Farmers experience many risks since lots of natural disasters and accidents can affect the status of their farms. This is the reason why they always look for risk management tips to help them out. However, with all the available solutions around, it can get confusing which ones are actually effective. And this is especially true for new farmers. So, we created a list of risk management tips that are tried and tested. If you are ready to know about them, keep on reading!
Strategies for Risk Management on the Farm
Managing risk should be first nature for farmers since they plant diverse crops that can be damaged by different natural disasters and accidents. To protect their crops and revenue, having a backup plan at hand is a must. Now, if you are still uninformed about these risk management plans, we listed some of them here:
1. Get Crop Insurance
One of the most effective ways a farmer can manage the risk they face for their farm is through getting crop insurance. Crop insurance ensures that your row crops and fruit crops are covered in case some event damages them. Through this, you won’t have any loss if your farm gets destroyed during a disaster or an accident. Thus, you will always feel safe.
You can get two types of crop insurance for your farm; multiple-peril crop insurance (MPCI) and crop-hail insurance. The prior one is provided by the government, and the latter one is offered by private sectors. Getting both of this insurance is advisable. Why? Because there are some situations and plants that MPCI cannot cover. And by having crop-hail insurance, you won’t be worried about those things.
2. Evaluation of New Technology
We know it might be cliche, but prevention is always better than cure. And one thing you can do to prevent risk is through the use of modern technology. See, some plants are now genetically modified to withstand pests, diseases, and insects. This is achieved by the Agri biotechnology researchers that have studied for years. They created seedlings that can lessen the risk farmers will have. So, farmers should utilize these seeds and be professional, instead of traditional ones if they are situated in a place where it is more challenging to farm.
3. Enterprise Diversification
Instead of capitalizing on a single type of crop, we suggest planting various ones. By doing this, you will have a bigger market, and you won’t be limited. So, this means you have a variety of people that can purchase from you. Additionally, if some type of crop you plant is not in season, you will still have other ones you can cash in on. Meaning you have a backup plan.
To Sum It All Up
As there are many risks to farming, it is only natural to look for ways to lessen these things. But, in case you are still a beginner in this field, it can be challenging to look for the right way of risk management for your farm. So, we hope that this list we made can help you out if you still haven’t found the one suitable for you.