Abstract
Fluctuations in market prices, weather instability, crop failures, and financial risks are prominent agricultural risks which result in poor farm income. The study analysed the farm risk management strategies and their impact on farm profit among arable crop farmers in the Osogbo ADP zone, Osun state. A multi-stage sampling procedure was adopted to select 120 arable crop farmers as the sample size. Primary data were explored for the study with the utilisation of a well-organised questionnaire. Data were analysed with descriptive and multiple regression analysis. The outputs of the research findings showed that the average hectares under cultivation was 3.23±0.2 with a mean annual farm income of N517,791.67±3,861.02. The result further showed that use of agrochemicals ranked highest among the preventive measures, with a weighted mean score (WMS) of 2.30; use of hired labour (WMS=1.6) and on-farm sales (WMS=1.6) were the most common coping strategies employed and crop diversification (WMS=2.7) was the most common mitigation strategy employed. Costs and return analysis showed that cassava has a benefit-cost ratio (BCR) of 1.9, yams a BCR of 1.6, vegetables a BCR of 1.6, and maize a BCR of 1.1. Low finance (WMS=4.0) was the most significant constraint identified. The multiple regression result showed that household size, farm size and preventive measures were statistically significant and had a positive effect on farm profit. The study recommended that agricultural extension agents should intensify their efforts in regular training of farmers in the best preventive measures against agricultural risks.
Keywords: arable, farm, income, management, risk, strategies