AGBU10
Module 10: Agricultural Diversification (Optional)
Outcome
Assess opportunities for diversification in agriculture.
Indicators
(a) Examine types of risks (e.g., operational and financial) agribusiness owners may face.
(b) Define the terms diversification and risk management.
(c) Discuss the relationship between risk management and diversification within the context of agriculture.
(d)

Examine ways in which agricultural diversification can be accomplished, such as:

  • growing a variety of crops (i.e., crop diversification);
  • implementing a recommended crop rotation;
  • growing crops in a variety of locations (i.e., geographic diversification);
  • varying revenue streams (e.g., a mixed operation that includes both crop and livestock or establishing an ancillary agriculture-related enterprise such as a seed cleaning plant, corral cleaning and manure spreading services or certified seed growing); and,
  • performing value-added activities to a primary agricultural commodity (e.g., producing flavoured honeys, a variety of beeswax products such as candles, and gift baskets as a honey producer).
(e) Assess the benefits (e.g., better livelihood for producers/farmers, increased variety of products in the marketplace and increased employment opportunities) and challenges (e.g., capital costs, financing and skillset required) associated with various agricultural diversification strategies.
(f) Describe ways to analyze the success of a diversification strategy following its implementation.
(g) Identify the purpose of Business Risk Management (BRM) programs (e.g., AgriStability, AgriRecovery and AgriInvest).
(h) Investigate features of, and eligibility and application requirements for, BRM programs.
(i) Analyze a variety of given agribusiness scenarios, propose potential solutions for diversification and defend the best solution for each scenario.
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