Question:
The type of farming with the greater risk is:
The type of farming with the greater risk is:
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Exam Tip:
Diversification is a key risk management strategy in agriculture.
Specialization offers economies of scale but comes with higher risk.
In competitive exams, the principle is: the less diversified the farm, the higher the risk.
Diversification is a key risk management strategy in agriculture.
Specialization offers economies of scale but comes with higher risk.
In competitive exams, the principle is: the less diversified the farm, the higher the risk.
Updated On: Aug 27, 2026
- Diversified
- Specialized
- Mixed
- Ranching
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Verified By Collegedunia
The Correct Option is B
Solution and Explanation
Step 1: Understanding the Concept:
This question tests the understanding of different types of farming systems and the risk associated with each. Risk in farming is related to price and yield fluctuations.
Step 2: Analyzing Types of Farming:
Let's define each type and assess its risk level:
• Diversified Farming: This involves growing multiple crops and/or raising different types of livestock. It reduces risk because if one crop fails due to pests, weather, or price fluctuations, the farmer can still rely on other enterprises for income.
_ _ _ _ Risk: Lower
• Specialized Farming: This involves focusing on a single crop or livestock enterprise (e.g., only growing cotton or only rearing poultry). The farmer's entire income depends on that one enterprise. Any adverse event (price crash, disease, crop failure) will have a severe impact.
_ _ _ _ Risk: Higher
• Mixed Farming: This involves growing crops and raising livestock together. It diversifies income sources and reduces risk. The livestock can also use crop by-products, and manure can be used to fertilize crops.
_ _ _ _ Risk: Lower
• Ranching: This is a type of specialized farming focused on livestock (usually cattle). It is similar to specialization and carries a higher risk compared to diversified systems.
_ _ _ _ Risk: Higher
Step 3: Identifying the Greatest Risk:
Among these, Specialized Farming carries the greatest risk because the income is dependent on the performance and price of a single commodity.
While ranching also has high risk, the term "specialized" is the broader and more accurate category for a single-enterprise system.
Step 4: Final Answer:
The type of farming with the greater risk is Specialized farming. Therefore, option (B) is correct.
This question tests the understanding of different types of farming systems and the risk associated with each. Risk in farming is related to price and yield fluctuations.
Step 2: Analyzing Types of Farming:
Let's define each type and assess its risk level:
• Diversified Farming: This involves growing multiple crops and/or raising different types of livestock. It reduces risk because if one crop fails due to pests, weather, or price fluctuations, the farmer can still rely on other enterprises for income.
_ _ _ _ Risk: Lower
• Specialized Farming: This involves focusing on a single crop or livestock enterprise (e.g., only growing cotton or only rearing poultry). The farmer's entire income depends on that one enterprise. Any adverse event (price crash, disease, crop failure) will have a severe impact.
_ _ _ _ Risk: Higher
• Mixed Farming: This involves growing crops and raising livestock together. It diversifies income sources and reduces risk. The livestock can also use crop by-products, and manure can be used to fertilize crops.
_ _ _ _ Risk: Lower
• Ranching: This is a type of specialized farming focused on livestock (usually cattle). It is similar to specialization and carries a higher risk compared to diversified systems.
_ _ _ _ Risk: Higher
Step 3: Identifying the Greatest Risk:
Among these, Specialized Farming carries the greatest risk because the income is dependent on the performance and price of a single commodity.
While ranching also has high risk, the term "specialized" is the broader and more accurate category for a single-enterprise system.
Step 4: Final Answer:
The type of farming with the greater risk is Specialized farming. Therefore, option (B) is correct.
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