00:01
So what are some risks farmers may face? so one thing would be fluctuating prices.
00:23
There's uncertainty and volatility in the prices of agricultural commodities.
00:38
So maybe they would have expected to sell their crops for a certain amount one year, but then it turns out because prices fluctuated, they actually sold it for less, affecting their profitability.
00:54
So another thing would be uncertainty and production risk.
01:01
So things like natural disasters may affect crop yields, for example.
01:10
So therefore there's a certain risk associated with producing.
01:13
We don't really know how much we will get because of factors like weather conditions, pests, diseases, and natural disasters.
01:23
So another thing would be financial risk.
01:29
Farmers need to invest money into growing crops and raising livestock.
01:35
So they may borrow money and possibly go into debt if they cannot repay it.
01:43
They also need to take into account interest rates that they would have to pay back on loans.
01:52
We also need to take into account legal and regulatory risks...