The tool of the agricultural entrepreneur is the soil, which is in the open air under the influence of weather phenomena, i.e. rainfall, drought, drought, hailstorms, frost, heat and the important process of soil erosion. The occurrence of severe weather phenomena in recent years is an important factor in the production planning of an agricultural enterprise.
The diversity of crops in the rotation, the nature of the soil, the type of crop, the machinery available, the financial resources available and, of course, the markets for the crops. The planning of crops cultivated on the basis of the above factors must be realistic, e.g. a part of crops requiring large financial outlays (oilseed rape, sugar beet, wheat) and a part of crops with smaller financial outlays (barley, spring wheat, maize), in order not to undermine the financial liquidity of the farm and to minimise the risk of large losses due to frost or spring drought. Of course, it is essential to choose the right varieties for the growing region. For example: sowing 100% of winter crops on a farm carries (apart from greater financial outlays) the risk of frost and not necessarily high yields, while practice shows that, for example, spring crops with sufficient spring precipitation give very decent yields. A large area of a single plant, with possible weather fluctuations, does not always allow to harvest a high yield of good quality.
It is essential – on the basis of knowledge and own experience – to carry out a reliable risk analysis for the crops grown. The risks in agricultural production on each farm are regionally differentiated and require individual analysis (frosts, droughts, periodic flooding of fields, excessive rainfall during harvesting, differences in crop maturity).
A risk analysis will allow the selection of an appropriate rotation that takes into account important factors and minimises their impact on production.
For more on planning in Area 3: Financial Stability, see 3.4 Agricultural Risks.