Beruflich Dokumente
Kultur Dokumente
CONTENT
11.1 UNCERTAINTY
11.2 RISK
11.3 SOURCES OF FARM-SYSTEM RISK
11.4 MANIFESTATION OF FARM-SYSTEM RISK
11.5 IMPACT OF FARM-SYSTEM RISK
11.6 FARMERS' RISK-MANAGEMENT STRATEGIES
11.7 FORMAL APPROACHES TO RISKY FARM DECISIONS
11.1 UNCERTAINTY
Uncertainty is a pervasive feature of life.
Uncertainty is also a function of time
Decisions which, because of the influence of
forces beyond the farm manager's control, do not
have a single sure outcome are known as
uncertain decisions
Uncertainty is defined as imperfect knowledge
Decisions which, because of the influence of
forces beyond the farm manager's control, do not
have a single sure outcome are known as
uncertain decisions.
11.2 RISK
FARMERS' RISK-MANAGEMENT
STRATEGIES
An Overview of Small Farmers' Risk-management Strategies
Functional
Strategy
orientation
Production
over time
in durable assets
Marketing
alternative outlets
Arrange
Price
Seek barter
opportunities
Financial
Maintain high
Financia
equity ratio
l, yield,
price
analysis
budgeting
subjective
risk-oriented
mathematical programming
and
Monte
Carlo simulation.