| dc.description.abstract | Berastagi District is one of vegetable supply in North Sumatera. One of the best vegetables that produced by Beratsagi District are potato, cabbage, mustard, and tomato. Vegetables farming always faced risk such as pest attack and diseases, uncertainty climate and weather, prices fluctuatuions, and market variability. One of the strategy tu reduce farming risk is diversification. Diversifiation is an alternative to make more profit from one crop than loss from other crop to minimize risk. Farming diversifivation is to combined potato, cabbage, mustard, and tomato to establisehd an optimum portofolio. The purpose of this study was to analyze and compared income and risk in vegetable farming in a specialized and diversification as well as to analyze farmer’s decision making on portofolios at various levels of risk preferences. This research was done by using calculaiton of expected return, standart deviation and coefficient variation of portofolio income and risk. To analyze decisionmaking atvarious levels of risk preference, the analysis use Stochastic Efficiency With Respect to a Function (SERF) model. Results show that diversification can reduce risk pf specialized farming. Furthermore, changes in farmer’s risk preferences whll change farmer’s decision making in portofolio selection. | en_US |
