During which farm life cycle stage is a farmer likely to take risks to expand operations?

During the growth stage of the farm life cycle, a farmer is likely to take risks to expand operations. This phase is characterized by a period of increasing scale and productivity. Farmers may invest in new technologies, expand land acreage, or diversify their crop or livestock operations to capitalize on market opportunities and increase profitability.

Taking calculated risks during this stage is essential for growth, as farmers aim to strengthen their competitive position and achieve economies of scale. Successful growth can lead to enhanced revenues and can also improve the farm's overall sustainability and resilience in the face of changing market conditions.

The entry stage typically involves establishing the farm and may not be as focused on expansion due to limited resources and the need to build a fundamental base. Consolidation involves stabilizing operations typically after periods of growth and may involve more conservative management strategies. The exit stage is associated with winding down operations or transferring ownership, where taking risks to expand would not be applicable. Thus, the growth stage is the most critical for farmers actively pursuing expansion through risk-taking.