Ensuring the financial stability of the farm is one of the farmer’s primary tasks. This is done by ensuring that goods produced on the farm are sold to customers who pay fairly and on time.
The way in which sales are organised depends mainly on the size of the farm. However, given the considerable price fluctuations on the free market and the not always available outlets to local buyers, it is essential to diversify the sales risk, in price and time, ensuring guaranteed outlets for part of the commodity. We can consider contracted disposal – forward contracts with price, contracting contracts with price, giving a high level of security. When estimating the security of part of the production in contracted sales, it is important to take into account the risk analysis of agricultural production and leave ourselves a quantity reserve in case of unforeseen contingencies. By leaving all production to be sold on the open market, the farmer risks a great deal, when in forward or contracted contracts the risk is significantly minimised. More in Area 3: Financial Stability, under 3.3 Planning principles.