Human Risk

What is Human Risk?

See also:

If there are humans on or near your farm, you have human risks to contend with. Human risks arise from the four D’s: disagreement, divorce, death, or disability of an essential owner, manager, or employee. It also includes risks related to illness and high stress and to poor communication and people-management practices.

Humans are not just risk liabilities, however. They also are a great strategy for dealing with and managing risk and even finding opportunities in mitigating risk.

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Some Sources of Human Risk

Yourself
Family
Employees
Neighbors
Visitors
Safety (chemicals, structures, machinery, manure/compost)

Some Questions to Ask to Assess Your Human Risk

Safety:

Do I have a safety plan and training manual for all parts of the operation? (See Standard Operating Procedures page)
Do the people who come here know how to deal with potential safety issues?
Do I have liability insurance in case any safety issues come up?

Communication:

Have my family/employees and I communicated our goals for the operation?
Do we understand each other's goals?
Where are the differences? How can we deal with them?

Illness/Injury:

What will happen if I get sick or hurt?
Do I have health, disability, and long-term care insurance?
Can people find important documents (like wills, property titles, banking and legal records)?
Does someone besides me know the passwords to access online accounts?
Am I managing my health and stress levels to stay healthy?

Succession:

When I want to retire, do we have a succession plan?
What will happen to my operation when I die? Do I have an up-to-date will?
Do I know all my options for transferring assets to the next generation?
Do I need professional help with transition planning?

Relationship:

What happens if my farm/life partner and I disagree or separate/divorce?
Do I have good relationships with my neighbors?
Do my relationships with them add to or remove risk for the operation?

Source: USDA Risk Management Agency. "Introduction to Risk Management: Understanding Agricultural Risks." Revised December 1997

This information made available due to a grant from the USDA Risk Management Agency.

Tools for Mitigating and Planning for Human Risk

Improve safety, reduce legal risks, and help when operator is absent or sick with written standard operating procedures and safety plans.
Do goal-setting and planning with family and employees.
Manage your stress to stay healthy.
Do estate and transition-planning for continuity of the operation.
Get insurance: life, health, disability, and long-term care with coverage appropriate for estimated risks.
Develop a contingency plan.

Remember: It's important to choose the tools that are best for you, your level of risk tolerance, and your operation.

Resources

General

Risk Management Checklist - USDA Risk Management Agency
Managing People Risks - Cornell. Short article about identifying and managing human risks.
Farm Security Checklist - Useful resource for identifying and mitigating some legal and human risks on your operation. (Ohio Dept of Ag)

Family Relationships

Managing Family Relationships - Farm and Ranch Survival Kit (Issue 3) - Oregon State University. How to manage family business relationships, disagreements, family meetings, and stress levels.

Insurance

Safety

California Farm Bureau Farm Safety Tips. Tips on everything from fire safety to good nutrition.
General Tractor Safety - Colorado State University. Quick tips and safety guidelines.
Safe Use of ATVs - Penn State. Choosing the right ATV for the job; recognizing and dealing with safety issues.
Farm Hazard Inspection Checklist - University of Washington Extension. For everything from buildings to fields, chemicals to equipment.

Stress Management/Self Care

Managing Personal Stress on Sustainable Farms and Ranches - ATTRAnews. Personal stories, resources, tips and tricks from farmers and ranchers.

Transitions, Estate Planning, and Succession

Transitions and Succession - Farm and Ranch Survival Kit (Issue 4) - Oregon State University. Short articles on estate planning, smoothly transitioning into, or taking over the family farm.
Small Business Transition: "Starting the Conversation" - YouTube resource (6:25). Nice video starring farmers who have recently dealt with farm transition planning.

Additional Human Risk Management Resources