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Explain the various ways in which farmers may adjust to risks and uncertainties

Explain the various ways in which farmers may adjust to risks and uncertainties

Answers

-Diversification- Setting up several and different enterprises on the farm. If one fails the
farmer cannot incur total loss.
- Contracting- farmers can enter into contract with consumers. It guarantees a constant fixed market for goods/services
- Insurance- Taking an insurance cover to compensate them incase of loss
- Input rationing- Farmers can control the quantities of inputs used in various enterprises to reduce losses
- Flexibility in production methods- Ability to change from one enterprise to another in response to demand changes
- Adopting modern methods of production e.g. disease control, irrigation, mechanization e.t.c.

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sharon kalunda answered the question on April 15, 2019 at 14:45

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