THE FARMERS’ RISK BEHAVIOR OF SALT BUSINESS IN MADURA

ABSTRACT
Salt farmer in Madura contributes 60% to the total national salt production. Therefore, it is not surprising if Madura is also named as Island of Salt. The dependency of the salt production to the climate and unsupported socioeconomics are particular risk to the salt farmers. This research was conducted in Sampang regency which is known as the center of salt business performed by farmers in Madura. The analysis methods that are used to determine the risk preference of salt business are quadratic utility function model and analysis of multiple discriminants. The later method is applied to determine the influenced factors. The result of this research shows that most of the salt farmers have a preference to accept the risks. On the other hand, the only risk preference factor that influenced the salt farmers is the width of salt area.
Key words: behavior, risk, salt, Madura

Download Artikel Lengkap pdf.

Hasil gambar untuk download