Overview
- Uncertainty in prices, yields, government policies, and foreign markets means that risk management plays an important role in many farm business decisions.
- A number of risk management tools and strategies are available to farm operators, including yield and revenue insurance, futures and options, contracting sales and purchases, enterprise diversification, debt-level management, credit availability, and off-farm employment.
- Government programs addressing farm risk management have also played a larger role in U.S. farm policy in recent years.
- Over 270 million acres are now covered by crop insurance, and government insurance subsidies exceed $5 billion annually.
ERS analyzes farm business risks and risk management strategies, as well as government programs that address farm risk management.
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