Economics · Level 3 · 201 words

The Farmer's Choice Before Rain

Original passage © Studio AM, written for Fluency.

A farmer must choose seed before knowing how much rain the season will bring. One variety may thrive when wet but fail in drought. Another yields less but survives with little water. Choosing only the highest possible harvest ignores risk. Choosing only the toughest seed may sacrifice income in ordinary years. The farmer weighs expected return, the outcomes and their likelihoods, alongside the household's ability to survive a poor result.

Several strategies can reduce exposure. Planting more than one variety spreads weather risk. Saving cash or grain creates a buffer. Irrigation can reduce dependence on rain where water and equipment are available. Insurance may exchange a known premium for payment after a covered loss, though cost, trust, and claim rules matter.

No method removes uncertainty. A diverse field can still face a region-wide disaster, and a drought-tolerant seed can meet flood. Information from forecasts, soil, past seasons, and local experience can improve a choice without making it certain.

The economically best decision is not always the seed with the highest average yield. A family unable to absorb one disastrous year may reasonably value resilience more. The choice depends on probabilities, consequences, resources, and which risks can be shared or recovered from.

Comprehension questions

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4 questions
1. What is the main idea of the passage?

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C. Seed choices under uncertain rain balance expected return with resilience, household capacity, information, and ways to share risk.
The passage explains the return-risk tradeoff, several tools, remaining uncertainty, and differing ability to bear loss.

2. Why might a farmer choose a lower-yielding variety?

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D. Its drought survival may protect the household from a result it cannot afford to bear.
The conclusion connects resilience with a family’s limited capacity to absorb disaster.

3. What does “buffer” mean here?

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A. a reserve that reduces the impact of a loss
Saved cash or grain provides support when a bad outcome reduces current harvest.

4. What strategy spreads weather risk across crops?

Show answer for question 4

B. planting more than one variety
The second paragraph directly describes crop variety as a way to spread risk.

Source: Written for Fluency. Original passage © Studio AM, written for Fluency.