Operations Risks Management and Wheat Farming Productivity in Narok North Constituency

Abstract

The objective of this study was to establish the relationship between operation risk management and farm productivity in the agricultural industry in Kenya and the effectiveness of this relationship. Theoretically it is assumed that operation risk management leads to high farm productivity through risk identification and matching with appropriate risk management approach. Inferential statistics (correlations) with farm productivity as the dependent variable and operation risk management as the independent variable was used. These variables were used to establish whether there is a relationship between operation risk management and farm productivity. Thus know their effectiveness with respect to this relationship. Primary data was collected through questionnaires with regard to 2014 wheat farming season and analyzed using statistical tools. The population of 650 wheat farmers in Narok North Constituency was used. The means and standard deviation were calculated for the descriptive data and Karl Peerson was used to answer the research question. The study results indicated that there was weak negative relationship between operation risk management and wheat farm productivity. One of the limitations of the study was high cost of finding a respondent due to expansiveness of the area and poor road network especially during rainy season, thus low response rate. Also the overall rating of operation risk management was not fully captured since some wheat farmers belong to other counties and were not found. The study recommends for a formal operation risk management firm which can sample farmers and rate farm productivity based on various management approaches. This would help improve farm productivity to farmers in Narok Sub County.