RISK MANAGEMENT STRATEGIES & DECISION MAKING IN DRY-LANDS OF PRAKASAM DISTRICT OF ANDHRA PRADESH

Abstract

Farmer’s make decisions every day that affect farming operations many of the factors that affect the decisions they make cannot be predicted with complete accuracy with growing commercialization in agriculture the magnitude of loss due to unfavorable eventualities is increasing. Farmer’s need to understand risk and have risk management skills for better anticipates problems and reduces consequences. Decision making is the principal activity of management; all decisions have outcomes or consequences. However, in most situations the outcome of a decision cannot be predicted.

Once farmers have decided to engage in farming activities, the production strategy selected is an important means of mitigating the risk of crop failure. Traditional cropping systems in many places rely on crop diversification and mixed farming. Crop diversification and intercropping systems mean to reduce the risk of crop failure due to adverse weather events, crop pest or insect attacks. Risk mitigation strategies are often used in combination with one another, because no single strategy can cover all of the risk likely to be encountered. Here farmer’s need to consider the risks simultaneously and to

Agricultural producers should not limit their risk management strategies simply to lessening and off-setting the problems caused by weather and natural events.

Key words: Diversification, Decision making, Risk mitigation strategies