Smallholder Farmers Agriculture Risk and Mitigation Strategy evidence from Ethiopia: A Literature Review

Ethiopia’s agricultural sector is primarily driven by smallholder farmers, who are vulnerable to numerous risks, including climate variability, market instability, and institutional gaps. The aims these reviews was to explore a source of agricultural risks faced by smallholder farmers and adoption strategies in Ethiopia context. Smallholder farmers in developing nations are susceptible to climatic hazards due to their lack of access to institutional risk management tools like crop insurance, and the majority of them adopt conventional techniques to lessen the detrimental effects of these risks on agricultural productivity. Ethiopian farmers have skill at recognizing risk factors and may develop risk management strategies through practical knowledge. Farmers' risk management techniques are less successful in Ethiopia due to the lack of strong institutions including the banking, market information, and extension consulting services. Final, different empirical findings shows that market network, financial management, variety, and disease prevention are considered to be the most effective risk management strategies in agriculture. The paper recommends targeted government interventions and policies to enhance smallholder resilience in Ethiopia, through designing a policy that address on farmers risk management strategies for pre-existence stage and ex post measures of agricultural risks.