Human resources are both a source of risk and an important part of the strategy for dealing with risk.  At the core of dealing with that risk, and that potential, is the ability to manage people.  Human resource calamities can hamper even the most carefully made and appropriate risk management decisions.  Those calamities include divorce, chronic illness, and accidental death. 

 

Many of the day-to-day activities of farmers and ranchers involve commitments that have legal implications.  Understanding these issues can lead to better risk management decisions.  Legal issues cut across other risk areas. For example, acquiring an operating loan has legal implications if not repaid in the specified manner.  Production activities involving the use of pesticides have legal implications if appropriate safety precautions are not taken.  Marketing of agricultural products involves contract law.  Human resource issues associated with agriculture also have legal implications, ranging from employer/employee rules and regulations, to inheritance laws.  The legal issues most commonly associated with agriculture fall into four broad categories: 1) appropriate legal business structure, and tax and estate planning; 2) contractual arrangements; 3) tort liability, and, 4) statutory compliance, including environmental issues. 

(After National Crop Insurance Services’ Crop Insurance and Risk Management Primer, Risk Overview, page 35.)

A dynamic management approach is useful for effectively and efficiently managing the complex and changing nature of human resource and legal risks in agriculture.  A strong understanding of these risks can prove valuable not only for avoiding risks, but also for reducing the negative implications of realized human resource and legal uncertainties.

Three articles are presented on the topic of Human Resource and Legal Risk:

1. From the National Crop Insurance Services’ Crop Insurance and Risk Management Primer, we provide an article by Dr. Laurence M. Crane entitled Human Resource and Legal Risk Management.

2. From Ohio State University, we provide an article by Bernard L. Erven entitled The Role of human Resource Management in Risk Management.

3. From the University of Arkansas’ John Copeland and the RMA website, we provide an article entitled Legal Framework for Risk Management.

These articles were selected for their relevance, ease of understanding, and completeness; however, they do not provide an exhaustive discussion of human resource and legal risk.  Readers desiring additional information about human and legal risk are encouraged to explore the reference links provided

below.

 

Additional References

  

Library Sources

• National Ag Risk Education Library: http://www.agrisk.umn.edu/;

• Northeast Center for Risk Management Education: http://www.necrme.org/

Articles

• Occupational Safety: http://www.ncfh.org/docs/fs-Occ%20Health.pdf;

• Human Resource Risk Management: ;

• Human Resource Management: http://aede.ag.ohio-state.edu/people/erven.1/HRM/;

• Farm and Ranch Personnel Management: http://www.agmanager.info/hr/management/Personnel%20Management.pdf;

• How Growers can reduce liability risk: http://www.agrisk.umn.edu/cache/ARL00687.pdf.

 

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