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Notes. Risks and Uncertainties

The document outlines the concepts of risks and uncertainties in agriculture, defining risks as predictable dangers that can be insured against, such as crop damage and health issues, while uncertainties are unpredictable events like technological changes and climate variations. It provides strategies for managing these risks and uncertainties, including crop diversification, insurance, and maintaining flexibility in supply. The emphasis is on proactive measures to mitigate potential losses in farming.

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gondakupakwashe
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28 views3 pages

Notes. Risks and Uncertainties

The document outlines the concepts of risks and uncertainties in agriculture, defining risks as predictable dangers that can be insured against, such as crop damage and health issues, while uncertainties are unpredictable events like technological changes and climate variations. It provides strategies for managing these risks and uncertainties, including crop diversification, insurance, and maintaining flexibility in supply. The emphasis is on proactive measures to mitigate potential losses in farming.

Uploaded by

gondakupakwashe
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

RISKS AND UNCERTAINTIES

Risk
 A danger/hazard or unwanted happening which a farmer can predict its occurrence and can
insure against

 Examples of risks include


-crop damage
-fire outbreak
-pests and disease outbreak
-poor yields
-accidents
-Health of farmer, work or family member

UNCERTAINTIES

 A danger or unwanted happening which is not predictable and cannot be insured against.
 Uncertainties include
-technological change
-Change or fluctuations in demand
Labour stability
-change in governmental policies
-transport and other services availability and reliability
-change in climate
-breach of contract

Managing risks and uncertainties in agriculture

 Choosing more reliable enterprise eg growing drought tolerant crops in a farmer in region III
and IV
 Growing more than just one crop
 Producing on contract
 Flexibility in supply eg a farmer can withhold his produce until when prices are favourable
 Having substitute and standby equipment
 Insurance
 Crop rotation
 Diversification of projects
 Maintaining records
 Keeping enough reserves

RISKS AND UNCERTAINTIES

Risk
 A danger/hazard or unwanted happening which a farmer can predict its occurrence and can
insure against

 Examples of risks include


-crop damage
-fire outbreak
-pests and disease outbreak
-poor yields
-accidents
-Health of farmer, work or family member

UNCERTAINTIES

 A danger or unwanted happening which is not predictable and cannot be insured against.
 Uncertainties include
-technological change
-Change or fluctuations in demand
Labour stability
-change in governmental policies
-transport and other services availability and reliability
-change in climate
-breach of contract

Managing risks and uncertainties in agriculture

 Choosing more reliable enterprise eg growing drought tolerant crops in a farmer in region III
and IV
 Growing more than just one crop
 Producing on contract
 Flexibility in supply eg a farmer can withhold his produce until when prices are favourable
 Having substitute and standby equipment
 Insurance
 Crop rotation
 Diversification of projects
 Maintaining records
 Keeping enough reserves

RISKS AND UNCERTAINTIES

Risk
 A danger/hazard or unwanted happening which a farmer can predict its occurrence and can
insure against

 Examples of risks include


-crop damage
-fire outbreak
-pests and disease outbreak
-poor yields
-accidents
-Health of farmer, work or family member

UNCERTAINTIES

 A danger or unwanted happening which is not predictable and cannot be insured against.
 Uncertainties include
-technological change
-Change or fluctuations in demand
Labour stability
-change in governmental policies
-transport and other services availability and reliability
-change in climate
-breach of contract

Managing risks and uncertainties in agriculture

 Choosing more reliable enterprise eg growing drought tolerant crops in a farmer in region III
and IV
 Growing more than just one crop
 Producing on contract
 Flexibility in supply eg a farmer can withhold his produce until when prices are favourable
 Having substitute and standby equipment
 Insurance
 Crop rotation
 Diversification of projects
 Maintaining records
 Keeping enough reserves

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