Coping With Agricultural Risks

After risk mitigation and transfer strategies have been assessed and implemented, the next step is to accept the remaining risk(s) and take measures to cope with them. Some short-term risk-coping strategies often have negative impacts over the longer term on productive and financial assets, livelihood/enterprise strategies, and the achievement of performance objectives. For example, farmers can be excluded from the supply chain when their coping activities cause assets to be sold or degraded and/or their debt to increase. Examples of coping strategies are presented in the table below.

Supply Chain Specific Production, Marketing, Processing

	Production	Marketing, Processing
Investments in Infrastructure	Repair and/or replace infrastructure	Repair and/or replace infrastructure
Technology	Alter technology for future application	Adopt and promote new technology for future.
Management Practices	Consume/don’t sell products. Seek alternative buyers Seek new products/markets Off-farm employment, as well as non-agricultural enterprises. Adjust to natural resource degradation.	Seek alternative suppliers and buyers. Restructure labor force. Seek new products/markets
Financial Instruments	Sell off financial assets and stocks. Sell off other productive assets Informal and formal credit Non-repayment of loans Seek charity and/or external assistance	Sell off financial assets and inventories Sell off other productive assets Non-repayment of loans
Policy and Public Programs	Safety-net mechanisms	Safety-net mechanisms
Private Collective Action	Collective action of farmer groups to lobby for assistance Protests, petitions to general public and international community	Collective action of supply chain group to lobby for assistance

Support Service Providers

	Support Service Providers
Investments in Infrastructure	Repair and/or replace infrastructure
Technology	Promote and adopt new technology for future
Management Practices	Provide information on alternative suppliers and buyers. Provide advice on new products and markets.
Financial Instruments	Provide emergency financing Purchase financial assets and stocks from supply chain actors Provide loan re-payment plans
Policy and Public Programs	Safety-net mechanisms
Private Collective Action	Action amongst service providers to lobby for assistance.

External to Supply Chain

	National	International
Investments in Infrastructure	Fund, repair, and replacement of infrastructure Investments in new transport and communication infrastructure	Fund repair and replacement of infrastructure
Technology	Develop, promote and adopt new technology for future	Develop and promote new technology for future
Management Practices	Provide information on alternative suppliers and buyers. Provide advice on new products and markets.
Financial Instruments	Loan forgiveness Financial bailouts Emergency disaster funds	Loan Forgiveness Financial bailouts Emergency disaster funds
Policy and Public Programs	Charity or aid from national organizations and institutions	Charity or aid from international organizations and institutions
Private Collective Action	Assistance from national organizations	Assistance from international organizations

Source: Rapid Agricultural Supply Chain Risk Assessment: A Conceptual Framework. The World Bank, Agriculture and Rural Development (ARD) Team.

Coping With Agricultural Risks

Supply Chain Specific Production, Marketing, Processing

Support Service Providers

External to Supply Chain

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