School ◽  
Terrestrial Orchids ◽  
Implementation Level

Orchid is one of floricultural crops that spreads widely throughout the world. This plant is popular because of its beauty with the variety of shapes and colors. Types of orchid that widely used as a cut flower are terrestrial orchids because these kinds of orchid have the long and strong stalks, a lot of buds, attractive shapes and colors, and long shelf life. The Field School of floricultural plant GAP-SOP (Good Agricultural Practices - Standard operational procedure) is an approach by using adult learning methods in enhancing the farmers’ knowledge, abilities, and skills in applying the principles of GAP (Good Agricultural Practices) floricultural plants through experiential learning, by using a land as the place to learn, monitoring regularly in a week or two weeks throughout the growing season, examining and discussing so that the farmers can understand and make their own decisions. The data analysis methods use Chi-Square (X2) that used to determine the relationship between the knowledge of orchid farmers that study in the field schools with the standard implementation of operational procedures of orchid cultivation in the city of South Tangerang. According the analysis of X2, between farmers' knowledge and the implementation in the SOP (Standard operational procedure) of terrestrial orchid cultivation by farmers, it obtains the results 14.273 of X2 count and 0.006 P-value. The results show there is a relationship between the knowledge and the implementation in the SOP of terrestrial orchid cultivation because the count value of X2 is greater than the table of X2 value (14.273> 9.488) and the P-value is less than the critical limit (0.006 <0.05). Knowledge authentically relates to the farmers application-level, the more knowledge level of the farmers, the higher of implementation level in the SOP of terrestrial orchid cultivation by farmers. Councelling effectiveness level of the Field School methods is on the criteria of median (quite effective).

scholarly journals The Willingness to Pay for a Hypothetical Vaccine for the Coronavirus Disease 2019 (COVID-19)

2021 ◽  
Vol 18 (23) ◽  
pp. 12450
Author(s):  
Yoshiro Tsutsui ◽  
Shosh Shahrabani ◽  
Eiji Yamamura ◽  
Ryohei Hayashi ◽  
Youki Kohsaka ◽  
...  
Keyword(s):  
Willingness To Pay ◽  
Large Scale ◽  
Severe Disease ◽  
Risk Attitude ◽  
Fixed Effect Model ◽  
Risk Attitudes ◽  
Risk Averse ◽  
Panel Survey ◽  
Effect Model ◽  
Willingness To Purchase

This study investigates how people in Japan perceived the severity of and probability of infection from coronavirus disease 2019 (COVID-19), and how their willingness to purchase a hypothetical vaccine depends on these perceptions and their risk attitudes. We conducted a large-scale panel survey three times between 13 March to 13 April 2020 in Japan. By analyzing the data, we found that the perception of COVID-19 became more serious. The estimation of the fixed effect model reveals that a person becomes more willing to pay for a vaccine as the person evaluates COVID-19 as a more severe disease, considers a higher probability of infection, and becomes more risk averse. Since the sensitivity of willingness to pay for the vaccine on risk aversion increased during the period, the change in risk attitude contributed to an increase in willingness through the sensitivity channel, while it decreased through the magnitude channel.

Food Safety on the Farm: Good Agricultural Practices and Good Handling Practices – Packing Operation Sanitation

EDIS ◽  
2017 ◽  
Vol 2017 (6) ◽  
Author(s):  
Jesscia A. Lepper ◽  
Aswathy Sreedharan ◽  
Renée Goodrich Schneider ◽  
Keith R. Schneider
Keyword(s):  
Food Safety ◽  
Fruits And Vegetables ◽  
Agricultural Practices ◽  
Good Agricultural Practices ◽  
Produce Safety ◽  
Foreign Countries ◽  
Safety Rule ◽  
Handling Practices ◽  
Voluntary Program ◽  
Federal Guidelines

Good agricultural practices (GAPs) and good handling practices (GHPs) encompass the general procedures that growers, packers and processors of fresh fruits and vegetables should follow to ensure the safety of their product. GAPs usually deal with preharvest practices (i.e., in the field), while GHPs cover postharvest practices, including packing, storage and shipping. This factsheet covers GAPs relating to packing operation sanitation. There are seven other Florida Cooperative Extension factsheets in the ‘Food Safety on the Farm’ series that focus on specific aspects of the GAPs program and how they relate to Florida crops and practices. Under the new Food Safety Modernization Act (FSMA), GAPs are a foundation of the Produce Safety Rule (PSR). Other than for round tomatoes in Florida (T-GAPs regulation), GAPs have mainly been a voluntary program. Additionally the PSR mandates all non-exempt operations to follow these new FSMA federal guidelines (6), but all exempt commodities and for those producers exporting to foreign countries, GAPs may still be required. Both the mandatory PSR and GAPs aim to reduce the foodborne illness burden associated with produce.

