Risk Factor in Agricultural Sector: Prioritizing Indian Agricultural Risk Factor by MAUT Method

Risk Factor in Agricultural Sector: Prioritizing Indian Agricultural Risk Factor by MAUT Method

Suchismita Satapathy (KIIT University, India)
Copyright: © 2020 |Pages: 15
DOI: 10.4018/978-1-7998-1718-5.ch009

Abstract

Occupational safety is a big issue of discussion for agricultural workers. The methods of working in the field in extreme climate totally depends on the environmental factor. Due to change in weather conditions, prices at the time of harvest could drop, hired labour may not be available at peak times, machinery and equipment could break down when most needed, animals might die, and government policy can change overnight. All of these changes are examples of the risks that farmers face in managing their farm as a business. All of these risks affect their farm profitability. Heavy rains and drought could also damage or even wipe out crops. Another source of production risk is equipment. The most common sources of risk factor are weather, climate, diseases, natural disasters, and market and environmental factor shocks. Agricultural workers need sufficient precaution and safety measures at the time of field and machine work to minimize risk factor. So, in this chapter, an effort is taken to prioritize safety majors by MAUT method.
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Introduction

The utilization of genetically modified crops and Organic farming will improve the fertility of the land and improve the crop production rate of Indian farmers. But still, the small and medium agricultural sector is very poor and neglected, and by following the traditional method of crop production. Risk and uncertainty are inherent to agriculture. The most common sources of risk factors are the weather, climate, diseases, natural disasters, the downturn of agricultural market and environmental factors. Some risks have become more severe in recent years due to climate change and the volatility of food prices. nominal farmers’ livelihoods are especially vulnerable. They may have difficulty in finding and organization risk and fail to benefit from investment opportunities that could progress their farming businesses and strengthen household resilience. Farmers live with risk and make decisions every day that affect their farming operations. Due to changes in weather conditions prices at the time of harvest could drop; hired labor may not be available at peak times; machinery and equipment could break down when most needed; draught animals might die, and government policy can change overnight. All of these changes are examples of the risks that farmers face in managing their farm as a business. All of these risks affect their farm profitability. Heavy rains and Draught without rain could also damage or even wipe outcrops. Another source of production risk is the nonavailability of modern equipment.

The price of farm products is affected by the supply of a product, demand for the product, and the cost of production. The technology, assets, and labor or human factor is also a very important issue. Contacts and exposure with the chemicals, fertilizers), the exposure to soil, dust, the contamination due to bacteria, exposure to animals, cattle's, injury due to hand tools and musculoskeletal disorders are the most important injuries faced by farmers. Indian agricultural business sector is expected to be the most important driver of the Indian economy within a few years because of high investments for agricultural facilities, warehousing, and cold storage. The utilization of genetically modified crops and Organic farming will improve the fertility of the land and improve the crop production rate of Indian farmers. But still, the small and medium agricultural sector is very poor and neglected, and are following the traditional method of crop production. Due to the high cost of equipment unable to purchase and the conventional method of farming gives them many physical problems like lungs problem due to exposure to dust, and musculoskeletal disorders.Apart from this, Financial or economic risk plays an important part, when money is borrowed to finance the farming business. This risk can be caused by uncertainty about future interest rates, a lender’s willingness and ability to continue to provide funds when needed, and the ability of the farmer to generate the income necessary for loan repayment. Human risk factor is the major risks to the farm business caused by illness or death and the personal situation of the farmer family. Accidents, illness, and death can disrupt farm performance. Due to high cost of equipment farmers unable to purchase modern equipments and the conventional method of farming gives them many physical problems like lungs problem due to exposure to dust, and muskulateral disorders.

Extreme weather conditions, the heavy workload during their working procedure gives them health and economic problems in farming. So to attain better efficiency of performance and to improve the productivity of the worldwide farmers in the agricultural sector it is essential to design the tools and equipment to make their work easy and risk-free but the design must be done keeping in consideration the farmer’s capability and limits. The tools and equipments design should be able to provide more human comfort, of good quality, more output focused and reduce the musculoskeletal injury.By avoiding all these factors risk factors will reduce.

Key Terms in this Chapter

Platform for Agricultural Risk Management (PARM): PARM has the global mandate to contribute to sustainable agricultural growth: boost rural investment, reduce food insecurity, and improve resilience to climate change.

ARM Agricultural Risk Management: AARM is an innovative approach for improving the resilience of vulnerable rural households and leveraging finance and investment. ARM allows farmers and businesses to be pro-active and increases their capacity to assess, prepare for, absorb, and adapt to risks.

Fuzzy Variable: A quantity that can take on linguistic values. For example, the fuzzy variable ‘disease’ might have values such as ‘low’, ’medium’, or ‘high’.

MAUT Method: MAUT method is implemented for ranking dimensions. Multi-attribute utility theory (MAUT) is a structured methodology designed to handle the tradeoffs among multiple objectives. One of the first applications of MAUT involved a study of alternative locations for a new airport in Mexico City in the early 1970s. The factors that were considered included cost, capacity, access time to the airport, safety, social disruption, and noise pollution.

Fuzzy Rule: Fuzzy rule is a conditional statement. The form of fuzzy rules is given by IF THEN statements. If y is B THEN x is A, where x and y are linguistic variables, A and B are linguistic values determined by fuzzy sets.

Fuzzy Set: Fuzzy set is expressed as a function and the elements of the set are mapped into their degree of membership. A set with the fuzzy boundaries are ‘hot’, ’medium’, or ‘cold’ for temperature.

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