Question

Explain the role of risk and uncertainty in an analysis of the economic behavior of peasant farmers. What kinds of questions does this analysis enable us to answer?

Answe keyr: Discussion why peasant production decisions are rational. See the section in the text that discusses sharecropping.

Answer 1

ANSWER: Agriculture is quite uncertain sector for an any economy and it is not devoid of risk and uncertainty. Agriculture is very important basic primary industry through which other sector of economy get benefits and upsurge, but this industry where many farmers must do hard work to grow the different kind of crops and wait for the fruitful production of the crops. This agriculture is very important from economic analysis of behaviour of farmer who almost sacrifice their whole life and provide foods and stability to economy but farmer and agriculture both must be based on the different factor which play important role to grow and prosper the agriculture and related allied activities. In those factor risk and uncertainty play a very essential role to affect the production of different crop. Risk and uncertainty affect the decision of farmers who want to get different crops from the land, risk of flood heavy rain, monsoon, irrigation and new technology related development affect the quality and quantity of production where farmer's decision related to risk and uncertainty. These are the major risk related factor which pressures the farmer to think decisively which crop suit to affect the level of crop production. This led them to grow single crop and more many time most of farmers take decision which are right and suitable to need of hour. Previously it was noticed that farmers are not so much educated to take decision but now day many of educated people also do agriculture and reduce the of uncertainty of rain, irrigation and adopt new technology which help them to grow more and major crop without any hurdles This kind of analysis suggest that traditionally where farmer are not so much educated and they had to face the risk and uncertainty, but now day with help of call centre related to agriculture new ways of irrigation, further development of soil fertility they are very much aware and take the necessary action to grow as many crops as possible in the same year where they had to take single or two crops in a year