Risk factors in the agriculture sector

Abstract

The agricultural sector je characterized by the fact that there is a high level of risk. It was always this case, but in the last years, there is a tendency of the increasing of the risk. The ability of early detection and effective management of the risks is an integral part of the strategic management of every agricultural organization. The paper presents the procedure and outcomes of the questionnaire survey aimed at the occurrence of the risk factors and approaches to the risk management in the enterprises of the primary agricultural production in Slovakia. The survey is focused on the individual character of the risk. The results of the survey point out the fact, that Slovakian farmers perceive the price risk, production or income risk as the most important risk factors, and the diversification as a most important strategy of the risk management. The most significant positive correlations were found between the land size and the perception of the price risk importance, between the number of years in office and the perception of the price risk importance. Concerning the production or income risk, the significant positive correlation was found in the legal form of business. As the most important, there was evaluated the risk perceived by the self-employed farmers.