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Passage - 4A number of empirical studies find that farmers are risk-averse, though only moderately in many cases. There is also evidence to show that farmers' risk aversion results in cropping patterns and input use designed to reduce risk rather than to maximize income. Farmers adopt a number of strategies to manage and cope with agricultural risks. These include practices like crop and field diversification, non-farm employment, storage of stocks and strategic migration of family members. There are also institutions ranging from share tenancy to kinship, extended family and informal credit agencies. One major obstacle to risk sharing by farmers is that the same type of risks can affect a large number of farmers in the region. Empirical studies show that the traditional methods are not adequate. Hence there is a need for policy interventions, especially measures that cut across geographical regions.Policies may aim at tackling agricultural risks directly or indirectly. Examples of risk-specific policies arc crop insurance, price stabilization and the development of varieties resistant to pests and diseases. Policies which affect risk indirectly are irrigation, subsidized credit and access to information. No single risk-specific policy is sufficient to reduce risk and is without side-effects, whereas policies not specific to risk influence the general situation and affect risks only indirectly. Crop insurance, as a policy measure to tackle agricultural risk directly, deserves careful consideration in the Indian context and in many other developing countries because the majority of farmers depend on rain-fed agriculture and in many areas yield variability is the predominant cause of their income instability.Q.The need for policy intervention to mitigate risks in agriculture is becausea)farmers are extremely risk-averse.b)farmers do not know how to mitigate risks.c)the methods adopted by farmers and existing risk sharing institutions are not adequate.d)majority of farmers depend on rain-fed agriculture.Correct answer is option 'C'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Passage - 4A number of empirical studies find that farmers are risk-averse, though only moderately in many cases. There is also evidence to show that farmers' risk aversion results in cropping patterns and input use designed to reduce risk rather than to maximize income. Farmers adopt a number of strategies to manage and cope with agricultural risks. These include practices like crop and field diversification, non-farm employment, storage of stocks and strategic migration of family members. There are also institutions ranging from share tenancy to kinship, extended family and informal credit agencies. One major obstacle to risk sharing by farmers is that the same type of risks can affect a large number of farmers in the region. Empirical studies show that the traditional methods are not adequate. Hence there is a need for policy interventions, especially measures that cut across geographical regions.Policies may aim at tackling agricultural risks directly or indirectly. Examples of risk-specific policies arc crop insurance, price stabilization and the development of varieties resistant to pests and diseases. Policies which affect risk indirectly are irrigation, subsidized credit and access to information. No single risk-specific policy is sufficient to reduce risk and is without side-effects, whereas policies not specific to risk influence the general situation and affect risks only indirectly. Crop insurance, as a policy measure to tackle agricultural risk directly, deserves careful consideration in the Indian context and in many other developing countries because the majority of farmers depend on rain-fed agriculture and in many areas yield variability is the predominant cause of their income instability.Q.The need for policy intervention to mitigate risks in agriculture is becausea)farmers are extremely risk-averse.b)farmers do not know how to mitigate risks.c)the methods adopted by farmers and existing risk sharing institutions are not adequate.d)majority of farmers depend on rain-fed agriculture.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Passage - 4A number of empirical studies find that farmers are risk-averse, though only moderately in many cases. There is also evidence to show that farmers' risk aversion results in cropping patterns and input use designed to reduce risk rather than to maximize income. Farmers adopt a number of strategies to manage and cope with agricultural risks. These include practices like crop and field diversification, non-farm employment, storage of stocks and strategic migration of family members. There are also institutions ranging from share tenancy to kinship, extended family and informal credit agencies. One major obstacle to risk sharing by farmers is that the same type of risks can affect a large number of farmers in the region. Empirical studies show that the traditional methods are not adequate. Hence there is a need for policy interventions, especially measures that cut across geographical regions.Policies may aim at tackling agricultural risks directly or indirectly. Examples of risk-specific policies arc crop insurance, price stabilization and the development of varieties resistant to pests and diseases. Policies which affect risk indirectly are irrigation, subsidized credit and access to information. No single risk-specific policy is sufficient to reduce risk and is without side-effects, whereas policies not specific to risk influence the general situation and affect risks only indirectly. Crop insurance, as a policy measure to tackle agricultural risk directly, deserves careful consideration in the Indian context and in many other developing countries because the majority of farmers depend on rain-fed agriculture and in many areas yield variability is the predominant cause of their income instability.Q.The need for policy intervention to mitigate risks in agriculture is becausea)farmers are extremely risk-averse.b)farmers do not know how to mitigate risks.c)the methods adopted by farmers and existing risk sharing institutions are not adequate.d)majority of farmers depend on rain-fed agriculture.Correct answer is option 'C'. Can you explain this answer?.

