Why Does Your Farm Need Risk Management?

Risk management is an often overlooked strategy that can make a difference in the success of your farm. Our mission is to provide farmers and agribusinesses with information to improve farm financial management and reduce risk.

Managing Risk, Strengthening Farms

Farming is an essential part of Connecticut’s economy and communities—but it comes with inherent risks. Weather events, market fluctuations, equipment failure, labor shortages, regulatory changes, and even health issues can all threaten the success of an operation. That’s why farm risk management is critical. By identifying potential risks and planning ahead, farmers can protect their livelihoods and build long-term resilience.

What is Farm Risk Management?

Farm risk management involves identifying, assessing, and preparing for potential risks that could impact your farm. Understanding these categories helps farmers make informed decisions and develop strategies to minimize disruptions. These risks typically fall into five categories:

• Production Risk – crop and livestock losses due to weather, pests, or disease
• Financial Risk – changes in interest rates, credit access, or unexpected expenses
• Market Risk – price volatility and shifting consumer demand
• Legal and Regulatory Risk – liability issues and changing laws or regulations
• Human Risk – health, safety, and labor challenges affecting you, your family, or employees.