How Much does Risk Really Matter to Farmers

摘要: Agriculture is inherently risky. Farm production a biological process subject to unpredictable weather, diseases, and pests. In addition, farming spatially dispersed on heterogeneous soils. Weather spatial dispersion particularly affect crops grazing livestock. contrast, confinement of animals partially controls risk. This uncertainty fundamental cause agricultural price uncertainty. Price in mirrored livestock poultry feed uncertainty, causing output even for confined production. Over the past 40 years, number changes U.S. sector have further increased Substitution income payments high supports federal commodity programs resulted major crop prices being determined with markets rather than policy floors. increasing international trade commodities 1970s supply demand shifts throughout world, as well this country. Increases size farm operations pace technological change managerial complexity need farmers manage Urbanization areas has conflicts new neighbors. A final environmental other regulations that influence risk management introduce sources These themes termination programs, globalization markets, complexity, neighbor conflicts, governmental are environment over 50 years.