RISK MANAGEMENT FOR FLORIDA CITRUS GROWERS

STRICKER, JAMES A.

Abstract


Eighty-four percent (84%) of Florida citrus growers, responding to a mail survey, agreed that the citrus business has greater risks today than 10 years ago. Risk is the possibility that an outcome or event will not meet expectations. Steps in risk management include: setting goals for the business, knowing personal risk tolerance, knowing the risk bearing capacity of the business, identifying sources of risk, and using appropriate risk management tools. Only 12% of growers reported having written goals for the business. Eighty-nine percent (89%) of citrus growers identified their personal risk tolerance as calculators. Risk bearing capacity of the business is directly related to the liquidity and solvency of the business. The stronger the business is financially, the better it is able to tolerate risk. Risks faced by citrus growers may be classified into five categories: production, price, financial, legal, and human resource risk. Risk management is applying management policies, procedures and practices in a systematic way to the tasks of identifying, analyzing, assessing, treating and monitoring risks.

Keywords


citrus; cold protection

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Proc. Fla. State Hort. Soc.     ISSN 0886-7283