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Risk in Farming

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  • Martin, Sandra
  • Lee, Bill

Abstract

The environment which is currently being faced by farmers in New Zealand is much more risky than it was a decade ago, and the relative importance of different sources of risk has changed over the period. It is likely that a variety of risk management strategies are being adopted in response to these changes. In this paper, some basic ideas on risk are outlined. The risk environment of New Zealand farming is outlined, definitions of risk are explored, and the different sources of risk are discussed. The idea that there is a maximum level of risk which can be tolerated is considered, and the implications of this for risk adjustments by farmers is outlined. A range of risk management strategies are discussed, and the linkage between sources of risk and responses to risk is considered. On the basis of this discussion, some concluding comments are made on the attributes of farmers who are likely to be successful managers of risk.

Suggested Citation

  • Martin, Sandra & Lee, Bill, 1991. "Risk in Farming," 8th Congress, New Zealand, 4-9 February 1991 346158, International Farm Management Association.
    • Handle: RePEc:ags:ifma91:346158
    DOI: 10.22004/ag.econ.346158
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    References listed on IDEAS

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    1. Patrick, George R. & Wilson, Paul N. & Barry, Peter J. & Boggess, William G. & Young, Douglas L., 1985. "Risk Perceptions and Management Responses: Producer-Generated Hypotheses For Risk Modeling," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 17(2), pages 231-238, December.
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    3. Boggess, William G. & Anaman, Kwabena A. & Hanson, Gregory D., 1985. "Importance, Causes, and Management Responses to Farm Risks: Evidence From Florida and Alabama," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 17(2), pages 105-116, December.
    4. Olsson, Rolf, 1988. "Management for Success in Modern Agriculture," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 15(2/3), pages 239-259.
    5. Boggess, William G. & Anaman, Kwabena A. & Hanson, Gregory D., 1985. "Importance, Causes, And Management Responses To Farm Risks: Evidence From Florida And Alabama," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 17(2), pages 1-12, December.
    6. Patrick, George F. & Wilson, Paul N. & Barry, Peter J. & Boggess, William G. & Young, Douglas L., 1985. "Risk Perceptions And Management Responses: Producer-Generated Hypotheses For Risk Modeling," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 17(2), pages 1-8, December.
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    Keywords

    Risk and Uncertainty;

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