Risk Assessment of Hemp Growing – A Case Study
2021
Cadot, Julien | Kayser, Patrick
The goal of this case study is to highlight the sequence of decisions related to the production of hemp during the 2019 season. Hemp was seen as a tremendous opportunity for farmers after the legalization of hemp production in the 2018 Farm Bill. The newness of the production techniques and supply chain implies uncertainty in all the common sources of risk found in agriculture: production risk, market or price risk, financial risk, institutional risk and human resource risk (Hoag, 2010). Based on the experience of a farmer primarily specialized in the production and direct selling of organic vegetables in Southwest Virginia, the story illustrates how decisions are made in a context of uncertainty. An active reading of the narrative, information, and data delivered in figures and exhibits allows a student to develop a comprehensive approach to risk management in the context of specialty crop production. We recommend the student use the case study to create a “risk management dashboard” with matrices for farmers considering hemp production as a potential enterprise.
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