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Table 1 Risk sources in the agricultural sector

From: Farm/crop portfolio simulations under variable risk: a case study from Italy

Nature of risk Micro: (idiosyncratic) risk affecting individual or household decisions Meso: (covariant) risk affecting groups of households or communities Macro: (systemic) risk affecting the entire farm population
Market/prices Crop volatility caused by supply/demand/stock changes amplified by inefficient market conditions Changes in prices of land, working capital or food industry requirements Changes in input/output prices due to trade policy, new markets, or endogenous variability
Production Climate, pests and diseases, personal hazards, wrong technology Climate change, rainfall, land-slides, environmental pollution Changes in market conditions: input/output prices
Financial Changes in level of incomes from off-farm jobs; lack of private sources for investments Bankruptcy, asset risk, cross-market interactions, market efficiency Changes in interest rate, affecting capital and financial assets, market volatility induced by off-farm events, future market volatility and spot markets
Institutional/legal Liability risk Changes in local agricultural and food policy Changes in regional/national/EU policy and interventions on production/marketing
  1. Source: OECD, Year 2011