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

Abstract

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.