Resilience to Risk in Modern Agriculture: Implications of Farm Management

Margaret Lippsmeyer, Michael Langemeier, James Mintert and Nathanael Thompson

Journal of Agribusiness, 2022, vol. 40, issue 2

Abstract: International conflicts, bottlenecks in distribution systems, and changes in agricultural policy represent unexpected risks, which develop at a rapid pace, creating disruption and a reshaping of market dynamics. We define strategic risks as the occurrence of these unanticipated market disruptions. The ability of producers to build resilience to these risks has become a crucial factor for business survival and success in an increasingly turbulent environment. This research develops metrics to assess the farm resilience levels of U.S. agricultural producers and analyzes how farm-level characteristics influence a farms ability to withstand and recover from strategic risks. Using ordinary least squares and multivariate probit regression analysis, we explore the relationships between farm resilience and factors such as risk preferences, management practices, and technology adoption. This research offers insights into how farm managers can enhance resilience to strategic risk and build more robust business strategies in the face of global uncertainties.

Keywords: Farm; Management (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:ags:jloagb:387627

DOI: 10.22004/ag.econ.387627

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