1. Nearly all business activities entail a variety of risks. Agriculture more so than most businesses

2. Production Risk

3. Production Risk Weather Rain – too much

4. Production Risk Weather Rain - not enough

5. Production Risk Weather Wind Hail

6. Production Risk Biological Pests and Disease

7. Market Risk Structural and Price

8. Market Risk Structural and Price Movement of Price Both output and input prices

9. Market Risk Structural Risk Changes that may occur in the marketing channel. Processors closing. Rail lines abandon. Labor strikes

10. Market Risk Price Both for output and inputs

11. Policy Risk National Level State Level Local Level

12. Technically market risk can be defined as “exposure to the uncertain market value of a portfolio”

13. In simpler terms: If you have inventory (or will need to purchase inventory) and the product you have has variable and unknown prices – you have market risk.