Human Resource Risk
Many of the risks discussed on this website, although under the heading of production, marketing, financial, or legal risk, can actually be a direct result of the quality and treatment of farm labor. Unhealthy working conditions causing employees to become sick or injured can result in legal issues; careless hiring of inexperienced workers or lack of adequate training can result in damage to crops and machinery; inadequate compensation and lack of encouragement can result in employees with little pride in their work and thus little care in ensuring a quality harvest.
Effective human resource management is also an important part of keeping the farm running smoothly in the event of illness, death, or disability of farm operators.
Strategies for managing human resource risk include:
* Develop employee procedures and management practices: This should include hiring protocol, training schedules, performance review schedule, tips for good communication, development of an employee handbook,
* Disability and/or Life Insurance
* Develop a farm transfer plan or estate plan to ensure business continuity: Is there a family member or employee that wants to continue operating the farm after you retire? Are all family members and employees aware of your plan for the farm? Have the appropriate legal documents been written (wills, trusts, etc.) to ensure a smooth transition?
Additional Human Resources Risk Resources:
Department of Agricultural Economics Agricultural Labor Management Papers
University of Vermont Agricultural Labor Management Website
"Human Resource Considerations for the Hiring Season"
"Farm Transitions Assistance Offered by Mediation Program and UVM Extension" by Matt Strassberg
Presentation on Agricultural Labor Management
HRM Risks and Strategies in Fruit Production. by Bitsch, Fogleman, and Stup, 2004.