Source:  SAMPSON INDEPENDENT, 9/21/21

Risk is an important aspect of the farming business. The uncertainties inherent in weather, yields, prices, government policies, global markets, and other factors that impact farming can cause wide swings in farm income. There are five general types of risk: production risk, price or market risk, financial risk, institutional risk, and human or personal risk.
• Production risk derives from the uncertain natural growth processes of crops and livestock. Weather, disease, pests, and other factors affect both the quantity and quality of commodities produced.

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