Rheinische Friedrich-WilhelmsUniversität Bonn Prof. Dr. Robert Finger Title: Communication and perception of agricultural risk in NRW Background & Objective: Agriculture is inherently risky. Producers are facing various risks, stemming from changing market conditions, weather conditions or institutional changes. Risk management in agriculture is especially challenging as many agricultural outputs are strongly correlated. Thus, diversification, i.e. creating a portfolio of different income sources, is one of the most effective on‐farm risk management strategies. The choice of diversification strategy depends on the main source of risk a specific farmer is exposed to, as well as the farm and farmers socio economic characteristics. Hence, this research should aim towards (1) identifying the structure of agricultural diversification in NRW (i.e., what are the main diversification combinations for the predominant farm types?), (2) analysing the main sources of uncertainty this management strategy is targeting and (3) finding a contextual framework farmers use to communicate the risk they are mainly exposed to. Approach: In order to meet the objectives, the research should combine an empirical analysis of the diversification structure in NRW with the analysis of the most severe risk factors considered by diversified farms. Additionally, focus group interviews should be used to develop a natural framing context for farmers to express those risks (i.e. percentage of crop value or yield?). Ultimately the combined analysis aims towards getting a better understanding of the risk perception and subjective probabilities of farmers using diversification to minimize risk. Contact and supervision: Manuela Meraner [email protected]‐bonn.de Tel: +49 (0) 228‐732135 Background Literature Menapace, L.; Colson, G.; Raffaelli, R. (2013): Risk aversion, subjective beliefs, and farmer risk management strategies. In American Journal of Agricultural Economics 95 (2), pp. 384–389. Rhese, H. P.; Schmitz, S. (2012): Zahlen zur Landwirtschaft in Nordrhein‐ Westfalen 2012. Edited by Landwirtschaftskammer Nordreihn‐ Westfalen. Bonn. Available online at Institut für Lebensmittel- und Ressourcenökonomik (ILR) Production Economics Group Rheinische Friedrich-WilhelmsUniversität Bonn https://www.landwirtschaftskammer.de/wir/pdf/zahlen‐ landwirtschaft.pdf. van Winsen, F.; de Mey, Y.; Lauwers, L.; van Passel, S.; Vancauteren, M.; Wauters, E. (2014): Determinants of risk behaviour: effects of perceived risks and risk attitude on farmer’s adoption of risk management strategies. Journal of Risk Research, pp. 1–23.