Final answer:
Bobby's farm is exposed to an environmental risk due to potential crop damage from natural disasters like storms and droughts. Advances in weather forecasting and agricultural technology may help mitigate these risks, but the dependency of crops on environmental conditions remains a key challenge for farmers.
Step-by-step explanation:
Bobby's farm faces the type of risk known as environmental risk. This kind of risk involves potential losses due to natural disasters such as storms, drought, and other severe weather conditions that can devastate crops. Crops are dependent on environmental conditions, and a change in weather can critically impact the supply and, in turn, the cost of production. In historical contexts, and much the same today, a farmer's livelihood hin-ges on the whims of the weather and environmental stability.
Today, despite the availability of more advanced weather forecasting tools like the National Oceanic and Atmospheric Administration or the Weather Channel, the risk of potential crop failure due to weather remains a significant concern. The damage to crops from adverse conditions means a decrease in supply, which can result from either a severe drought or excessive rainfall leading to floods. However, if technological advancements can develop crops to withstand harsh conditions, this could mitigate some of the risks that Bobby and other farmers face.