Agriculture Risk Management

Agriculture is inherently risky.  Because it is risky, it can have large negative impacts on agricultural income, on food security, and the capacity of the sector to develop, invest, and compete in particular among the large, commercial farm enterprises.

Production Risks

The succession of floods, droughts, pandemic (AI) over the last 5 to 6 years are a stark reminder of the importance of weather-related and other “natural” events. Climate change may induce more permanent changes to Romanian agriculture such as drier summers, and warmer and drier winters. It is also likely that climate change will make weather events more unstable, and catastrophic events such as floods and droughts not only more frequent but also more severe. We are mitigating this by applying ex ante strategies:

Ex Ante Strategies

Those are strategies that allow us to reduce your exposure to production risks (crop diversification, changes in cropping patterns or seeds on the farm; or public programs: irrigation systems, agricultural extension services, pest management systems, preparedness to pandemics, adaptation to climate change), or those that allow you to transfer risks –in part or whole– through risk-sharing mechanisms such as crop insurance.

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