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Risk and risk management in organic agriculture: Views of organic farmers

Published online by Cambridge University Press:  12 February 2007

James Hanson*
Affiliation:
Department of Agricultural and Resource Economics, University of Maryland, College Park, Maryland, USA.
Robert Dismukes
Affiliation:
Markets and Trade Economics Division, Economic Research Service, US Department of Agriculture, Washington, DC, USA.
William Chambers
Affiliation:
Markets and Trade Economics Division, Economic Research Service, US Department of Agriculture, Washington, DC, USA.
Catherine Greene
Affiliation:
Resource Economics Division, Economic Research Service, US Department of Agriculture, Washington, DC, USA.
Amy Kremen
Affiliation:
Department of Natural Resource Sciences and Landscape Architecture, University of Maryland, College Park, Maryland, USA.
*
*Corresponding author: jhanson1@umd.edu

Abstract

In a series of focus groups during 2001 and 2002, organic farmers from different regions of the United States identified a wide range of risks to their operations. The focus groups were facilitated by the University of Maryland in cooperation with a research team from USDA's Economic Research Service, to explore the risks faced by organic farmers, how they are managed, and needs for risk management assistance. Contamination of organic production from genetically modified organisms was seen as a major risk, particularly by grain, soybean and cotton farmers. Focus-group participants producing grains and cotton—many of whom knew about and had obtained crop insurance—raised concerns about coverage offered, including the need for insurance to reflect the higher prices received for organic crops. Most fruit and vegetable producers participating in the focus groups had little knowledge of crop insurance. When provided with basic information about crop insurance, operators of small fruit and vegetable farms were skeptical about its usefulness for their type of operation.

Type
Research Article
Copyright
Copyright © Cambridge University Press 2004

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