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AEA507Agricultural Sciences3 Unitsintermediate

Agricultural Risk Management

This course introduces the principles of risk management in the agricultural sector. It covers the nature of agricultural production, the sources and types of risks, and various risk mitigation strategies. Topics include enterprise diversification, vertical integration, hedging, leasing, and the role of information and technology. Students will learn about agricultural insurance, risk quantification, and the role of government and ICTs in managing agricultural risks.

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40h
Study Time
13
Weeks
3h
Per Week
basic
Math Level
Course Keywords
Agricultural RiskRisk ManagementInsuranceICTMitigation Strategies

Course Overview

Everything you need to know about this course

Course Difficulty

Intermediate Level
Builds on foundational knowledge
65%
intermediate
➕
Math Level
Basic Math
📖
Learning Type
Theoretical Focus

Course Topics

Key areas covered in this course

1

Agricultural Production

2

Risk Assessment

3

Risk Mitigation

4

Agricultural Insurance

5

Government Policies

6

Information Technology

Total Topics6 topics

Ready to Start

No specific requirements needed

This course is designed to be accessible to all students. You can start immediately without any prior knowledge or specific preparation.

Assessment Methods

How your progress will be evaluated (3 methods)

assignments

Comprehensive evaluation of course material understanding

Written Assessment

tutor-marked assessments

Comprehensive evaluation of course material understanding

Written Assessment

final examination

Comprehensive evaluation of course material understanding

Written Assessment

Career Opportunities

Explore the career paths this course opens up for you

Farm Manager

Apply your skills in this growing field

Agricultural Consultant

Apply your skills in this growing field

Insurance Agent

Apply your skills in this growing field

Policy Analyst

Apply your skills in this growing field

Agribusiness Manager

Apply your skills in this growing field

Industry Applications

Real-world sectors where you can apply your knowledge

AgricultureInsuranceFinanceGovernmentTechnology

Study Schedule Beta

A structured 13-week journey through the course content

Week
1

Module 1: Nature of Agricultural Production

2h

Unit 1: Characteristics of Agricultural Production

2 study hours
  • •Define agriculture and its unique characteristics.
  • •Discuss the biotic and abiotic factors influencing agricultural production.
  • •Explain the concept of production risk and its implications.
Week
2

Module 1: Nature of Agricultural Production

2h

Unit 2: Nature of Agricultural Products

2 study hours
  • •Describe the nature of agricultural products, including perishability and bulkiness.
  • •Explain how these characteristics affect transportation, demand, and supply.
  • •Differentiate agricultural products from industrial products.
Week
3

Module 2: Meaning, Sources and Types of Risk

2h

Unit 1: Meaning and Nature of Agricultural Risk

2 study hours
  • •Define risk and uncertainty in the context of agriculture.
  • •Explain the nature of agricultural risks and their impact on farmers' welfare.
  • •Distinguish between risk and uncertainty with examples.
Week
4

Module 2: Meaning, Sources and Types of Risk

2h

Unit 2: Sources of Risk in Agriculture

2 study hours
  • •Identify the sources of risk in agriculture, including natural hazards and market fluctuations.
  • •Discuss the implications of these sources on agricultural production.
  • •Analyze the impact of social uncertainty, actions, and inactions on agricultural risk.
Week
5

Module 2: Meaning, Sources and Types of Risk

2h

Unit 3: Types of Risks

2 study hours
  • •Explain the different types of risks in agriculture, such as production and price risks.
  • •Differentiate between input and output risks with examples.
  • •Identify the sources of each type of risk.
Week
6

Module 2: Meaning, Sources and Types of Risk

2h

Unit 4: Effects of Risk on Agricultural Industry

2 study hours
  • •Discuss the effects of risk on agricultural production, investment, and welfare.
  • •Explain how risk affects farmers' decisions and economic efficiency.
  • •Analyze the impact of risk on long-term productive capacity in agriculture.
Week
7

