Risk

Management
for low-income
farmers
Presented by
Ebite, Charlene
What are the effects of the high
risks faced by farmers in low-
income countries, how do farm
families cope with these risks, and
what policies are appropriate to
lessen risk?
 PRODUCTION AND
TECHNICAL RISK
Crops depend on biological
processes that are affected by
the weather, and by pests and
diseases.

MARKETING RISK
The price of farm products is
affected by the supply of a
product, demand for the product,
and the cost of production.
 FINANCIAL RISK
occurs when money is borrowed to
finance the farm business. This risk
can be caused by uncertainty about
future interest rates.

INSTITUTIONAL RISK
refers to unpredictable changes in
the provision of services from
institutions that support farming

HUMAN AND PERSONAL

SKSIR

RISK
refers to the risks to the farm
business caused by illness or death
and the personal situation of the
farm family.
How do farm families cope
with these risks
consume less food or to switch their diet from rice to
cassava
Farmers also find means of generating extra income so
that they can purchase food in the market, often
selling small livestock (e.g. chickens) or working as
agricultural wage labourers on other farms.
farmers turn to relatives or friends for support—to
borrow money,
 What policies are
appropriate to lessen
risk?
SUBSIDIES TECHNOLOGICAL TRAINING AND
INNOVATIONS EXTENSION SERVICES
can include both cash and in-
kind payments. These used to improve the wide types Educate farmers to adopt
have been extensively used to of production practices sustainable strategies,
promote technology adoption employed by farmers. Makes use make better-informed
and enhance land of hybrid seeds,technologically choices.
productivity advanced equipment and lots of
energy subsidies in the form of
irrigation water, fertilizers and
pesticides.