Risk Attitude and Corporate Investment under Output Market Uncertainty: Evidence from The Mekong River Delta, Vietnam

2016 ◽  
pp. 59-70
Author(s):  
Ninh Le Khuong ◽  
Nghiem Le Tan ◽  
Tho Huynh Huu
Keyword(s):  
Negative Relationship ◽  
Risk Attitude ◽  
Business Strategies ◽  
Risk Averse ◽  
Market Uncertainty ◽  
Firm Investment ◽  
Output Market ◽  
The Impact ◽  
The Relationship

This paper aims to detect the impact of firm managers’ risk attitude on the relationship between the degree of output market uncertainty and firm investment. The findings show that there is a negative relationship between these two aspects for risk-averse managers while there is a positive relationship for risk-loving ones, since they have different utility functions. Based on the findings, this paper proposes recommendations for firm managers to take into account when making investment decisions and long-term business strategies as well.

scholarly journals OPTIMAL OUTCOME SHARING WITH A CONSORTIUM OF CONTRACTORS

2015 ◽  
Vol 22 (5) ◽  
pp. 655-665 ◽  
Author(s):  
S. Mahdi HOSSEINIAN ◽  
David G. CARMICHAEL
Keyword(s):  
Risk Aversion ◽  
Risk Attitude ◽  
Risk Averse ◽  
Optimal Outcome ◽  
Original Solution ◽  
Project Outcome ◽  
Risk Neutral ◽  
Current Practices

Where a consortium of contractors is involved, there exist no guidelines in the literature on what the outcome sharing arrangement should be. The paper addresses this shortfall. It derives the optimal outcome sharing arrangement for risk-neutral and risk-averse contractors within the consortium, and between the consortium and a risk-neutral owner. Practitioners were engaged in a designed exercise in order to validate the paper’s propositions. The paper demonstrates that, at the optimum: the proportion of outcome sharing among contractors with the same risk-attitude should reflect the levels of their contributions; the proportion of outcome sharing among contractors with the same level of contribu­tion should be lower for contractors with higher levels of risk aversion; a consortium of risk-neutral contractors should receive or bear any favourable or adverse project outcome respectively; and the proportion of outcome sharing to a con­sortium of risk-averse contractors should reduce, and the fixed component of the consortium fee should increase, when the contractors become more risk-averse or the level of the project outcome uncertainty increases. The paper proposes an original solution to the optimal sharing problem in contracts with a consortium of contractors, thereby contributing to current practices in contracts management.

Cutoff Threshold Decisions for Classification Algorithms with Risk Aversion

2021 ◽  
Author(s):  
Andrea C. Hupman
Keyword(s):  
Risk Aversion ◽  
Risk Attitude ◽  
Classification Algorithm ◽  
Classification Algorithms ◽  
Risk Averse ◽  
Optimal Cutoff ◽  
Data Set ◽  
Risk Neutral ◽  
Bayes Algorithm ◽  
Cutoff Threshold

Classification algorithms predict the class membership of an unknown record. Methods such as logistic regression or the naïve Bayes algorithm produce a score related to the likelihood that a record belongs to a particular class. A cutoff threshold is then defined to delineate the prediction of one class over another. This paper derives analytic results for the selection of an optimal cutoff threshold for a classification algorithm that is used to inform a two-action decision in the cases of risk aversion and risk neutrality. The results provide insight to how the optimal cutoff thresholds relate to the associated costs and the sensitivity and specificity of the algorithm for both the risk neutral and risk averse decision makers. The optimal risk averse threshold is not reliably above or below the optimal risk neutral threshold, but the relation depends on the parameters of a particular application. The results further show the risk averse optimal threshold is insensitive to the size of the data set or the magnitude of the costs, but instead is sensitive to the proportion of positive records in the data and the ratio of costs. Numeric examples and sensitivity analysis derive further insight. Results show the percent value gap from a misspecified risk attitude increases as the specificity of the classification algorithm decreases.

Principal operators' farm risk attitudes in hot and cold climates

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ahmad Zia Wahdat ◽  
Michael Gunderson
Keyword(s):  
Risk Mitigation ◽  
Risk Attitude ◽  
Cold Climate ◽  
Risk Attitudes ◽  
Ordered Logit ◽  
Climate Classification ◽  
Content Type ◽  
Hot Climate ◽  
The Us ◽  
The Government

PurposeThe study investigates whether there is an association between climate types and farm risk attitudes of principal operators.Design/methodology/approachThe study exploits temperature variation in the diverse climate types across the US and defines hot- and cold-climate states. Ordered logit and generalized ordered logit models are used to model principal operators' farm risk attitudes, which are measured on a Likert scale. The study uses two datasets. The first dataset is a 2017 survey of US large commercial producers (LCPs). The second dataset provides a Köppen-Geiger climate classification of the US at a spatial resolution of 5 arcmin for a 25-year period (1986–2010).FindingsThe study finds that principal operators in hot-climate states are 4–5% more likely to have a higher willingness to take farm risk compared to principal operators in cold-climate states.Research limitations/implicationsIt is likely that farm risk mitigation decisions differ between hot- and cold-climate states. For instance, the authors show that corn acres' enrollment in federal crop insurance and computers' usage for farm business are pursued more intensely in cold-climate states than in hot-climate states. A differentiation of farm risk attitude by hot- and cold-climate states may help agribusiness, the government and economists in their farm product offerings, farm risk management programs and agricultural finance models, respectively.Originality/valueBased on Köppen-Geiger climate classification, the study introduces hot- and cold-climate concepts to understand the relationship between climate types and principal operators' farm risk attitudes.

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