A number of empirical studies find that farmers are risk-averse, though only moderately in many cases. There is also evidence to show that farmers' risk aversion results in cropping patterns and input use designed to reduce risk rather than to maximize income. Farmers adopt a number of strategies to manage and cope with agricultural risks. These include practices like crop and field diversification, non-farm employment, storage of stocks and strategic migration of family members. There are also institutions ranging from share tenancy to kinship, extended family and informal credit agencies. One major obstacle to risk sharing by farmers is that the same type of risk can affect a large number of farmers in the region. Empirical studies show that the traditional methods are not adequate. Hence there is a need for policy interventions, especially measures that cut across geographical regions. Policies may aim at tackling agricultural risks directly or indirectly. Examples of risk-specific policies are crop insurance, price stabilization and the development of varieties resistant to pests and diseases. Policies which affect risk indirectly are irrigation, subsidized credit and access to information. No single risk-specific policy is sufficient to reduce risk and is without side-effects, whereas policies not specific to risk influence the general situation and affect risks only indirectly. Crop insurance, as a policy measure to tackle agricultural risk directly, deserves careful consideration in the Indian context and in many other developing countries — because the majority of farmers depend on rain-fed agriculture and in many areas yield variability is the predominant cause of their income instability.
Syllabus Connection
NCERT Connection
Ch.1: Sociology and Society
Sociology • Class 11 • Introducing Sociology
Related PYQs in CSAT
A shopkeeper employs a delivery boy and gives him a motorcycle for home delivery. For every delivery, the boy is given 5. At the end of the day, he also gets 2 for every kilometre of the distance covered in the day. The boy wants to earn more than 500 a day, but does not want to travel more than 100 km. Which of the following numbers of deliveries would definitely meet his target?
There are two chemicals which do not react with each other. A container contains 10 litres of the chemical A. One litre of this chemical is removed from it and one litre of the chemical B is poured. Then one litre of the mixture is removed from the container and one litre of B is poured. If this process of replacing one litre of the mixture by one litre of B is performed once more, then what is the volume of B that is present in the container approximately (in percentage)?
Three partners A, B and C entered into a business. A invested one-third of the capital for one-third duration. B invested one-fourth of the capital for one-fourth duration. C invested the remaining capital for the whole duration. Out of a profit of 17,000, how much profit will C get?
With reference to 'circular letters', which of the following statements is/are correct? 1. Circular letters are usually addressed to a group of people. 2. Non-standard and customized content is typical of circular letters. 3. Circular letters are used to intimate appraisals and increments of employees within organisations. 4. Circular letters are less cost-effective than personalised and specific recipient-directed letters. Select the answer using the code given below.
You are required to design a 'questionnaire' to be filled on-location by visitors, based on the following objective while writing a report: 'To determine the feasibility of setting up a family-oriented vacation resort in the vicinity of a lake destination in the mountains' Which of the following heads would you include in the questionnaire to make it most appropriate for your purpose? 1. Size of family 2. Budget 3. Number of earners in the family 4. Food allergies and dietary restrictions Select the answer using the code given below.