Agricultural Risk Management and its Impact on Agricultural Companies’ Revenues: Field Study on the Agricultural Sector - Blue Nile region

Abstract

This study aims to clarify three points, among which are: the agricultural risk management mechanisms that affect the income of agricultural companies, statement of risk management policies that have an impact on the revenues of agricultural companies, explaining how the risks facing agricultural companies in the Blue Nile region are managed and their impact on their revenues. To achieve these goals, the two researchers prepared a questionnaire conducted to a sample of employees and managers working in a number of agricultural companies operating in the Blue Nile Region. The number of the sample to which the questionnaire was distributed to (30 volunteers). After conducting the field study, they came out with the tow hypotheses of the study, in addition to a number of results, the most important of which is that enhancing preparedness and response methods to address agricultural risks to improve the revenues of agricultural companies. First, mapping the risks to which agricultural companies may be exposed to reduce the degree of risk, and the possibility of confronting them if they occur, and gives greater focus to the risks and areas with the highest degree of risk, and companies can be evaluated for their financial and technical ability to confront the risks to which they are exposed. It contributes to raising its response to risk prevention systems and the ability to identify strengths and weaknesses that enable it to overcome these risks when exposed to them. The agricultural sector represents great importance in Sudan in general and in the Blue Nile region in particular, as a large segment of society works in it and finally represents revenues. Agriculture in Sudan is an important activity in the economics of public income, and its importance stems from the fact that it contributes to food security, job opportunities, exports, and the preservation of biodiversity. The two researchers recommend that government agencies specialized in the agricultural sector in the Blue Nile region must work to form an agricultural risk prevention fund because of its significant impact in reducing agricultural risks to which companies operating in this sector may be exposed, in addition to farmers, and on government institutions operating in the agricultural sector. In the Blue Nile Region, governmental institutions working in the agricultural sector to create awareness and guidance bulletins for companies and farmers about the various agricultural risks in the region. The two researchers also recommend the necessity of activating agricultural unions and organizations and urging companies and farmers to join them to help them ward off the risks to which they may be exposed.