Document Type : Original Article


1 Assistant Professor, Department of Agricultural Economics, University of Sistan and Baluchestan, Zahedan, Iran

2 MSc Student, Department of Agricultural Economics, University of Sistan and Baluchestan, Zahedan, Iran


As regards decreasing cotton cultivation in Iran during these years, the degree of risk taken by a cotton cultivator in the agricultural part is important. The studies showed that the cotton crop yield during the past years did not have enough growth and the cotton cost product in the period of study cotton production costs, has increased. In this paper, the risk orientation of cotton cultivators was investigated; the researchers have done this employing a parametric approach and the Saha Mean-Standard Deviation Model. Statistical information and the cost product of provinces which produce cotton between 2000-2010 were collected. Econometric models with panel data were estimated. The results showed that cotton cultivator aversion, risk, and the trend increased when the income and the fluctuation cost product went up in each hector.

Graphical Abstract

The Analysis of Iran Cotton Producers’ Risk Degree Based on Non-Linear Mean-Standard Deviation Model


Increased production costs and production risk of the factors are reducing the area under cotton cultivation.

The results of this study indicate that Iran's cotton farmers are risk averse.

The degree of risk aversion increased, when the income and the fluctuation cost product went up in each hector.



Main Subjects

Abdulkadri, A., Michael, O., & Langemeir, R. (2003). Estimation of risk aversion cofficient for dry land wheat and irrigated corn enterprises in Kansas. Applied Economics, 35(7), 825-834.
Abdulkadri, A., & Langemeier, R. (1999). Estimation of risk aversion coefficients For dryland wheat and irrigated corn enterprises in Kansas," 1999 Annual meeting, August 8-11, Nashville, TN 21658, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
Ashrafzadeh, H.R., & Mehregan, N. (2008). university Research and Cooperation Institution.
Dasti, Q., & Khaksar Khiabani, F. (2013). The evaluating of Tabriz Onion cultivator trends toward risk by nonlinear Mean-Standard Deviation Model. Agricultural Economics and Development, 21(83), 173-189.
Esfandiari, M., Shahraki, J., & Karbasi, A. (2011). Determine the technical efficiency of Rice production with risk (case study: Marvdasht Fars province). Agronomy Journal, 100(1), 76-87.
Farzin, M., Torkamani, J., & Mousavi, S.N. (2012). The role of income insurance on Darab Cotton tiller’s risk management (case study: Darab Cotton cultivator). Agricultural Economics Reserches,15(4); 143-168.
Ferdosi, R., & Koopahi, M., (2005). Determination of wheat growers' attitude towards risk A case study of Golestan province farmers. Agricultural Economics and Development, 13(52), 27-43.
Liu, E., & Huang, J., (2013). Risk preferences and pesticide use by Cotton Farmers in China. Journal of Development Economics, 103, 202-215.
Markowitz, H. (1952). Portfolio selection. The Journal of Finance, 7(1), 77-91.
Meyer, J. (1977). Choice among distributions. Journal of Economic Theory, 14 (2): 326-336
Mohammadvand Nahidi, M., & Qolipour Feizi, M., (2012). The study of the relationship between macroeconomics variables and environmental pollution in selected countries (cotton seed panel data). Regional Development and Economics, 19(4), 100-113.
Rezaee, Z., Shahnooshi, N., Mohammadi, H. & Kiani rad, A., (2013). The effects of government support policies on income risk and production cost of selected horticultural products (Pistachio, Date, Apple and Citrus). Agricultural Economics Research, 5(20), 131-159
Saeedian, Sh. (2013). Measuringthe productivity and welfare of mazafati date farmers in the presence of production risk in Suran city. Unpublished Thesis, Department of agricultural economics, Sistan and Bluchestan University.
Saha, A. (1997). Risk preference estimation in the nonlinear mean standard deviation approach. Economic Inquiry, 35(4), 770-782.
Saha, A. Shumway, C.R., & Talpaz, H. (1994). Joint estimation of risk preference structure and technology using Expo-power Utility. American Journal of Agricultural Economics, 76(2), 173-184.
Sekar, I. & C. Ramasamy (2001). Risk and Resource Analysis of Rainfed Tanks in South India. Journal of Social and Economic Development, 3 (2), 208-215.
Tobin., J. (1958). Liquidity preference as behavior towards risk. New haven, Conn. U. A. A. 66-86.
Toledo, T. R., & Engler, P.A (2008). Risk Preferences Estimation for Small Raspberry Producers in the Bio-Bio Region, Chile. Chilean Journal of Agricultural Research, 68(2), 175-182.
Yusuf, S. A., Ashagidigbi, W. M. & Bwala, D.P. (2015). Poverty and Risk Attitude of Farmers in North-Central, Nigeria. Environmental and Agricultural Sciences, 3, 1-7.
Zibaee, M. & Mirzaee, A., (2013). The study of Eeffective factors for accepting Adoption of supplemental insurance options in Rafsanjan Agricultural Economics and Development, 28(1), 26-34.