The Management of Agricultural Risk in Bangladesh: A Proposed Process

Abstract

Farmers’ life in the developing world is full of risks. Yet risk management has been a science for companies and industrial process management. This study has tries to develop a process for managing the agricultural risks. In doing so, the study has amply defined the major agricultural risks and pinpointed the consequences of them on farmers’ life in Bangladesh. Government policy failures in managing the agricultural risks and lack of known management strategies have inspired the researchers to develop a process of dealing the agricultural risk. In this article, the risks have been broadly organized into five categories concerning production, financial, marketing, institutional, and personal factors. All those agricultural risks have chronic and far-reaching negative impacts on farmers’ life. The agricultural risks in peasant farming systems of Bangladesh deserve adequate attention of extension systems for sustainable management. In addition, the ways farmers do cope with the situations are still concealed. Therefore, the study proposed a framework for effective risk management in agriculture of Bangladesh. However, much more work will be needed to create an effective risk management environment in Bangladesh agriculture, to build on the outlines laid out here.