Development should include
- identifying types of risk (e.g., production, human resources, environmental, social responsibility)
- analysis of types and amounts of insurance needed
- analysis of liability types (e.g., in an agritourism operation or in a production enterprise)
- the use of the futures market in protecting product price
- options for contract pricing (forward pricing) for products or services rendered.
Process/Skill Questions:
- What are potential consequences of not having a risk-management plan in place for an agricultural production enterprise?
- What resources are available to develop a risk-management plan for an agricultural production enterprise?
- How do fluctuations in input and output prices cause income gains and losses?