Characteristics Of Farmers Behavior Toward The Risk Of Seaweed Farming In The Bungin Permai Village, South Konawe Regency, Indonesia

Research Article
Ine Fausayana., Fiti Susanti., Rustan Ari., Rayuddin and Arimansyah
DOI: 
http://dx.doi.org/10.24327/ijrsr.2018.0906.2255
Subject: 
science
KeyWords: 
Risk-averse, risk neutral, age, education, family dependents
Abstract: 

This research was conducted at Bungin Permai Village, South Konawe Regency. The purpose of this research was to determine the behavioral characteristics of farmers toward the risk of seaweed farming. Samples in this study were taken by using simple random sampling method. The numbers of samples in this study were 37 seaweed farmers. The analysis technique used is the quadratic utility function to analyze farmer’s behavior against the risks. The analysis showed that characteristics toward age-based risk for all behavioral categories are dominated by productive age categories. The behavioral characteristics based on education for risk averse behavior (dominated by the primary school education category (56.25%), based on farmers’ experience in farming to risk averse behavior is dominated by farming experience category with > 10 years farming experience (62.5%). Behavioral characteristic based on construction size, risk-averse and risk neutral behavior is dominated by a narrow category, with 81.25% and 100% respectively, whereas for risk lover behavior, is dominated by the moderate category (100%). Characteristics of a risk-based behavior are dominated by the low-income category (75%), for risk-lover is dominated by high revenue category (100%), and for neutral risk behavior is dominated by a very low income (66.7%).