Farmer Behavior on the Risk of Garlic Farming on the Slopes of Mount Lawu, Karanganyar Regency, Central Java

Department of Agribusiness, Universitas Muhammadiyah Yogyakarta, Indonesia

^* Corresponding author: sriyadi_s@yahoo.co.id

Abstract

Garlic farming is faced with various risks, such as production failure and price fluctuations, which affect farmers’ behavior in dealing with these uncertainties. Generally, farmers tend to be reluctant to take risks with these potential risks. Socio-economic factors impact the risk-taking farmers behavior. This research aims to (1) identify the financial risks associated with garlic cultivation, (2) analyze farmers’ behavior to these risks, and (3) examine the socioeconomic factors that influence farmers’ behavior to the risk of garlic cultivation. The study was conducted in Karanganyar Regency, Central Java. A coefficient of variation was used to analyze the degree of risk associated with farming income. Quadratic utility functions were employed to analyze farmers’ behavior in response to risk. Multiple linear regression was applied to examine socioeconomic factors that affect farmers’ behavior regarding farming risks. The results showed that most farmers were reluctant with garlic risk farming, The land size, farmers’ age, and the number failures all contribute to aversion to risk. Farmers with higher levels of education, greater experience in garlic cultivation, larger household sizes, and higher farming incomes tend to be less risk averse. The availability of information on planting time will provide greater benefits.