Abstract We jointly elicit the time and risk preferences of farmers using a survey. Assuming risk neutrality (linear utility), we estimate a mean annual discount rate of 15.3%, which falls to 4.2% when accounting for risk preferences. Most farmer characteristics have an insignificant relationship with time and risk preferences, except that the percent of income from farming has a negative relationship with risk aversion. Time and risk preferences also show no significant relationship with irrigation intensity. These findings are informative for agricultural decision‐making, as production often involves delayed and uncertain payoffs, and can help guide conservation policy design and promote sustainable practices.
Perez‐Quesada et al. (Wed,) studied this question.