Module 2: Meaning, Sources and Types of Risk

2h

Unit 5: Risk Attitude of Farmers

2 study hours
  • •Explain the different risk attitudes of farmers: risk averters, risk neutral, and risk seekers.
  • •State the determinants of farmers' risk attitudes, such as age and education.
  • •Discuss the implications of each category of risk attitudes on the adoption of innovation.
Week
8

Module 3: Risk Management

2h

Unit 1: Meaning and Scope and Risk Management

2 study hours
  • •Explain the meaning and scope of risk management.
  • •Identify the threefold approach to risk management.
  • •State the principles of risk management.
Week
9

Module 3: Risk Management

2h

Unit 2: Risk Management Process and Benefits of Risk Management

2 study hours
  • •Discuss the risk management process, including risk identification and assessment.
  • •Explain the components of the risk management process.
  • •State the benefits of the risk management process to farmers and the national economy.
Week
10

Module 4: Strategies in Risk Management

2h

Unit1: Enterprise Diversification and Vertical Integration as Risk Mitigation Methods

2 study hours
  • •Explain enterprise diversification as a means of risk mitigation.
  • •Discuss vertical integration and explain its use as a risk mitigation method.
  • •Differentiate between enterprise diversification and vertical integration.
Week
11

Module 4: Strategies in Risk Management

4h

Unit 2: Hedging, Leasing and Off-farm Employment as Risk Mitigation Methods

2 study hours
  • •Explain the meaning of hedging and leasing.
  • •State the advantages of leasing.
  • •Discuss the use of off-farm employment as a risk mitigation method.

Unit 3: Management Alternatives, Information and Technology as Risk Mitigation Methods

2 study hours
  • •Explain management principles that can be used to mitigate specific agricultural risks.
  • •State the importance of information in risk mitigation.
  • •Discuss the roles of technology in risk mitigation.
Week
12

Module 4: Strategies in Risk Management

4h

Unit 4: Risk Transfer/Sharing Strategies

2 study hours
  • •Explain the meaning of risk transfer/risk sharing.
  • •Discuss the means of risk transfer, including contracts and insurance.
  • •Analyze the role of NIRSAL in risk sharing.

Unit 5: Nigerian Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL)

2 study hours
  • •State the goals of NIRSAL.
  • •Discuss the NIRSAL concept and its five pillars.
  • •Explain the benefits of NIRSAL initiatives to each stakeholder.
Week
13

Module 4: Strategies in Risk Management

2h

Unit 6: Risk Coping Strategies

2 study hours
  • •Explain the meaning of risk coping strategy.
  • •State and discuss the means of coping with specific risks in agriculture, such as liquidity and borrowing.
  • •Discuss the role of disaster relief grants.

This study schedule is in beta and may not be accurate. Please use it as a guide and consult the course outline for the most accurate information.

Course PDF Material

Read the complete course material as provided by NOUN.

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Study Tips & Exam Preparation

Expert tips to help you succeed in this course

1

Review all tutor-marked assignments (TMAs) and their solutions.

2

Create a concept map linking risk types, sources, and mitigation strategies.

3

Focus on understanding the objectives and functions of NIRSAL.

4

Practice calculating expected values and composite risk indices.

5

Study the conditions for insurability of agricultural risks.

6

Summarize the roles of government and ICTs in risk management.

7

Allocate time to understand the characteristics of agricultural production and products.

8

Create flashcards for key terms and definitions.

9

Practice answering past exam questions.

10

Form a study group to discuss challenging concepts and share insights.

11

Prioritize topics based on their weight in the course marking scheme.

12

Ensure you understand the different risk attitudes of farmers and their implications for innovation adoption.

13

Review the benefits of risk management to the farm enterprise, national economy, and farmers/workers.

14

Focus on the practical applications of risk management strategies in real-world scenarios.

15

Ensure you understand the different layers of risk and the appropriate policy responses for each.

16

Review the role of information and communication technologies (ICTs) in risk management.

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