Agricultural Risk Management: A Case Study On Rockmelon Farm At Sepang, Selangor, Malaysia

The aim of this study was to identify risks faced by farmers in agriculture
projects and evaluate their risk management practices. A case study was
conducted on a rock melon farm at Sepang, Selangor involving four farmers and
two officers. Content analysis was used to analyse data collected from interview
sessions. Risks were grouped into three criteria; risks created by farmers, internal
operational risks and external operational risks. Risks by farmers were studied
based on attitude, lack of knowledge/training, non-cooperation among farmers
and non-adherence to SOPs. Risks by internal operation were mainly due to poor
farm management, insufficient fund/capital, diverse farm activities and poor KPI.
For risk from outside operation, the factors were changes in government policy.
For agriculture production, risks were grouped into machine efficiency, pests
and technology. For machine efficiency, the factors were immature technology
and small firm size. For pest, the factors were pest attack and spread of disease.
For technology, the factors were unsuitable technology for local farming, high
cost and maintenance. For risk management practices, participants view risk
management process as risk identification, risk evaluation, risk assessment
and risk control. Risk management strategies to mitigate risks were product
diversification, keeping record on farm activities, enhancing skills and knowledge
in farm management, multitasking by farmers and having a comprehensive risk
management guideline.