Risk Management

Securing your farm operation against the unexpected

There is risk in all aspects of your farm business operation. These include production risks, market risks, financial risks, human resource risks, and policies. There needs to be ongoing assessment of the security of your operation to reduce the probability and impact of adverse events.

Production Risk

How well do you follow good production practices such as timely operations, disease prevention and pest management, machine readiness for operation, and labour availability? Do you manage the production risk through government programs for the maximum benefit of your operation?
 
Learn more about Business Risk Management 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?

Financial Risk

How secure are your financial arrangements with lending agencies? Do you meet with them regularly to discuss your business plan? Will the current levels within your production insurance coverage meet your cash flow requirements? What is the worst-case scenario for production loss? Do you incorporate other risk mitigation strategies?

Human Resources Risk

Do you have a plan to deal with loss of labour or management skills? It pays to have a human resources strategy in place.

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?