FIN320 - 15

  1. Broadacre Farming
    Use of large parcels of land in the production of crops and the grazing of livestock
  2. Key risks in Agri lending (!!!)
    Production risk

    Price risk

    Natural risk

    Key man risk

    Other risks
  3. Agri risk reduction techniques
    Insurance

    A storage plan

    Price analysis and forecasting 

    Hedging and forward contracts

    Diversification

    Flexibility
  4. Production risk
    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)
  5. Key Man Risk
    Risk that the key person in the business (owner) being unable to continue working (injury, illness, death)
Author
Lea_
ID
335266
Card Set
FIN320 - 15
Description
FIN320 - Agricultural
Updated