# 40 - Analysing Risk in Farming Systems

How exposed am I? Assessing and managing risk within our farming systems. I love the principle that in order to succeed, it is the business with the most robust and strategic business model that gets the results. Often it is the quality of our business model and how we execute on this model that is the difference between the average and the top 20%. With this in mind, and based on your most recent years of performance, how robust and risk-aware is your business model? We operate in a unique climate, with unique economic factors, relative to farmers in other countries, and a high exposure to price variability and international markets. We operate businesses based on biological systems often exposed to the vagaries of our environments and the markets. In this podcast, I am pleased to interview my father, Tim Hutchings, and discuss risk and volatility in Australian Agriculture. We explore the importance of designing risk-aware and long-term sustainable farming systems that have inherent flexibility, focused on minimising losses as much as pursuing windfall profits. Dr. Tim Hutchings is a successful farmer and farm consultant in the Riverina, NSW. He is a Nuffield Scholar and Researcher and has recently completed his PhD analysing and (for the first time) quantifying risk and volatility of our farming systems. As we dust ourselves off from the challenges of a dry season, reflect and reset for a new season, I encourage you to use this podcast as your opportunity to deeply interrogate the appropriateness of your current farming system, and as a catalyst to ask better questions and consider making some deliberate and measured changes. Enjoy this podcast! Regards, Jeremy Hutchings