Boel urges farmers to look at risk- management tools to help business

By Ray Ryan, Agribusiness Correspondent

Wednesday, October 14, 2009

PEOPLE interested in the future of farming have been urged by EU commissioner for agriculture Mariann Fischer Boel to look at the area of risk management.

Ms Boel stated that one often hears that successful businessmen are those who can predict how the market will change and who have the strength and determination to act on it.

Ms Fischer Boel said one often hears that "nothing ventured, nothing gained" but the best strategy is to hope for the best and prepare for the worst. This is where risk management comes into the picture.

"Risk management is definitely not a topic that steals the limelight. But in its own quiet way, it is an essential tool for farmers.

"Most farmers already apply risk management. They use different tools such as particular farming practices, insurance, financial markets, cooperation, and participation in the supply chain in order to protect themselves against unforeseen occurrences. But I still think we can do more, especially in terms of training and the use of farm advisory services."

Ms Fischer Boel stated that a recent report on agricultural insurance gives a good illustration not only of risks, but of how different the situation is throughout Europe.

"The world is constantly changing, markets have become more turbulent and the weather less predictable. So we need to constantly be on the lookout for new ways of managing risks in farming.

"We already have good risk management tools in the CAP, like direct payments, market mechanisms and schemes such as support for climate-related projects.

"But we can certainly do more and do it better. That is why we have already begun reflecting on future policy tools and techniques that can help farmers create robust risk management strategies."

This story appeared in the printed version of the Irish Examiner Wednesday, October 14, 2009