It is found that these responses have strong implications, including on the ability of different policy instmments to reduce farming risk and increase farmers’ wellbeing. If there are risks that are somehow covered by government programs, the incentives to use other strategies (e.g. insurance or diversification) are then reduced. A good understanding of the net impact of government policies related to risk management in agriculture necessarily includes the analysis of interactions between different sources of risk, and different farmer strategies and government programs.