Please take three minutes to watch the video above, which explains how agricultural risk is generally viewed across five distinct categories:

• Production Risk – Can I Grow It?
• Market (price) Risk – Can I Sell It (at a price where I make money)?
• Financial Risk – Involves financial factors (e.g., interest rates and credit terms) that could threaten your farm’s financial viability.
• Human Risk – Relates to the safety, satisfaction, and productivity of a farm’s owners and employees.
• Legal Risk – Events or actions, including government regulations, that could have legal impacts on your operation.

Effective management of these risks generally determines the long-term viability of a farm or ranch operation.