The first phase is directed primarily toward objectives 1 -
4. Data collection for this phase will be accomplished through surveys of agricultural
producers, agricultural lenders, and extension educators. The survey sampling procedure
will be designed in a rigorous manner, so that statistically representative data will be
obtained. The lender and extension educator survey will mirror the portions of the
producer survey that focus on state of knowledge of and preferences among traditional and
newly emerging production, price, and financial risk management tools.
The second phase of the project involves an in-depth
investigation of how risk management educational programs can be designed to effectively
serve the needs of diverse groups of agricultural producers. This work will be carried out
in regional focus-group sessions. Participants in these focus groups will first complete
the producer survey questionnaire from Phase One. In this way, the two components of the
project will be linked so that information gained through the second phase can be used to
draw inferences about the broader, producer survey sample group. This linkage will also
afford the opportunity to evaluate the effectiveness of survey methods in obtaining
information on complex issues such as producers' risk attitudes and risk management
objectives. This validation of survey techniques is important, because it will provide
guidance for future survey efforts that attempt to obtain this type of information.
The goal of Phase Two is to gain additional insight into
the type of risk management information producers need and to examine how that information
is best conveyed through educational programs. Participants will first be given
descriptive information about alternative risk management tools and strategies, and then
will be provided with analysis evaluating the effects of alternative strategies on
profitability and riskiness of representative farming operations similar to their own. At
each stage in this process, questionnaires will be used to obtain measures of changes in
knowledge, perceptions, and preferences among alternative risk management strategies.
