Risk management recognizes a new, expansive vision for agriculture: A vision taking into account the interdependency of business, family and community. Risk management education centers on five basic sources of risk: Production, marketing, financial, legal and human resource.
Production risk relates to uncertainty associated with yield or output. Marketing risk deals with price fluctuations and market product sales variability. Financial risk addresses business profits, change in owner equity and cash flows. Legal risk takes into account business agreements and contracts, as well as, environmental liability and concerns. Human resource risk focuses on the role of people in the firm and their relationships.
For each of these sources of risk, there are strategies and tools which can be employed to reduce exposure to and the possibility of unfavorable outcomes. These strategies and tools are the focus of our risk management educational programs. Through workshops, seminars and publications, UNH Cooperative Extension hopes to help farmers stabilize and enhance business income ensuring long-term viability of the family farm.
