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Chapter 6: Risk Management

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Publication date
07/07/2011
Number of Pages
17
Language:
English
Type of Publication:
Working Papers & Briefs
Focus Region:
Global
Focus Topic:
Agricultural Value Chains / Agri-Businesses
Rural Finance / Insurance
Type of Risk:
Biological & environmental
Market-related
Weather & Climate related
Type of Risk Managment Option:
Risk coping
Risk reduction/mitigation
Risk transfer
Commodity:
Crops
Author
National Agricultural Law Center

Because of the nature of raising crops and livestock, farming has its own special types of risk. Nature is the riskiest factor on the farm, but many others exist, such as injury to employees or visitors, product liability if someone becomes ill from something you sell, contamination of your crop by chemicals or certain types of pollen, loss of a market, or price declines. The ways to manage risk vary according to different regions of the country, different crops grown, and different production practices used. With so much depending on how you deal with risk, the chapter concludes and presents an outline on the premise that it is a good idea to have a risk management strategy. This chapter considers the idea of risk and how it affects operation. This chapter discusses risk management strategies and the legal issues raised by these different strategies.