VAE-0017
QUESTION
Greater risk is involved in?
OPTIONS
(A) Dry farming
(B) Mixed farming
(C) Diversified farming
(D) Specialised farming
ANSWER
(D) Specialised farming
EXPLANATION
Specialised farming depends heavily on one major enterprise, so failure of that enterprise or an adverse price change can affect most of the farm income, creating greater risk. Mixed and diversified farming spread risk across several enterprises, while dry farming has climatic risk but is not the expected classification in this farm-organization comparison. Hence, option (D), specialised farming, is correct.