An Empirical Study on to Identify the Factors Which Related to the Farmer’s Risk Behavior: An Exploratory Factor Analysis

Abstract

Risk denotes a situation in which the probabilities are known, whereas uncertainty denotes a situation in which the probabilities are unknown to the decision maker. Agriculture risk differs from farmer to farmer and from farming system to farming system. The study's major goal is to look at the elements that impact a farmer's risk behaviour. Principal Component Analysis was used to examine the scale's eighteen positive and negative items (PCA). These factors account for 19.288, 18.328, 16.284, 8.309, and 5.918 percent of the variation, respectively. After seeing a definite split in the Scree Plot graphical depiction Following the five components, it was agreed to keep the five components for future exploration. The five-component Each item/variable has a considerable loading on each other.