Identification and Analysis of Different Risks Associated with Saffron Cultivation (Case Study: Kermanshah Province)

Document Type : Research Paper


1 PhD Student, Department of Agricultural Extension and Education, Faculty of Agriculture, Razi University, Kermanshah, Iran.

2 Assistant professor, Department of Agricultural Extension and Education, Faculty of Agriculture, Razi University, Kermanshah, Iran.


This research was conducted quantitatively to identify and analyze the sources of risks of saffron production in Kermanshah province. The statistical population consisted of 114 saffron farmers of the province, of whom data were collected by complete enumeration technique. The research instrument was a researcher-made questionnaire consisting of two sections including the demographic and occupational characteristics of the participants and items to measure risk. The data were analyzed by opinion polls and related formulas. The results of the multi virtual cluster analysis showed that most saffron farmers reported low production risk, price and financial costs, and moderate and high natural and human risks. According to saffron farmers, the most important risks include production risks (such as the lack of timely delivery of inputs), human risk (the shortage of available labor to harvest saffron, disease, and migration of young family members, and the theft of agricultural products and equipment), market risk (guaranteed sales, lack of equipment and facilities for packaging and bulk sales of the product, and arbitrary pricing), financial risks (lack of access to bank facilities, lack of liquidity, shortage of funds, lack of savings accounts to avoid selling the crop at a low price, and a short interval between receiving and repaying loans), natural risk (lack of government support and assistance for the sale and marketing of saffron at reasonable prices, absence of state-sponsored insurance, lack of communication network between saffron farmers at the local and regional level). The development of saffron production calls for efforts to eliminate the relevant risks.


Anderson, J. R. (2001). Risk management in rural development a review. The World Bank rural development family, rural development Strategy Background pp.4-14.
Anton, J. Kimura, S and Martini. R. (2011). Risk Management in Agriculture in Canada, OECD Food, Agriculture and Fisheries Papers, No. 40, OECD Publishing, Paris.
Bahrami, A. Agahi, H. (2007). Risk management in agricultural farms. Green Earth Journal.No4 (39). pp.32-36.
Balat, M., & Balat, H. (2009). Recent trends in global production and utilization of bio-ethanol fuel. Applied energy, 86(11), pp. 2273-2282.
Bitsch,V., Abate.kassa, G., Harsh, S.B., & Mugera, A. (2006). Human resource management risks:sources and control strategies based on dairy farmer focus groups. Journal of Agricultural and Applied Economics, 38 (1) .pp, 123-136.
Central Bank of the Islamic Republic of Iran. (2015). Economic time series database and the national accounts.
Ebrahimi, H. (2008). Saffron monopoly. Iran's economy.NO, 41. Pp. 73-76.
Figle, Sh., Barry P.J., & Wall, A. (2012). Assessing farmer attitudes toward risk using the "closing in" method. Journal of Agricultural and Resource Economics, 26(1):248-260.
Gan, L., Yin, Z., & Tan, J. (2016). Financial Risks of Rural Households. In Report on the Development of Household Finance in Rural China (2014). Pp. 107-116.
Ganjali, A., Pour Ramezani Harati, M., Keykhaei, M., Mehdipur, B. (2015). Investigating the challenges on the path of the development of medicinal. The second National Conference on the challenges and strategies for development. Kahnuj, Islamic Azad University of kahnuj.
George, F., & Wesley, N. (1995). Sources of and responses to risk:Factor Analyses of large- scale cornbelt Farmers. Staff paper. NO.17-95.West lafayette,in:purdue university.Department of Agricultural Economics.
Ghamarnia, H., & Soultani, N. (2016). Cultivable Area Zoning of Saffron in Kermanshah Province: An Option for Crop Pattern Change to Cope Water Scarcity using GIS (To replace high water use plants). Land Management. 4. 1-11.
Heifner, R., Coble, K., Perry, J, & Somwaru, A. (1999). Managing risk in farming: concepts, research, and analysis. J. L. Harwood (Ed.). US Department of Agriculture, Economic Research Service.
Just, R. E., & Pope, R. D. (Eds.). (2013). A comprehensive assessment of the role of risk in US agriculture (Vol. 23). Springer Science & Business Media.
Kahan, D. (2013). Managing risk in farming. FAO.
Kalantai, K.H. (2003). Data analysis and analysis in socio- economic research using spss software.publishers sharif.
Miller, A. Dobbins, C. Pritchett, J. Boehlje, M. Ehmke, C. (2004). Risk Management for Farmers, Staff Paper 04-11, Department of Agricultural Economics, Purdue University, 1-27.
Mohtashami, T., Karbasi, A., Gharibi, B. Z. D. (2016). Economic analysis of production and technical performance to compare small and large fields of Saffron in the Razavi Khorasan Province. Agriculture and technology, saffron. V0l.6 (5). pp. 616-634.
National document for herbal medicine and traditional medicine (2013). Strategic staff council implementation of the comprehensive scientific plan. Accessible: /2 314.
Nejatianpour, E., Ghodoosi, M., Hasan pour, J. (2018). Application of Risk Profile in Saffron Risk Management. Saffron agronomy and technology.6 (4). PP .513-529.
Roapi, P.P. (2010). Production risk and adoption of irrigation technology: evidence from small-scale farmers in Chile. Latin American Economic Review, 25(1), 2.
Salami, H., Tahami pour, M. (2015). Determining Factors Affecting Price Risk of Corn in Iran. Journal: ETESAD-E KESHAVARZI VA TOWSE’E, 23(89); Pp 95 – 114.
Senger, I., Borges, J. A. R., & Machado, J. A. D. (2017). Using the theory of planned behavior to understand the intention of small farmers in diversifying their agricultural production. Journal of Rural Studies, 49, 32-40.
Soltani, A. (2019). The process of the development of the cultivation of Saffron in Kermanshah Province. Kermanshah Province agricultural site.
Sulewski O., and Kloczko-Gajewska A. (2014). Farmers' risk perception, risk aversion and strategies to cope with production risk: An empirical study from Poland. Studies in Agricultural Economics, 116: 140-147.
Székely, Cs., & Pálinkás, P. (2008). Kockázatkezelés az európai mezĹ‘gazdasági vállalkozásokban [Risk management in European agricultural enterprises], “Agrofórum”,
Tahami pour, M., Varahrami, V., Ghavidel, V. (2019). Measuring Pistachio price risk and determining effective factors on it in the main producer provinces. Agricultural Economics Research, 11(41), 237-262.
Ulah, R., Shivakoti, G. P., Zulfiqar, F., & Kamran, M. A. (2016). Farm risks and uncertainties Sources, impacts and management. Outlook on Agriculture, 45(3), 199-205.
Yaghoubi, A., Chizari, M., Feli, S., Pezeshki Rad, GH. (2010). Factors influencing risk management among the farmers of the rain fed wheat: Tafresh region case study Iranian Agricultural Extension And Education Journal. Vole 6, N (1); Pp.91 – 102.
Yavari, N., Zarafshani, K. (2017). Factors influencing the adoption of saffron in Songhor and Sahne counties in Kermanshah Province. Saffron Research.Spring-summer2017, Vol 5, No (1); Pp.111 -123.