03-10-2014, 09:58 AM
Abstracts: In current scenarios Agriculture is widely considered more risky than industry or trade. Weather, pests, diseases and other calamities affect the yield of crops, substantially in extreme cases. Markets and prices are additional risks associated with agriculture. Many agricultural markets are imperfect, lacking information and communications infrastructure. The prices that crops will sell for are unknown at the time of planting and vary with levels of production (locally and globally) and demand at the time of sale. Complicating the scenario is the fact that decision making in agriculture is not an exact science; it depends on many variables that change from year to year and are beyond the farmers’ control. Farmers have no real way of knowing how many others are planting a specific crop or how average yields will fare in any given year. Farmer doesn’t know when any disease comes in their crops.