The sources of risk in agriculture are numerous and diverse, ranging from events related
to climate and weather conditions to animal diseases; from changes in agriculture
commodities prices to changes in fertilizer and other input prices; and from financial
uncertainties to policy and regulatory risks. Agricultural risks are not independent,
but rather are linked both to each other and as part of a system that includes all
available instruments, strategies and policies designed to manage risk. A holistic
approach is thus necessary.
This book examines the current magnitude and characteristics of risk-related policies
in agriculture and what is known about the quantitative size of agricultural risks.
It looks at the on-farm, off-farm, and market instruments available to manage risk,
and it explains how the holistic approach helps clarify the role of governments.