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‣ Risk management strategies by Australian farmers: two case studies

Nguyen, N.; Wegener, M.; Russell, I.; Coventry, D.; Cooper, I.
Fonte: Charles Sturt University, Australian Farm Business Management Network Publicador: Charles Sturt University, Australian Farm Business Management Network
Tipo: Artigo de Revista Científica
Publicado em //2007 Português
Relevância na Pesquisa
46.05936%
Australian farmers operate in one of the most risky farming environments in the world. They have to cope with numerous sources of risk including weather uncertainty, variable market prices, and institutional changes in their business management. This paper reports results from two case studies undertaken to examine the issues of farming risks and risk management strategies in Australia. The first case study found that unpredictable weather, financial risk, marketing risk, and personal risk were regarded as the major sources of risk among farmers in the Upper Eyre Peninsula of South Australia. The main risk management strategies used by farmers in that region included diversifying crop varieties, adopting minimum tillage farming practices, minimising the area of risky crops and maximising the area of less-risky crops. They also regarded high equity, having farm management deposits, and other off-farm investments as appropriate risk management strategies, and mostly 'left marketing to the experts'. The second case study among dryland cropping farmers in southwest Queensland revealed that weather uncertainty was ranked as the most important source of risk in farming in that area. The risk from weather uncertainty was then followed by financial risks...