Agricultural Companies: Global

Goals

To obtain a list of the top global political and economic risks for mid-sized and large U.S.-based agriculture companies operating internationally. To determine the geographic areas that are hotbeds of activity in this space and present this information in charts, graphs, maps, among others. This research will inform an independent geopolitical risk analyst launching a consulting business in 1Q20.

Early Findings

Overview

  • Risk is part of the agriculture industry.
  • Risk management ensures that the best choices are made by reducing risk by choosing alternatives with the better odds.
  • According to the USDA, United States Department of Agriculture, the five general risks faced in agriculture are production risk, price or market risk, financial risk, institutional risk, and human/personal risk.

Production Risk

  • Due to factors such as disease, extreme weather, and pests, the production volume and quality may be compromised.
  • It addresses the uncertainties linked with the growth processes of crops and livestock.

Price/Market Risk

  • This risk varies from one commodity to another.
  • This risk addresses the cost farmers will incur when purchasing commodities for inputs.

Financial Risk

Institutional Risk

  • This is a risk that stems from uncertainties in Government decisions and actions.
  • Examples here include tax laws, rules and regulations that address chemical use, animal waste disposal, and pricing levels. All these affect the profit/farm business.

Human/Personal Risk

  • This risk addresses farmers in terms of their physical health, their relationships, and unexpected disasters.
  • Examples here include accidents, illness, death, and divorce.

Risk Management Programs


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