This study analyzed the mean and the variance of rice yield response from adopting Integrated Pest Management and chemical method practices using the Just and Pope's risk flexible model. Moreover, it also analyzed the factors affecting the rice farmers' pest management decisions. An attempt was also made to estimate the effect of such decisions on economic efficiency. The study used primary panel data of rice farmers covering a two-year period (1999-2000). Stratified random sampling using equal allocation method was employed in the selection of 162 samples farmers (81 FFS farmers and 81 non-FFS farmers).