What can go wrong.
WHAT RISKS ARE INHERENT
Weather Pests and disease Price movement Input availability and cost Theft Land disputes Market access
WHY THEY DIFFER FROM OTHER BUSINESSES
Several can destroy an entire cycle's output.
WHAT TO ESTABLISH
Which risks would end you, as opposed to hurt you.
WHAT TO ADDRESS FIRST
Those.
WHAT REDUCES WEATHER RISK
Irrigation, where feasible Varieties suited to conditions Staggered planting Drainage
WHY STAGGERED PLANTING HELPS
It spreads exposure to a single adverse event.
WHAT REDUCES PEST AND DISEASE RISK
Prevention rather than treatment Rotation Resistant varieties Early detection Biosecurity, for livestock
WHAT REDUCES PRICE RISK
Selling in portions Storage, where economic Agreements with buyers in advance Diversified enterprises
WHAT DIVERSIFICATION MEANS HERE
Enterprises that are not affected by the same events.
WHY THAT QUALIFICATION
Two crops failing in the same drought is not diversification.
WHAT INSURANCE MAY BE AVAILABLE
Agricultural insurance schemes, in some markets and for some enterprises.
WHAT TO ESTABLISH
What is available, what it covers, and what it costs.
WHAT TO NEVER DO
Commit everything to one cycle of one enterprise.
WHAT TO MAINTAIN
Reserves sufficient to plant again after a failure.
WHY
The inability to plant the next cycle is what ends farms.
