Risk management by farmers, agribusinesses, and lenders

Ashok K. Mishra, Sergio H. Lence

Research output: Contribution to journalArticlepeer-review

6 Scopus citations

Abstract

Producers and lenders seek to avoid agricultural production-related risks through various managerial and institutional mechanisms. For individual farmers and agribusinesses, risk management involves choosing among alternatives for reducing the effects of risk on the firm, thereby affecting the firm’s welfare position. Risk management often requires the evaluation of tradeoffs between changes in risk, expected returns, entrepreneurial freedom, and other factors. Research on risk management issues in agriculture has been among the main topics of interest of the Regional Research Committee for Financing Agriculture in a Changing Environment: Macro, Market, Policy, and Management Issues, and its predecessors. This paper reviews and summarizes much of the Committee’s work and provides a discussion of related topics of interest for prospective future research.

Original languageEnglish (US)
Pages (from-to)131-148
Number of pages18
JournalAgricultural Finance Review
Volume65
Issue number2
DOIs
StatePublished - Nov 1 2005
Externally publishedYes

Keywords

  • Farm financial performance
  • Federal subsidies
  • Risk-management tools

ASJC Scopus subject areas

  • Agricultural and Biological Sciences (miscellaneous)
  • Economics, Econometrics and Finance (miscellaneous)

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