عوامل موثر بر ريسك و تمايل دامداران استان آذربايجان شرقي به بيمه كردن دامهايشان

Factors affecting risk, risk aversion, and tendency to insure livestock:A case study in Azarbaijan-e Sharghi province

Livestock farmers are facing various risks, two major ones being production risks and market risks. Production risk, which was the subject of the present study, goes back to various diseases and unexpected events. The study calculated the share of each factor in the risks during 1997, 1998, and 1999 in the area under study. The relationship between risk, risk aversion, and the tendency of livestock farmers to insure their stock, and the number livestock, farmerʹs age and literacy level, credits, and the share of livestock production in the farmerʹs livelihood were studied. The results showed that diseases accounted for 78% of the production risks. It was also found out that the risk coefficient for the farmers was 16.5% higher in 1999 as compared to that in 1997. In addition, the number of livestock as an independent variable had a statistically significant relationship with variables of risk aversion and farmersʹ tendency to insure their farms. Also, the above independent variables had statistically significant relationship with credits received from the banks. Livestock farmers whose livelihoods relied solely on livestock were proven to be more risk averting as compared to other farmers under study.