Risk Management in Agriculture
– Production risk – includes weather, insects, disease, technology and any other events that directly affect production quantity and quality.
– Price risk – uncertainty in the market for your commodity, such as changes in the prices of inputs and/or outputs.
– Financial risk – the method in which capital is acquired and financed and the firm’s ability to pay financial obligations.
– Institutional risk – changes in governmental and/or legal policies and standards that affect agriculture.
– Personal risk – risk common to all businesses such as death, divorce, or injury to the proprietor.Blueprint Agricultural Innovation helps individuals that are interested in agriculture identify and manage risk.we are keen to grow our nation through agriculture.
Risk is a major part of agriculture. Each day, farmers encounter different types of risk but changes in the risk environment and available tools available to manage the risk make it a compelling reason to engage in risk management education. The five primary sources of risk in agriculture are as follow:
– Production risk – includes weather, insects, disease, technology and any other events that directly affect production quantity and quality.
– Price risk – uncertainty in the market for your commodity, such as changes in the prices of inputs and/or outputs.
– Financial risk – the method in which capital is acquired and financed and the firm’s ability to pay financial obligations.
– Institutional risk – changes in governmental and/or legal policies and standards that affect agriculture.
– Personal risk – risk common to all businesses such as death, divorce, or injury to the proprietor.Blueprint Agricultural Innovation helps individuals that are interested in agriculture identify and manage risk.we are keen to grow our nation through agriculture.
Risk management on agriculture
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September 28, 2018
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