(5) Difference in nature and attitude of farmers towards the risk and
uncertainties. This is because when there is a high risk in the adoption
of modern technology, farmers are reluctant to abandon the outdated technology.
It is shown with the help of Fig.
Here the line MCN denotes the minimum consumption need. It is fixed, If the
level of consumption is lower than this, it means famine and death. The line MDC
stands for minimum desirable consumption. This slopes upward slowly. This
represents the change in attitude due to economic growth etc. Small farmers
attitude towards risk and uncertainties will be determined by his traditional
production function. We take two types of farmers advanced - A and backward - B.
The B's production remains close to MCN but A's production has increased slowly
and it is above MCN and close to MDC. It shows that A farmer is a risk taker in
adopting new techniques as compared with B. So as long as A farmer lives hand to
mouth, he cannot afford risk. The govts. of UDCs do not provide any assurance to
small farm holders against risk. Moreover, the returns to the cultivators are