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USDA Managing Production Risk Presentation

Public & Private Partnership Understanding Agriculture's Risk
Funded by: USDA Risk Management Education Initiative
Cooperative State Research Education and Extension Service
USDA Risk Management Agency
Commodity Futures Trading Commission
USDA Office of Outreach

Learning materials and decision tools for Agricultural Risk Management:
Managing Financial, Production, and Price Risk.

"Available to Download"

Chapter 6

Table of Contents

1. Instructor Guidelines
2. Introduction
3. Interrelationship of Production Risks to Other Risk Factors
4. Sources of Production Risk
5. Crop Insurance
6. Yield Risk Crop Insurance Coverage
7. Yield and Revenue Crop Insurance Coverage
8. Crop Insurance Comparison Chart
9. Crop Insurance Premium Calculation and Loss Indemnity Scenario/Examples
10. Miscellaneous Risk Management Programs
11. Where to Get Answers
12. Publication References
13. Acknowledgements
14. Attachments
	a. Crop Insurance Definitions
	b. Crop Insurance State and County Data Table
	c. Individual Crop Insurance Program Fact Sheets
	d. Specific Insurance Program Fact Sheets
	e. Miscellaneous Program Fact Sheets
	f. Risk Management Skill Quiz

The objective of this module, Managing Production Risks, is to give agricultural producers additional knowledge about the sources of production risk and the tools and options they could consider in managing those risks. The information will also provide an ideal resource tool for others through-out the agricultural business community. This section will focus on:

The sources of production risk associated with agriculture;
The sources of production risk that effect the farm/ranch business when alternative actions or plans may be implemented; and
The various production risk management strategies that might be adopted to control or counteract production risk.

This module includes a short synopsis of how production risks associate with other risk factors (financial, marketing, human resource and legal) and the benefits of understanding the interrelationships between those different types of risks.

The sources of production risk section gives producers an outline of possible alternative methods for managing production risks. While most American farmers are excited about the introduction of cutting edge strategies and new technologies in agriculture, it is important to weigh the expected costs versus the benefits when deciding whether to include sustainable agriculture, biotechnology, diversification, and so for the into their annual cropping plans.

The crop insurance section provides a detailed outline about the yield and revenue insurance products available to Pacific Northwest farmers. While the section provides specific insurance provisions and examples for Idaho, Oregon, and Washington wheat growers, it also includes information relating to a variety of crops, as well as pilot (testing) programs currently being offered throughout these states.

The appendices to this section are curriculum fact sheets. They are efficient and easy-to-use summaries for farm and ranch producers. They also can serve as the primary teaching aid for a specific topic or as a follow-up or handout for a speaker to use during a meeting or workshop.