Reg Shandro wraps up the ‘5 Pillars of Risk Management’.
It’s important to note that there has to be a balance between the different pillars of risk. However, you must also remember that with the 5 different pillars, the lowest common denominator risk will be the limiting factor on your farm operation. For example, if you have the best production in North America but you have an extremely poor marketing plan, then there is a major risk to the profitability of your farm operation.
So, it is critical to identify the 5 areas of risk on your farming operation and see if you can bring up the level of all 5 pillars to help mitigate risk and improve your farm operation.
One way to think about all of this is, rather than thinking about how much money you can make, think about how much money you stand to lose.
This workshop was funded in part by the Agriculture & Food Council of Alberta