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Risk has always been a part of agriculture, but farming in America has changed drastically over the past few years. Increasingly, farmers are learning that it is now a game with new risks. The most successful farmers are now looking at a deliberate and knowledgeable approach to risk management as a vital part of their plan. For them, risk management means farming in a more rapidly changing world. It is the ability to deal with risks that comes with new farming opportunities.
One common method of classifying risk is to look at risk as it affects the various functions on the farm. Farmers generally deal with five types of risks. They are:
1. Production
2. Marketing
3. Financial
4. Legal Issues
5. Human Resource Issues
There are five action steps farmers can use to manage risks….