Solutions for Passage - 4A number of empirical studies find that farmers are risk-averse, though only moderately in many cases. There is also evidence to show that farmers' risk aversion results in cropping patterns and input use designed to reduce risk rather than to maximize income. Farmers adopt a number of strategies to manage and cope with agricultural risks. These include practices like crop and field diversification, non-farm employment, storage of stocks and strategic migration of family members. There are also institutions ranging from share tenancy to kinship, extended family and informal credit agencies. One major obstacle to risk sharing by farmers is that the same type of risks can affect a large number of farmers in the region. Empirical studies show that the traditional methods are not adequate. Hence there is a need for policy interventions, especially measures that cut across geographical regions.Policies may aim at tackling agricultural risks directly or indirectly. Examples of risk-specific policies arc crop insurance, price stabilization and the development of varieties resistant to pests and diseases. Policies which affect risk indirectly are irrigation, subsidized credit and access to information. No single risk-specific policy is sufficient to reduce risk and is without side-effects, whereas policies not specific to risk influence the general situation and affect risks only indirectly. Crop insurance, as a policy measure to tackle agricultural risk directly, deserves careful consideration in the Indian context and in many other developing countries because the majority of farmers depend on rain-fed agriculture and in many areas yield variability is the predominant cause of their income instability.Q.The need for policy intervention to mitigate risks in agriculture is becausea)farmers are extremely risk-averse.b)farmers do not know how to mitigate risks.c)the methods adopted by farmers and existing risk sharing institutions are not adequate.d)majority of farmers depend on rain-fed agriculture.Correct answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for UPSC. Download more important topics, notes, lectures and mock test series for UPSC Exam by signing up for free.

Here you can find the meaning of Passage - 4A number of empirical studies find that farmers are risk-averse, though only moderately in many cases. There is also evidence to show that farmers' risk aversion results in cropping patterns and input use designed to reduce risk rather than to maximize income. Farmers adopt a number of strategies to manage and cope with agricultural risks. These include practices like crop and field diversification, non-farm employment, storage of stocks and strategic migration of family members. There are also institutions ranging from share tenancy to kinship, extended family and informal credit agencies. One major obstacle to risk sharing by farmers is that the same type of risks can affect a large number of farmers in the region. Empirical studies show that the traditional methods are not adequate. Hence there is a need for policy interventions, especially measures that cut across geographical regions.Policies may aim at tackling agricultural risks directly or indirectly. Examples of risk-specific policies arc crop insurance, price stabilization and the development of varieties resistant to pests and diseases. Policies which affect risk indirectly are irrigation, subsidized credit and access to information. No single risk-specific policy is sufficient to reduce risk and is without side-effects, whereas policies not specific to risk influence the general situation and affect risks only indirectly. Crop insurance, as a policy measure to tackle agricultural risk directly, deserves careful consideration in the Indian context and in many other developing countries because the majority of farmers depend on rain-fed agriculture and in many areas yield variability is the predominant cause of their income instability.Q.The need for policy intervention to mitigate risks in agriculture is becausea)farmers are extremely risk-averse.b)farmers do not know how to mitigate risks.c)the methods adopted by farmers and existing risk sharing institutions are not adequate.d)majority of farmers depend on rain-fed agriculture.Correct answer is option 'C'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Passage - 4A number of empirical studies find that farmers are risk-averse, though only moderately in many cases. There is also evidence to show that farmers' risk aversion results in cropping patterns and input use designed to reduce risk rather than to maximize income. Farmers adopt a number of strategies to manage and cope with agricultural risks. These include practices like crop and field diversification, non-farm employment, storage of stocks and strategic migration of family members. There are also institutions ranging from share tenancy to kinship, extended family and informal credit agencies. One major obstacle to risk sharing by farmers is that the same type of risks can affect a large number of farmers in the region. Empirical studies show that the traditional methods are not adequate. Hence there is a need for policy interventions, especially measures that cut across geographical regions.Policies may aim at tackling agricultural risks directly or indirectly. Examples of risk-specific policies arc crop insurance, price stabilization and the development of varieties resistant to pests and diseases. Policies which affect risk indirectly are irrigation, subsidized credit and access to information. No single risk-specific policy is sufficient to reduce risk and is without side-effects, whereas policies not specific to risk influence the general situation and affect risks only indirectly. Crop insurance, as a policy measure to tackle agricultural risk directly, deserves careful consideration in the Indian context and in many other developing countries because the majority of farmers depend on rain-fed agriculture and in many areas yield variability is the predominant cause of their income instability.Q.The need for policy intervention to mitigate risks in agriculture is becausea)farmers are extremely risk-averse.b)farmers do not know how to mitigate risks.c)the methods adopted by farmers and existing risk sharing institutions are not adequate.d)majority of farmers depend on rain-fed agriculture.Correct answer is option 