The evaluation of risk sources and risk management strategies on crop production in Thrace region

The agricultural sector plays an important role in both economic and social aspects and there are many risk factors present in it. This study aims to determine the risk factors present in the process from production to marketing the businesses involved in agricultural production in the Thracian region of Turkey come across, and to analyze the strategies they employ when met with risky and uncertain situations. For this purpose, 205 surveys were conducted face-to-face with the businesses that produce wheat and sunflowers, which are the main sources of income in the Thrace region. This study evaluates the production patterns of agricultural businesses, their information sources, their perception of risks and uncertainties that they may face in production, and their strategy behaviors related to the management of these risks and uncertainties. Data on the risk perception and risk management strategies of the producers were collected by using the Likert scale and then analyzed with structural equation modeling (SEM). According to the results of the explanatory and confirmatory factor analysis, the commonly perceived risks by the wheat and sunflower producers in the Thracian region are natural risks, technological risks, social and political risks. The strategies that the producers tend to implement are planned and conscious production, not incurring debt and product sale strategies. The perception of the risks of agricultural production by producers has a positive and significant effect on the implementation of risk management strategies. Furthermore, the implementation of the risk management strategies that are commonly perceived and emphasized by the producers is a factor that increases the revenues of the producers.