Uncertainty and disaster‐avoidance behaviour in peasant farming: Evidence from Bangladesh

A sample of smallholding farmers in the Pabna region of Bangladesh provide data to test predictions of a safety‐first model and of a profit maximisation model of farmer behaviour. Of the two sets of predictions, the data tend to support those of the safety‐first model more frequently than they support the predictions of the profit maximisation model. While the degree to which the former model ‘out‐performs’ the latter is not great, it is important to note that when the major inputs (land and human labour) and the major outputs (rice and jute), are focused upon, the safety‐first model performs much better than the profit maximisation model.