Product Update

Agribusiness and Farm Contractual Risk Transfer Discussed in Agribusiness Risk and Insurance

This release to Agribusiness Risk and Insurance expands the reference to include information on contractual risk transfer in agribusiness.

Farmers face many risks. Some are common to all businesses; others are farm risks that are unique to agriculture. One important technique to manage these risks is contractual risk transfer. Contractual risk transfer involves the use of provisions in a contract or agreement to pass along to other parties what would otherwise be one's own risk of loss. It is used in both traditional risk management, which focuses on pure risks, and enterprise risk management, which deals with both pure and speculative risks.

Some of the important topics addressed are the following.