Agribusiness and Commodity Risk

This edited collection discusses risk management in world agricultural markets. The emphasis is on the use of exchange-traded and OTC derivatives to manage price risk. Two specifically useful chapters are on collateral management and the development of warehouse receipt systems in developing countries. Chapters on the credit risk of OTC derivatives and sound practices for end-users of derivatives are informative but not specific to commodities. This is not an introduction to soft commodities markets and will appeal to soft commodities professionals with no prior experience with futures, forwards, swaps or options.

Overview

A knowledge- and experience-sharing forum for managing agricultural risk in development

Risk and uncertainty are inherent in agriculture and commodity supply chains. Recent food safety threats, the outbreak and spread of avian influenza, major swings in food and other commodity prices, and growing concerns about climate change are among the many shocks and/or emerging trends that are raising the profile of agricultural risk and interest in more effective and sustainable risk management strategies and approaches.

The Forum for Agricultural Risk Management in Development (FARMD) is a network of practitioners seeking to enhance the sharing of experience and knowledge in agricultural risk management. FARMD provides a platform for sharing experiences and information amongst agricultural risk management practitioners, but also provides a space for learning, capacity building, and advancing knowledge in agricultural risk management. By improving the practice of agricultural  risk management, the network seeks to strengthen investments in the agricultural sector and reduce vulnerabilities of stakeholders.

Mission and objectives

The mission of FARMD is to promote systematic knowledge exchange in agricultural risk management through a dynamic knowledge-management platform that enables stakeholders to share experiences, gain access to information and best practices, engage in constructive dialogues, and build partnerships.

The forum is a collaborative effort that builds upon the strengths of its members and works as a network to achieve the following objectives:

• Stimulate dialogue and experience sharing between public and private actors with different perspectives and approaches to effectively manage conventional and emerging agricultural risks in developing countries,
• Promote collaborative work and build partnerships between actors in agricultural risk management.
• Promote learning and advance knowledge in agricultural risk management.
• Improve coordination and reduce duplication by providing first-hand information on upcoming events and activities related to risk management.
• Enable actors in developing countries to access examples of good practice and contact relevant practitioners.

The Membership

The strength of FARMD depends on the level of engagement among its members and users. FARMD is open to interested individuals and organizations working in agricultural risk management, mainly in developing countries. For this reason, its membership is highly diverse, encompassing multilateral and bilateral organizations, NGOs, private entities, regional organizations, actors in agricultural supply chains, and government organizations, among others. Each member brings experiences, skills, and knowledge to the forum. To learn more about the different types of membership affiliations, please visit the FARMD Membership page.

The FARMD online knowledge exchange platform gives you access to the latest information on agricultural risk management in developing countries, best practices, a library of documents/reports, and a set of tools to support and enhance communities of practice related to specific and general agricultural risk management topics.