2023, Vol. 5, Issue 11, Part A

This paper reviews the literature on the influence of agricultural risk management tools on the savings behavior of farmers. Through an exhaustive examination of various risk management strategies, such as crop insurance, futures contracts, diversification, and government programs, the paper explores how these tools impact farmers' propensity to save. It highlights the complex relationship between risk management and savings behavior, influenced by factors like farmers' risk aversion, access to financial services, and the socio-economic environment. The review identifies a gap in the literature regarding the long-term effects of these tools on savings and suggests directions for future research.