Flood Hazards and Farm Based Agricultural Production Risks Management Practices in Flood Prone Areas in Punjab, Pakistan

Abstract

Abstract Climate induced disasters more specifically the floods have caused severe damages to agriculture sector in Pakistan. These climatic risks have constrained farming community to adopt numerous risk management strategies to overcoming such risks. This research work attempted to examine the association of risk management tools with farmer’s perception of risk, risk averse attitude and various socioeconomic factors. The study employed the sample data of 398 farmers from flood prone two districts of Punjab, Pakistan. To investigate the association of dependent and independent variables this study used the multivariate probit model. Results of the study illustrated as heavy rains and floods consider not significant source of risk for large farmers in the study area while for small farmer these indicated as high risks as most of small farmers were more risk averse. Estimates of multivariate probit model interpreted as age of farmer, heavy rains risk perception and landholding size were positively relationship with risk management tool of depletion of assets. Farmers education, off-farm income, age and risk averse attitude of farmer were positive whereas experience of farming were negatively linked with reduction of consumption. Furthermore, experience of farming, risk averse attitude, heavy rains and floods risk perception were positively association with diversification adoption. Flood prone farming community of the study area is more vulnerable to these climatic risks and also relying traditional strategies for risk management. There is need of some specific agriculture base measure such as crop insurance, extending formal credit and flood base measure as pre-flood warning system, flood rescue management and post flood rehabilitation to overcome these climatic risks.