A Categorical Data Analysis on Risks in Agriculture
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This study compares farm operators’ risk perceptions and actual realization of risk attitudes revealed through off-farm labor, enterprise diversification, and use of contracts, crop insurance, and other types of insurance, using data from 2001 Agricultural Resource Management Survey (ARMS). Results from ordered logit model and multivariate probit models unexpectedly found that risk loving farmers are more likely to employ risk management strategies.