AREC 3005 Agricultural Finance and Risk
As per the course AREC 3005 Agricultural Finance and Risk, financial risk results when the farm business take money and creates an obligation to repay debt. Increasing interest rates, the prospect of loans being called by lenders, and restricted credit availability are also aspects of financial risk.
Risks in agriculture as per the course AREC 3005 Agricultural Finance and Risk, stem from various sources, from unpredictable extreme weather events to market disruption or unplanned policy or institutional changes. For all type of risk, a low-impact event is mostly more frequent than one that has a large impact.
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