RISK PERCEPTION AMONG FARM HOUSEHOLDS IN NORTH CENTRAL REGION OF NIGERIA: A LOWER PARTIAL MOMENT APPROACH

Abstract

This study investigated the perception of production and price risk by farm households and the factors
that influence their level of perception in North Central Nigeria. The study attempted to capture the
opinion of farmers about the quantity of crops they expect to harvest at the end of the season, and the
prices they also expect for each of the crop cultivated. It was confirmed that the households do have
an opinion for the quantity of crops outputs cultivated and also for the price they expect at the end of
every season. The study established that farm households do give negative allowances regarding the
quantity expected of a crop for a particular land cultivated, this is also true for prices expected. In other
words farm households were found to be aware of the possibility that the final output they get from
their farming activity may not commensurate with the inputs invested and so therefore expect less than
what should be the potential. Furthermore, it was discovered that household crop specific risk percep-
tion varies within the region. Majority of the farm households perceived higher price risks for sorghum,
rice, and yam crops.