The influence of farmer characteristics on risk preferences in red onion farming in Rejoso District, Nganjuk Regency

Shallots are a promising farming business that can increase income for farmers who can be cultivated in the dry season and rainy season. However, shallot farming in the rainy season has a high risk so that a farmer's courage is needed in making decisions to cultivate in that season to get profit. This study aims to analyze the effect of farmer characteristics on risk preferences in shallot farming in Rejoso sub-district, Nganjuk district. Using multiple regression analysis, this study considered nine independent variables, namely age (X1), education (X2), experience (X3), land size (X4), land ownership status (X5), livelihood (X6), access to information technology (X7), number of family dependents (X8), and production objectives (X9) against the dependent variable of risk preference (Y). The analysis shows that the regression model has an R Square value of 0.488, indicating that 48.8% of risk preference is influenced by farmers' internal factors, while 51.2% is influenced by other external factors. The ANOVA test showed the significance of the model (p < 0.05), with the variables of education, experience, land size, land ownership status, livelihood, access to information, number of family dependents, and production objectives having a significant effect on risk preference, while age had no significant effect. Overall, the results of this study provide insights into how farmer characteristics influence risk decisions in shallot farming, which is important for the development of agricultural strategies and policies in the area.