Risk management for farming

It is important to plan for risk in all aspects of your farm business operation. These risks include:

• production risks
• market risks
• financial risks
• human resource risks
• policy risks

Continually assess the security of your operation to reduce the probability and impact of adverse events

The Lower Mainland Horticultural Improvement Association's annual Growers' Short Course offers seminars on agricultural risk management. The following video recordings feature speakers from the 2017 seminars.

• Watch more videos about succeeding at agrifood business management
• Watch more videos about starting a farm

Questions to ask

As an agrifood business manager, it is helpful to consider the following questions to mitigate different types of risk.

Production risk

• How well do you follow good production practices?
  • Get information on good agricultural practices
  • Get information about good food processing practices
• Are you prepared to handle diseases and pests, food safety and traceabiity, machine readiness for operation, and labour availability?
  • Find information and services to manage diseases and pests
  • Learn about food safety and traceability
  • Learn about human resource management on the farm
• Do you manage the production risk through government programs for the maximum benefit of your operation?
  • Learn about Insurance & Income Protection Programs

Market risk

• Do you have a marketing risk strategic plan and knowledge of marketing tools to deal with adverse market conditions?
• Do you receive current and accurate market information?
• Can you identify trends in prices?
  • Learn more about developing markets
  • Access marketing resources

Financial risk

• How secure are your financial arrangements with lending agencies?
• Will the current levels within your production insurance coverage meet your cash flow requirements?
• What is the worst-case scenario for production loss?

Human resources risk

• Do you have a plan to deal with loss of labour or management skills?
• Have you implemented a human resources strategy?
  • Learn how to develop a human resources plan

Policy risk

• Are there national or international policies that will negatively affect your markets?
• Do you have a plan to deal with changes in government policy and regulation?