Risk and sustainability in tobacco production in Turkey.

In this study, the risks that the farmers encounter in tobacco production in Turkey and the ideas about risk management strategies used against these risks were analyzed. The study also included socio-economic characteristics, decision making, financial characteristics and sustainability issues related with tobacco farms. The data used in the study was obtained through face-to-face questionnaires from 50 tobacco farms in Acipayam county of Denizli province in Aegean region in 2005 production season. The most important risk source affecting tobacco production in the studied region was the change in input costs, and the most important risk management strategy was crop insurance. At the end of factor analysis made in the scope of the study, risk sources were grouped in five factors, namely, production risk, personal risk, policy risk, disease and pest risk and financial risk. Risk management strategies were named as off-farm income and insurance, marketing management, financing management, debt management and diversification.