Firstly, you should mention brief about the study area concern.

Secondly, regarding your question I think it is better to take socio-economic profile of farmers e.g. gender, dependent member in family, involvement in economic activities other than agriculture, age of farming including source of production expenditure in farming. Besides, you should consider the Geo-physical condition of the study area like climate, soil, physiography etc. Government initiatives regarding agriculture should also be considered.

Marketed surplus, marketable surplus and quantity of commodity stored are some of the variables that reflect the risk in output prices

Are you interested in 'variables affecting farmers price risk management? or variables affecting price risk?

The possible variables that may affect the farmers ability to price risk management : age and education of decision maker, experience, farm and off-farm income, marketable surplus, storage capacity, economic condition, marketing skills, credit availability, etc. 

The possible variables for measuring price risk for farmers can be:

Overall market condition, Farmer's own financial health, Credit availability, Farmer's Reach towards market, Marketable surplus, Farmer's linkage with Association, Network or Cooperative for Collective Intervention, Storage capacity / Access to warehousing Facility, Marketing skills etc. 

Price of the What? Its  a market price.....................and where is the market location...............it is  important to know..............Hence,Sir please see...........the location first.

There are an important factor for price risk.The distance of the market from the farm gate and what type of transport facilities available for the farmers will be useful for your analysis.

The question has to be more specific.  If the question is how price risk affects farmers then one thing to do is to estimate total income variability, and separate from that the participation of price risk.  if the question is about of sources price risk, then you can look at many factors like seasonality, distance to market, market integration, import dependence, tariffs, local stocks, Again the question has be refined...

Respected

Suman Kumar Kundu Sir,  Sendhil Ramadas Sir, Purushottam Sharma Sir,  Ritesh Dwivedi Sir,  ·Raj K Yogi Sir and Joaquin Arias Sir.

                  Thank You All for explaining. 

The important factors responsible for farmers price risk are Supply of goods, SOC and Marketing Channels.

One of the key variable that will affect price risk of farmer would be forex currency fluctuations that create price risk. Other factors that may affect price risk are credit worthiness of counter party, demand supply changes, price changes of substitute project. 

Thank You Sir.

I'm also planning to do a similar kind of study in the context of dairy farmers in the peri-urban dairy farms located in Karachi, Pakistan. 

I'm going to take the socio-economic variables, risk perceptions, and other factors as mentioned in above answers. Plus, I'm going to go one step forward to measure the price risk by volatility in prices and then studying the causality factors.  

Basically I wanted to ask you, if you have any good variables to share, I will be thankful.

Regards,

Abid Shahzad

China Agricultural University.

Definitely, i am working on it. After finalizing i will let you know.

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