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Whole Farm Risk Assessment and Action Planning – Tools for Building an Effective Risk Management Action Plan

Doolarie Singh-Knights, Jodi Richmond, Brandy Brabham, Daisy Bailey, and Alexandria Straight

Summary

Local foods and direct marketing systems have become a statewide trend during the past decade because of growing consumers’ interest in local, natural, farm-based foods with distinctive characteristics. The number of WV small producers responding to this market opportunity is steadily increasing, but they still face many risks to profitability that are difficult to overcome given their size and financial capabilities. To benefit from this opportunity in the long term, farmers must first fully understand the types of risks that threaten their farming profitability in order to implement the appropriate strategies to reduce the impact of risks on their business.
The WVU Extension Service continues to offer whole-farm risk management training through two notable programs, WV Annie’s Project and the WV Agritourism Initiative. The overall statewide risk management program responds to an expressed need for continued risk-management education among aspiring, beginning and mid-level producers with social and resource disadvantages. The Agritourism Initiative and Annie’s Project each follow a unique business-planning curriculum designed to address the five functional risk management areas associated with directly marketing agricultural products/services.
This poster demonstrates the Farm Business Risk Priority Matrix tool to help project participants engage in effective risk management by prioritizing risks and selecting the right set of risk management strategies to help maximize profits, reduce income variability and meet strategic goals. The Risk Priority Matrix lays the foundation for their risk management action plan, helping participants to build profitable and viable enterprises with strong community connections through improved business planning and risk mitigation.

Details

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