Production risk assessment: evidence from cauliflower growers of Mymensingh district in Bangladesh

Abstract

Risk and inefficiency are crucial elements that affect farmers’ decisions about farm management, investment and production. A total of 80 farmers were selected from Mymensingh district of Bangladesh using purposive random sampling method. This study uses a stochastic frontier model with a risk and an inefficiency function to evaluate the production risk and inefficiency of cauliflower farmers in Bangladesh. Study showed that significant production risk exists in Cauliflower farming. The results also reveal that seed and irrigation cost have positive and significant effect on cauliflower farming. Furthermore, using more seed and fertilizer increase the risk, although the size of the farm has the opposite impact. Education and training have a positive impact and boosts farm efficiency. It is advised that more technical skill on the best inputs usage, education and training be provided to the farmers in order to reduce risk and boost efficiency.

Ann. Bangladesh Agric. 28(2): 25-36