An Economic Assessment of a New Oilseed Technology in Barwon, Victoria: The Implications for Uptake of Farmers' Beliefs and Risk Attitudes

Abstract

The uptake of new technology by farmers is likely to be influenced by their perceptions of the riskiness of that technology and by their attitude to risk. Farmer beliefs about risks are shaped by both experience and received information. A lack of familiarity with a new technique often results in biased farmer perceptions of the riskiness of the technique. However, as more information about the technology is acquired from various sources, including extension services, these perceptions are likely to change. This study is an evaluation of a new oilseed on the basis of how its riskiness is perceived by five case-study farmers and by two experts. The analysis is carried out with regard to the assessment of a new technology, Linola. Linola™ is a new oilseed crop developed by CSIRO through chemical and genetic manipulation of the inedible-oil producing linseed to a variety that produces quality edible oil similar in composition to sunflower oil. A general survey of the literature on the production of the major oilseeds in Australia is undertaken with emphasis on the potential. of these crops to be more than disease break crops. Various aspects of the global and Australian markets for oilseeds and their products are considered with emphasis on how these factors affect both the short- and long-term production of this crop grouping in Australia in particular.