There are seven common types of risks to your farm business. There’s price risk, weather risk, production risk and more, but have you thought about opportunity disguised as risk? If you’re comfortable playing the odds on big projects or plays, how do you find balance in other parts of your farm business? How do you know when an opportunity is worth the added risk?
In this episode of Mind Your Farm Business, Mike Boehlje, distinguished professor of agriculture economics with Purdue University, first lays out why understanding, naming and, perhaps, quantifying risks is important, and then delves into how being nimble and agile in your farm management could mean capitalizing on downturns.
He also discusses how there may be more sources of risk you have yet to consider, such as regulatory risk, crop contamination or reputation risks, that could have a very real impact on your ability to farm successfully, and how many of these risks have very practical, straight forward solutions.
From developing your farm’s business agility, to working at ranking farm risks by likelihood and severity, to evaluating the risk/reward propositions ahead, and learning about the almighty saying “No!”, Boehlje shares some food for thought when it comes to building resiliency into your farm.
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Disclaimer: Royal Bank of Canada and its subsidiaries are not responsible for the information provided in this podcast, and this information does not necessarily reflect the views of Royal Bank of Canada or any of its subsidiaries. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its subsidiaries.