Risk Management

1
Risk Management

• Chuck Majeski
• Turner County Young Farmer Advisor

2
Types of Risk Management

• Financial
• Production
• Legal
• Government Programs

3
Financial

• Goals and Management
• Record Keeping
• Income Protection - Insurance
• Price Protection - Use of marketing straegies
• Credit Issues and Sources

4
Goals and Management

• Provides a road map
• Keeps you on track

• Management of money, labor, and time.

5
Record Keeping

• Financial
• Production
• Chemical

• Tax reasons
• FSA Yield Data
• Liability

6
Income Protection

• Crop Insurance
• Yield Based
• Value Based
• Levels of Protection
• CAT
• Various Levels at various costs
• Based upon 3-5 year crop history

• Same insurance from all companies.
• Service provided from each company may vary.

7
Price Protection

• Use of Futures Market
• Can ensure at least break-even price.

• Forward Contracts
• Hedging
• Puts and Calls
• Contract inputs

8
Credit Issues and Sources

• Maintain good credit history
• Pay on time.
• Pay required amounts.
• Interest Rates
• Can vary with your credit history.

• Get credit report from each credit bureau yearly.
• Sources
• Bank
• AgGa Farm Credit
• FSA, SBA
• Georgia Development Authority

9
Production

• Current Technologies
• RR, BT, etc.
• Striptill vs. Conventional Tillage
• Precision Farming
• Integrated Pest Management
• Irrigation Schedules
• Consultant/Scout

10
Current Technology

• Use of BT Technology
• Reduce spray costs.
• Increase yield potential.
• Remember the refuge area.
• Technology fee will increase seed costs.
• Use of Roundup Ready Technology
• Timely sprays, with correct rate.

11
Strip Till vs. Conventional

• Striptill
• Saves time, saves costs, increases moisture and
  organic matter retention.
• Higher initial equipment costs and setup.
• Almost requires use or RR Technology.
• Biggest problem is not willing to change or not
  like ugly farming.

12
Precision Farming

• GPS Guidance
• GIS
• Field history
• Precision Fertilizer Application -Variable Rate
• Yield Monitoring equipment provides follow-up
  input variables for a field.
• Good spots vs. bad spots.

13
IPM

• Keep beneficials as long as possible.
• Use population thresholds to trigger sprays.
• Use various pesticide families each time.
• Use selective pesticides when possible.
• Use of trap crops / border strips when possible.

14
Irrigation Schedules

• Irrigator Pro
• Pan Evaporation
• Cotmam

15
Professional Services

• Scouts
• Even more important with BT crops.
• Consultants
• Keep up-to-date on topics that the producer may
  not be aware of or unfamiliar with.

16
Production cont...

• Enterprise Management
• Cattle
• Row Crop
• Forest/Timber
• Specialty Crop

17
Legal

• Land Leases
• Get agreements in writing.
• Estate Planning
• Use a financial planning expert.
• Tax Planning
• Find a good CPA.
• Liability issues
• Farm and Ranch Insurance

18
Government Programs

• Check with county F.S.A Office
• Various programs for almost all crops and
  enterprises.
• Base payments, quota allotments, etc.
• CRP, FIP, WIP, etc.
• DNR
• Quail Initiative, others available.