Entrepreneurship

vulnerability to economic shocks
Emerging  entrepreneurial  farmers  are  often  vulnerable 
to sudden economic changes such as:
•  Unexpectedly low yields or crop failure;
•  Changes in prices for inputs and products; 
•  The relocation of markets;
•  Changes in interest rates; 
•  Adding fees for services; 
•  Additional  market  requirements  (e.g.  levies,  fees, 
changes in packaging requirements).
  
 
Such changes may make the difference between 
profit  and  loss  for  the  farm  business.  Farmers  run  a 
significant  risk  of  not  being  able  to  recover  from  such 
shocks. A key to meeting such challenges is to strengthen 
the asset base of the farm business or to reduce its 
exposure to risk.