Integrated Risk Assessment at Lithuanian Farms

Abstract

Market-based business organisation is inevitably associated with risks resulting from different factors. Since farming activities depend on climatic conditions, environmental protection requirements and seasonality of works an integrated assessment helps thoroughly evaluate the entire farm situation. Following an analysis of agricultural risks this article aims to construct an empiric factor risk index for Lithuanian farms to allow for an integrated farm risk assessment. Study tasks: 1. Via the analysis of agricultural risks presented in scientific works, to establish types of risk describing the internal farm situation. 2. To identify the advantages of an integrated risk assessment. 3. To create an empiric factor risk index for Lithuanian farms making it possible to conduct an integrated farm risk assessment. This article describes the constructed Lithuanian farm risk index which assesses risk in an integrated manner and is useful for farmers as an instrument for evaluating, managing and forecasting farm activities.