Risk Management Behaviour of Dry Farming Households in Kurnool, Nandyal and Anantapur District of Andhra Pradesh, India
Mounika Metla
*
Department of Agricultural Economics, Institute of Agricultural Sciences, Banaras Hindu University, Varanasi-221005, India.
O.P. Singh
Department of Agricultural Economics, Institute of Agricultural Sciences, Banaras Hindu University, Varanasi-221005, India.
*Author to whom correspondence should be addressed.
Abstract
Dryland agriculture is vulnerable to a variety of threats, including climate change, shifting market prices, pest and disease infestations, and insufficient institutional support. The current study, "Economic Analysis of Risk and Resilience Among Dry Farming Households in Andhra Pradesh," looks into how farmers involved in dryland farming handle risks and build resilience. The investigation used the Risk Aversion Index to assess the extent of risk aversion among farmers of various farm sizes and socioeconomic categories. The results of this study show that most farmers have moderate to high levels of risk aversion, generally relying on traditional coping techniques and market information to mitigate vulnerabilities. Small and marginal farmers experience greater income gaps than their medium and large counterparts. The study underscores the need to strengthen farmers’ adaptive capacities by enhancing their access to climate information, financial services, and market opportunities. These insights offer a strong foundation for policymakers and development agencies to implement targeted strategies that promote resilience and sustainable livelihoods in dryland farming systems.
Keywords: Dry farming, risk aversion, risk management behaviour, socio-economic factors, non-farm assets, farm size, climatic uncertainty, income vulnerability, regression analysis, farmer resilience