Topic > An Empirical Study on Financial Risks in Bangladesh's Agricultural Sector

The agricultural sector of many countries has demonstrated phenomenal productive capacity in dominating the world's agricultural supply, despite being one of the most challenging business sectors. For decades it has been struggling to achieve inclusive growth and all-round development. It involves multiple risk factors for farmers, processors, intermediaries, suppliers, retailers and source companies to manage. The descriptive study attempts to identify, evaluate and explore the significant relationship between financial risk and sustainable agricultural sector. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay This research demonstrates chronologically a structured questionnaire in some categories; also includes the factors that influence the perception of farmers and agri-food specialists through quantitative analysis. This research provides some independent variables which are identified through correlation and multiple regression method to show the level of significance with suitable strategies also to review and evaluate their performance with respect to the perception of the agricultural sector; this can add value to society as well as exemplary research for potential researchers. The study suggests policy interventions needed to mitigate risks and support Bangladesh's agricultural industry. Agriculture plays a key role in the economic growth of Bangladesh. The overall economic development of the country depends on the development of the agricultural sector. Due to a number of factors, Bangladesh's labor-intensive agriculture has achieved a steady increase in grain production despite unfavorable weather conditions. One of the major constraints that have hampered the sustainable growth and development of this sector is the paucity of funds among poor farmers and other financial risks. This constraint can be overcome through appropriate policies aimed at reducing risks and promoting effective strategies. This is descriptive research. Descriptive research is used to illustrate the characteristics of a population or phenomenon being studied. There are several methods of research on a topic (experiment, survey, cross-sectional or longitudinal study, story, case study, ethnographic action research, narrative inquiry) and we have taken into account Survey research technique here. This is a popular business/managerial search strategy. It allows the collection of quantitative data that can be examined through 'Descriptive Statistics'. It is crucial to argue that our sample is fully representative. This article reports on an investigation into the financial risk factors governing agriculture and agribusiness in Bangladesh. A non-probability purposive sampling method was adopted to collect data for this study. In this regard, a questionnaire was designed in which 15 variables associated with the agricultural sector industry were identified using five-point Likert scales from “strongly agree to strongly disagree”. Responses received from a targeted group who are directly engaged in the agricultural sector or agri-food sector in Bangladesh. The sample size was 30 subjects and the interviewees were from agri-food sector stakeholders, employees, farmers/producers, suppliers/retailers, financial managers of financial institutions; all responses obtained through personal interview, telephone conversation and email. According to the objectives of the study, the following hypothesis is developed for testing: Figure-1: Summary of data collectionH0 (Null): There is no relationshipsignificant among the financial risks with a sustainable agricultural sector. H1 (Alternative): There is a significant relationship between financial risk for a sustainable agricultural sector. There are fifteen variables derived from 15 questions designed to collect data from the sample population. From the graph above it is clear that most of the respondents strongly agreed and agreed with the identified variables. So there is a positive relationship with their opinion and their variables. Correlation analysis is used to show the strength of a relationship between identified variables. It defined the relationship strength of variables into four categories in terms of directions: nonlinear relationship, strong positive relationship, weak positive relationship. Strong negative relationship. The correlation coefficient can vary in value from -1 to +1. The higher the absolute value indicates the stronger relationship between the variables. From the data analysis it is found that the variables are positively and negatively correlated with each other. Interpretation of the result: One of the direct sales variables has a positive relationship with supply/demand while it shows a negative relationship with credit line. Therefore, through correlation analysis, the strength of the relationship with other variables was represented. Regression analysis is used to evaluate the association between or more independent variables and a single continuous dependent variable. One-way ANOVA was used to test the hypothesis. To conduct this study there are two hypotheses with level of significance, α=0.05; the hypotheses are - H0 (Null): There is no significant relationship between financial risks and sustainable agriculture. H1 (Alternative): There is a significant relationship between financial risk for a sustainable agricultural sector. The fundamental strategy of ANOVA is to systematically examine the variability within the compared groups and also examine the variability between the compared groups. The null hypothesis in ANOVA is always that there is no significance relationship with the means and the alternative hypothesis contradicts the null hypothesis. Two ways can be followed to determine whether the null hypothesis would be accepted or rejected. One is comparing the F test value with the critical value, if the F test value is greater than the critical value which is F>sig.F, the null hypothesis would be rejected and another way is to compare the P values ​​with the level of significance, α= 0.05; if the P values ​​are less than α=0.05 i.e. P < α=0.05 then the null hypothesis would be rejected. Therefore, from the result determined by the regression analysis, it is found that the value of F = 1.27 is greater than the value Sig.F= 0.32 and all the values ​​of P are greater than α=0.05, therefore l The null hypothesis (H0) was rejected and alternative hypothesis established (H1). Prospective Risk Mitigation Strategies: Mitigating the financial risks of the agricultural sector is very challenging, but the rate of occurrence can be reduced by forming suitable and relevant trades. The following devices can play an indispensable role in alleviating or reducing risks in the agricultural sector. For example: Avoiding risk susceptibility Crop diversification and intercropping Diversification of livelihood sources Appropriation of successive cultivation techniques (fertilization, irrigation, resistant varieties) Adding buffer stocks of crops or liquid resources Sharing crops set of random risks (marketing contract, future marketing, insurance) Addressing concussions (Ex-post strategies; social assistance, social funds, government incentives, cash transferReduce risk by evolving in capacity developmentCustomer attitudes in the agri-food sectorSolution to overcome weaknesses and challengesPresence.