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Risks and risk management in agriculture

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  • Theuvsen, Ludwig

Abstract

Agriculture has always been exposed to a wide spectrum of risks. But it is largely undisputed that farmers have faced growing risks in recent years. More volatile agricultural and input prices, climate change, ongoing discussions about the future of the Common Agricultural Policy, increasing difficulty in finding qualified farm workers, and growing criticism of modern intensive agriculture from the wider public and the mass media are just a few of the risks farmers have to cope with. Therefore, risk management has become highly relevant in agriculture. In this paper, we highlight the need for systematic risk management and outline a systematic agricultural risk management approach. Empirical results illustrate farmers’ risk perceptions and their preferred risk management strategies.

Suggested Citation

  • Theuvsen, Ludwig, 2013. "Risks and risk management in agriculture," Problems of World Agriculture / Problemy Rolnictwa Światowego, Warsaw University of Life Sciences, vol. 13(28), pages 1-13, December.
    • Handle: RePEc:ags:polpwa:190788
    DOI: 10.22004/ag.econ.190788
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    References listed on IDEAS

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    1. Robert Faff & Daniel Mulino & Daniel Chai, 2008. "On The Linkage Between Financial Risk Tolerance And Risk Aversion," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 31(1), pages 1-23, March.
    2. Christian Schaper & Ludwig Theuvsen & Achim Spiller, 2010. "Risikoneigung und Risikoverhalten von Milch-erzeugern: Eine Typologisierung," Journal of Socio-Economics in Agriculture (Until 2015: Yearbook of Socioeconomics in Agriculture), Swiss Society for Agricultural Economics and Rural Sociology, vol. 3(1), pages 157-193.
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    Cited by:

    1. Collins-Sowah, Peron A. & Henning, Christian H. C. A., 2019. "Risk management and its implications on household incomes," Working Papers of Agricultural Policy WP2019-05, University of Kiel, Department of Agricultural Economics, Chair of Agricultural Policy.
    2. Kovačević, Vlado & Jeločnik, Marko, 2019. "Development of risk management instruments in the EU," Problems of Agricultural Economics / Zagadnienia Ekonomiki Rolnej 309063, Institute of Agricultural and Food Economics - National Research Institute (IAFE-NRI).
    3. Kovačević, Vlado & Jeločnik, Marko, 2019. "Development of risk management instruments in the EU," Rural Areas and Development, European Rural Development Network (ERDN), vol. 16.
    4. Stępień Sebastian & Smędzik-Ambroży Katarzyna & Polcyn Jan & Kwiliński Aleksy & Maican Ionut, 2023. "Are small farms sustainable and technologically smart? Evidence from Poland, Romania, and Lithuania," Central European Economic Journal, Sciendo, vol. 10(57), pages 116-132, January.

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