Risk Assessment on an Agricultural Farm

cdf456ea-270c-4fff-b3ae-b64f46e3d0f120240531090508724wseas:wseasmdt@crossref.orgMDT DepositWSEAS TRANSACTIONS ON BUSINESS AND ECONOMICS2224-28991109-952610.37394/23207http://wseas.org/wseas/cms.action?id=40161320241320242110.37394/23207.2024.21https://wseas.com/journals/bae/2024.phpRisk Assessment on an Agricultural FarmKristinaPavlovaInstitute of Information and Communication Technologies, Bulgarian Academy of Sciences, “Acad. G. Bonchev” str. bl.2, Sofia, BULGARIAElisavetaTrichkova-KashamovaInstitute of Information and Communication Technologies, Bulgarian Academy of Sciences, “Acad. G. Bonchev” str. bl.2, Sofia, BULGARIAStanislavDimitrovInstitute of Information and Communication Technologies, Bulgarian Academy of Sciences, “Acad. G. Bonchev” str. bl.2, Sofia, BULGARIALivestock production is a major economic sector concerned with the rearing, care, and production of farm animals. Animal nutrition is an important component that has the potential to significantly impact the profitability of livestock production. The production of own feed has many positive aspects. Producing its own feed ensures its quality and reduces farm costs, but it also carries risks for farmers. This paper assesses the risk on the farm, and suggests intelligent solutions to optimize the resource functioning of a livestock production system and forecasting of management decisions and to achieve better organization of farm processes, labor resources, etc. Based on the assessment, the ability to cover costs and service debt are determined and the profitability of the business is assessed. The average annual yield and its standard deviation are displayed in the paper. This statistical measure indicates the degree to which yields over a given period deviate from the average by kg/dec. The paper analyses the Business Risk indicator, which is an assessment of the level of sales and revenue, i.e. whether the farm can cover its costs and make a profit. It determines whether the company can operate as a profitable enterprise. Through the computation and examination of financial and business risk indicators, farmers may optimize their expenses and ultimately turn a profit.5312024531202414181427116https://wseas.com/journals/bae/2024/c385107-2784.pdf10.37394/23207.2024.21.116https://wseas.com/journals/bae/2024/c385107-2784.pdf10.1007/978-0-387-71815-6_1Huirne R., Meuwissen M. & Asseldonk M. Importance of Whole-Farm Risk Management in Agriculture, Handbook of Operations Research in Natural Resources, 3–15. 2007. DOI: 10.1007/978-0-387-71815-6_1. 10.1016/s1574-0072(01)10005-8Moschini G., Hennessy DA., (1999), Uncertainty, Risk Aversion and Risk Management for Agricultural Producers. Economic Staff Paper Series. 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