'C'. Can you explain this answer?, a detailed solution for Passage - 4A number of empirical studies find that farmers are risk-averse, though only moderately in many cases. There is also evidence to show that farmers' risk aversion results in cropping patterns and input use designed to reduce risk rather than to maximize income. Farmers adopt a number of strategies to manage and cope with agricultural risks. These include practices like crop and field diversification, non-farm employment, storage of stocks and strategic migration of family members. There are also institutions ranging from share tenancy to kinship, extended family and informal credit agencies. One major obstacle to risk sharing by farmers is that the same type of risks can affect a large number of farmers in the region. Empirical studies show that the traditional methods are not adequate. Hence there is a need for policy interventions, especially measures that cut across geographical regions.Policies may aim at tackling agricultural risks directly or indirectly. Examples of risk-specific policies arc crop insurance, price stabilization and the development of varieties resistant to pests and diseases. Policies which affect risk indirectly are irrigation, subsidized credit and access to information. No single risk-specific policy is sufficient to reduce risk and is without side-effects, whereas policies not specific to risk influence the general situation and affect risks only indirectly. Crop insurance, as a policy measure to tackle agricultural risk directly, deserves careful consideration in the Indian context and in many other developing countries because the majority of farmers depend on rain-fed agriculture and in many areas yield variability is the predominant cause of their income instability.Q.The need for policy intervention to mitigate risks in agriculture is becausea)farmers are extremely risk-averse.b)farmers do not know how to mitigate risks.c)the methods adopted by farmers and existing risk sharing institutions are not adequate.d)majority of farmers depend on rain-fed agriculture.Correct answer is option 'C'. Can you explain this answer? has been provided alongside types of Passage - 4A number of empirical studies find that farmers are risk-averse, though only moderately in many cases. There is also evidence to show that farmers' risk aversion results in cropping patterns and input use designed to reduce risk rather than to maximize income. Farmers adopt a number of strategies to manage and cope with agricultural risks. These include practices like crop and field diversification, non-farm employment, storage of stocks and strategic migration of family members. There are also institutions ranging from share tenancy to kinship, extended family and informal credit agencies. One major obstacle to risk sharing by farmers is that the same type of risks can affect a large number of farmers in the region. Empirical studies show that the traditional methods are not adequate. Hence there is a need for policy interventions, especially measures that cut across geographical regions.Policies may aim at tackling agricultural risks directly or indirectly. Examples of risk-specific policies arc crop insurance, price stabilization and the development of varieties resistant to pests and diseases. Policies which affect risk indirectly are irrigation, subsidized credit and access to information. No single risk-specific policy is sufficient to reduce risk and is without side-effects, whereas policies not specific to risk influence the general situation and affect risks only indirectly. Crop insurance, as a policy measure to tackle agricultural risk directly, deserves careful consideration in the Indian context and in many other developing countries because the majority of farmers depend on rain-fed agriculture and in many areas yield variability is the predominant cause of their income instability.Q.The need for policy intervention to mitigate risks in agriculture is becausea)farmers are extremely risk-averse.b)farmers do not know how to mitigate risks.c)the methods adopted by farmers and existing risk sharing institutions are not adequate.d)majority of farmers depend on rain-fed agriculture.Correct answer is option 'C'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Passage - 4A number of empirical studies find that farmers are risk-averse, though only moderately in many cases. There is also evidence to show that farmers' risk aversion results in cropping patterns and input use designed to reduce risk rather than to maximize income. Farmers adopt a number of strategies to manage and cope with agricultural risks. These include practices like crop and field diversification, non-farm employment, storage of stocks and strategic migration of family members. There are also institutions ranging from share tenancy to kinship, extended family and informal credit agencies. One major obstacle to risk sharing by farmers is that the same type of risks can affect a large number of farmers in the region. Empirical studies show that the traditional methods are not adequate. Hence there is a need for policy interventions, especially measures that cut across geographical regions.Policies may aim at tackling agricultural risks directly or indirectly. Examples of risk-specific policies arc crop insurance, price stabilization and the development of varieties resistant to pests and diseases. Policies which affect risk indirectly are irrigation, subsidized credit and access to information. No single risk-specific policy is sufficient to reduce risk and is without side-effects, whereas policies not specific to risk influence the general situation and affect risks only indirectly. Crop insurance, as a policy measure to tackle agricultural risk directly, deserves careful consideration in the Indian context and in many other developing countries because the majority of farmers depend on rain-fed agriculture and in many areas yield variability is the predominant cause of their income instability.Q.The need for policy intervention to mitigate risks in agriculture is becausea)farmers are extremely risk-averse.b)farmers do not know how to mitigate risks.c)the methods adopted by farmers and existing risk sharing institutions are not adequate.d)majority of farmers depend on rain-fed agriculture.Correct answer is option 'C'. Can you explain this answer? tests, examples and also practice UPSC tests.