Evaluating Effects of Risk Management Strategies on Agricultural Output in Soy, Uasin Gishu County

Abstract

The study evaluates the effects of risk management strategies on agricultural output in Soy Sub County, Uasin Gishu. Aim of the study was to establish risks facing farmers and determine risk management strategies deployed to counter these risks and assess the effectiveness of these strategies in meeting the overall objectives. The study was conducted to narrow the gap that exist between knowledge of the causes of agricultural risks and the effectiveness of these risks management strategies. This is because agriculture was considered riskier enterprise hence there was need of more research to update farmers on how to deal with these risks in case of occurrence, as they are unavoidable. Survey method was used as it involved data collection from a pre-defined group of respondents to gain information and insight on risks, effects of risks and management strategies employed. Forty one farmers were sampled randomly. In data analysis, descriptive statistics and Pearson’s correlation was used with the help pf statistical Packaged for Social Sciences (SPSS). The results indicated that there was a positive correlation between level of output and training of employees, increase in level of income, risk-bearing capacity and farmers ‘attitude towards risk. Crop failure, equipment and machinery failure, input cost and rainfall variability correlated negatively with the level of output. The study recommends that farmers should fully control the development status of their risk management and be adaptable; national government and county government should check how they could support implementation of efficient and effective risk management strategies in agriculture by carrying out various policy implementations and activities.