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Attitudes of Vegetable Farmers towards Risk in the Jordan Valley

Mahmoud Ali Salem Hindi.

Abstract
The main objective of this study was to examine the vegetable farmers' attitudestowards risk in the Jordan Valley. In order to measure risk attitudes, utility functions forvegetable farmers in the Jordan Valley were estimated by using the Von Neumann ?Morgenstern model. From the estimated utility functions, the risk attitudes coefficient for eachfarmer was measured. Of the total random sample of 200 farmers from the middle Ghor in theJordan Valley, a purpose sample of 50 vegetable farmers was proportionally selected, i.e. 13farmers (26%), 15 farmers (30%), and 22 farmers (44%) fell into the risk avert, risk neutral andrisk taker categories, respectively. To analyze the relationship between farmers' personalcharacteristics such as age, education, farm size, family size, experience in agriculture and theirrisk attitudes, a multiple linear regression model was used. Linear, semi-log, and double-logequations were used. Of these, the semi-log equation proved the best. The regression results ofthe study indicated that the coefficient of farm size (X3) and the coefficient of family size (X5)were statistically significant at the 5% level of significance.

Key words: Vegetable farmers, Coefficient of farm size, Jordan Valley.



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