Managing Risks in Farming and Agriculture
Rural industries like farming are well-versed in managing risk. From dealing with extreme weather conditions to maintaining machinery, understanding and managing risks in farming is vital for the industry. However, there are now new challenges in the wake of Brexit and the pandemic that are having a very real impact on risk management in agriculture.
This section aims to support rural and farming industries with relevant news and information, and expert advice and resources, to encourage growth in this vital UK sector.
It remains to be seen how great the impact of Brexit will be on farming in the UK, but with 60% of an average farm’s income coming from EU subsidies, many are starting to diversify to supplement their income. And this brings with it new challenges when managing risks in farming.
Renewable energy generation like wind turbines, tourism ventures like campsites, and retail projects like farm shops, are popular ways to diversify a farming business and bring in additional income. There are new risks to identify and manage with each, and it is vital to ensure the right level of cover is in place for any new venture.
And there are other issues to consider too. TB cover is becoming increasingly difficult to get at affordable prices and Nitrate Vulnerable Zones (NVZ) are also added risks in a farming business.
Supporting Farmers for a Prosperous Future
Machinery is another risk factor. There are difficulties in sourcing machinery in the current climate and rising costs of machinery often make it tricky to estimate sums insured. Understanding these risks and taking early action to control, transfer or mitigate them is important to any farming business.
And, of course, farming is often generational, so family farming succession planning is another key consideration in securing a strong and prosperous future for farming and other rural industries in the UK.
