Risk in agriculture is always evolving - but are producers keeping up? An FCC Vision Survey, asked over 2,000 farm operations across the country about their risk attitude, concern levels and risk management strategies.
The survey found that 87% of Canadian farm operations have implemented strategies to mitigate the risks they reported regarding their operation. And while that statistic is impressive, it only reflects their strategies for areas they reported as “concerning.”
There are many reasons producers wouldn’t implement a risk management strategies:
- Their risk preference or attitude
- Failure to assess risk properly
- Perceiving them as ineffective
To better understand farm operations’ areas of concerns, let’s dig into the survey results.
How the survey scored risk
Risk in the survey fell under five categories: financial, production, marketing, human resource and legal. We computed two risk management scores from the survey:
- Producer-identified risk score: Risks identified as of concern by operations who have implemented a risk mitigation strategy.
- Total risk score: All risks listed in the survey where operations report using a risk mitigation strategy.
Canadian farm operators have implemented strategies to manage 51% of the risks listed in the survey. This score is 35 percentage points lower than the risk management score computed where risk is reported as a concern to the operation.
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