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 ((LMHIA) 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.
- How well do you follow good production practices?
- Are you prepared to handle diseases and pests, food safety and traceabiity, machine readiness for operation, and labour availability?
- Do you manage the production risk through government programs for the maximum benefit of your operation?
- 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?
- 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?
- 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?