The discussion of risk is interesting. It is not uncommon for small farms with one or a few crops or animal species to have an annual net income which varies co

The discussion of risk is interesting. It is not uncommon for small farms with one or a few crops or animal species to have an annual net income which varies considerably from year to year depending on weather, disease, pests, market prices, and the cost of inputs such as fuel, fertilizer, etc. Small farmers have to tolerate variations in income greater than most salaried city dwellers. The risks and consequent variations can be reduced by increasing scale, diversifying crops and animal husbandry, and by using financial tools, such as futures. The history of economic development follows this trend even more so over the centuries. Business units become larger, technological processes more diverse and complex, and financial tools are created to smooth out variations in growth. Thus, short term risks are reduced and mild adversities are avoided, but this comes at the cost of increasing long term risks and great catastrophes. Ultimately, global warming may put an end to this strategy.