rice production

1. Welcome To Our
Presentation
And
Good Afternoon
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2. Risk and Risk Management
in Organic Agriculture
Presentation Topic
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3. Department of Agricultural Economics and Policy
Members
Group
“I”
Fowzia
1604030
Foysal
1604047
Nasrin
1604042
Mim
1604055
Sabiha
1504027
Naser
1504015
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4. AUTHOR
WP 03-03
James C. Hanson, Robert Dismukes, William Chambers,
Catherine Greene, and Amy Kremen
Department of Agricultural and Resource Economics
The University of Maryland, College Park
Accepted for publication on June 16, 2004 in Renewable Agriculture and Food Systems, CAB
International; Partial support for this work was provided by the Risk Management Agency, USDA. The
views expressed in this article do not necessarily represent those of the University of Maryland or USDA.
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5. 02
Risk & Organic
Farming
Some title here
01
Risk
04
03
Risk management
assistance
CONTENTS
5
Risk management
strategies

6. 6
Methods and materials used by
author
They chose to use focus group(six) discussion because they
wanted to enable farmers to interact with decision makers to
identify their risk management needs. It helped them to develop
a rich understanding of the critical issues related to risk and
organic farming. They use conference brochures to collect data.
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7. Methodology of Our work
We choose this research paper from “AgEconSearch” by searching
randomly on google and used as a secondary source of our work.
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https://ageconsearch.umn.edu/record/28551
Why we select this paper:
Organic farming is a major issue nowadays. So, we select this topic to
understand what type of risks involved in organic farming and what are
the solutions of these risks.

8. Introduction
 Risk
 Risk is the future uncertainty about deviation from expected
earnings or expected outcome.
 Organic farming
 Organic farming is an alternative agricultural system of crop and
livestock production that involves of choosing not to use
pesticides, fertilizers, genetically modified organisms, antibiotics
and growth hormones.
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9. 1. Production risk
Production risk is anything that directly affects the quantity and quality of our
production or causes variation in expected yields.
Problems
 Pest problem
 Weeds problem
 Disease problem
Solutions
 Crop Diversification
 Timing planting
 Crop rotation
1. Risk
Different risks in organic farming
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10. 2. Genetically Modified Organism
Genetically modified organisms (GMOs) can be defined as organisms in which the
genetic material (DNA) has been altered in a way that does not occur naturally by
mating and/or natural recombination.
Problems
 Destroy the effectiveness of natural pest control
 Loss of organic certification.
 Loss sales.
Solutions
 Bt-based foliar pesticides to control insect.
 Plant crop one to two week later than nearby conventional farmers.
Different risks in organic
farming(Cont.)
1. Risk
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11. 3. Input risk
Input risk is lack of availability of input for organic farming.
Problems
 The flow of credit to organic producer is limited because banks
are unfamiliar to organic farmer.
 Shortage of good labor.
 Decline in the number of dairy farms that results decline sources
of manure.
Solutions
 Re-establish organic certification.
 Work with biological transition process.
Different risks in organic
farming(Cont.)
1. Risk
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12. 4. Organic marketplace risk
Problems
 High Competition
 Price premium are less stable and dropping
 Growing competition , imports, and over-supply in markets
 Consolidation in the food retailing industry
 Supermarket chain have no interest in using locally grown food.
Solutions
Large operations provide by retailers with large volume of production
have tremendous leverage in the marketplace.
Different risks in organic farming(Cont.)
1. Risk
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13. 5. Agricultural policy risk
Problems
 Confusion about details of the national organic program rules, inconsistent
interpretation of rules, uneven enforcement make organic certification more tenuous.
 Cheap food policy by USDA as being detrimental to organic farmers
 Lack of Research on organic agriculture
 Bias in the types of agricultural Research undertaken.
 Commodity Associations do not support organic agriculture.
Solutions
 Complete certification of organic seal can catch mistakes before make a certificate.
It not only shows commitment but also ensure to producers and buyers organic
certification requirement.
Different risks in organic
farming(Cont.)
1. Risk
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14. Risk management
Risk management is the process of identifying, measuring and
controlling threats to an organization's capital and earnings.
2. Risk management strategies
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15. 1. Cultural Practices
 Organic crop rotation.
 Increase organic matter by crop succession.
 Diversification of crops.
 Saving seed various varieties that guards against local diseases.
 Reintroduce of livestock with crop planting.
2. Risk management strategies
Risk Management Strategies Used by organic farmers
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16. 2. Marketing strategies
 Considering CSA in the operation.
 Form cooperative to manage market risk.
3. Mutual support
 Bond together with conventional neighbours.
 Group sharing and leaning from others experiences.
 Properly communicate with their customers.
2. Risk management strategies
Risk Management Strategies Used by organic farmers(Cont.)
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17. 1. General Programs
 USDA needs to better support on long term research.
 Arrangements of Extension programs.
 Consumer education programs.
 Establish program for GMO free seed growing regions.
3. Assistance
Need for risk management assistance
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18. 2. Crop Insurance
 Federal multiple-peril crop insurance USDA program.
 Producer experience with crop insurance was the greatest among organic
field crop producers because federal crop insurance has been offered to
field crop products for a long time.
 The problem of crop insurance is the coverage does not reflect the higher
price.
 Crop insurance should available wider variety of crops.
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Need for risk management assistance(Cont.)
3. Assistance

19. Conclusion
Organic farmers expressed interest in new risk management tools,
such as crop insurance coverage for GMO contamination, which would
address these risks explicitly. They also expressed strong interest in
broader changes in the policy environment- such as a shift in public
spending toward organic research, extension, and consumer
education- which would enhance overall public support for organic
farmers.
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20. 20
5 min.
Any Questions?