Risk Management Strategies for Farm Enterprise Diversification
Enterprise diversification is one of the most common risk management strategies used by beginning farmers. Farmers are always looking for new ways to add to their marketing mix to keep their farms economically viable. However, identifying and evaluating new or specialty crops, and assessing their true profit potential can be an intimidating task. In addition, adding new crops might involve drastic changes to the farm: including storage equipment, harvest and post-harvest operations. How can farmers evaluate how a new crop will be worth the risks? This workshop will discuss a systematic approach to evaluate new crops or enterprise alternatives and provide tools to manage risks associated with growing new or specialty crops and expanding into new markets. New niche products and markets will be discussed and evaluated for their potential risks.
Moderator: Jose Fernandez de Soto, UCCE Ventura County