Agricultural producers, like any other business, experience a negative impact of risk on production results. A lot of different factors determine the magnitude of negative impact of risk. In this study, certain types of risk and factors which cause them and have the greatest impact on Lithuanian agriculture are identified and examined, as well as the most effective risk management features in order to increase the operating profitability, minimizing the possibility of failure, are determined.
In this study, after analyzing and systematizing results of different authors’ analytical research in academic literature, five types of risk which have the greatest impact on agricultural activity were identified also their specificity was characterized. After assessing the specificity of certain types of risk and factors causing them, the questions were prepared and a survey of agricultural producers was conducted.
According to survey results, the most significant factors causing certain types of risk that are specific to Lithuanian agriculture were identified. For this purpose, the ranking method was used, according to which, the importance of each risk factor was evaluated by assigning ranks to average values of factors. The higher the rank, the more significant factor is. The study results proved that high riskiness of agriculture, in particular, arises from reliance on natural forces. The land resource suitability, sufficiency and accessibility, suitability of law and regulations and their change are very important factors as well. Factors of internal environment are less important.
After analyzing and economically evaluating the key factors of risk, the most effective risk management features were determined and the preliminary management scheme of factors causing certain types of risk that are specific to Lithuanian agriculture was prepared. This scheme is recommended for family farms, corporate farms and agricultural advisory service as methodological tool in the development of business and risk management strategic plans.
Key words: agriculture, family farms, risk, risk factors, risk management.
Bradūnas, V.; Kozlovskaja, A. 2014. Rizika Lietuvos žemės ūkyje: Mokslo studija. Vilnius: Lietuvos agrarinės ekonomikos institutas. 64 p.: iliustr., santr. angl. (online) ISBN 978-9955-481-48-5.