Risk Behavior of Small and Marginal Farmers in Cauvery Delta Zone, Tamil Nadu

Farmers’ risk preferences play an important role in agricultural production decisions, takers means the farmers who are willing to take risky decisions farming, aversion attitude of reluctance farming. Climatic change effects all regions across globe and causes substantial agitations that can be expected natural systems have foreseeable influences on economic upland through both direct indirect means. Risk reflect farmers’ personal experiences beliefs, these explain how decision-maker assesses react risks. This study characterizes behaviour among marginal small Cauvery Delta Zone determines affects farmers. The was conducted zone Thanjavur, Thiruvarur Nagapattinam districts with a Sample size 366 which consists 183 selected randomly based proportionate random sampling method. behavior measured by measure two lottery methods viz., Eckel-Grossman Holt-Laury Measure results shows that, 27.60 per cent were moderate taker followed 24.30 averser 15.00 taker. Eckel Grossman method result CRRA (Constant Relative Aversion) value 0.38 0.67, aversers takers. adapted from Holt Laury [1] range for maximum 1.37 minimum -1.71 their choices. majority aversers, socio-economic characteristics decides preference. risk-averse farmer this may imply risk-taking is reduced (resulting on-farm management strategies) demand insurance.