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Farm Risk Management

Contents
 
Contents
 

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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For more information, contact: Robert Dismukes

Web administration: webadmin@ers.usda.gov

Updated date: August 12, 2009