FIN320 - 15

Use of large parcels of land in the production of crops and the grazing of livestock

Production risk

Price risk

Natural risk

Key man risk

Other risks

Insurance

A storage plan

Price analysis and forecasting 

Hedging and forward contracts

Diversification

Flexibility

Yield or output levels may be lower than expected

- drought, floods, fire, excessive rainfall at harvest or planting, pests, disease, equipment/machinery failure (irrigation pump)

Risk that the key person in the business (owner) being unable to continue working (injury, illness, death)