December 28, 2022

Production Risk Management & Contingency Planning

In this second episode of a new series on Farm Risk Management, Jenna Nees, Ed Farris, and Michael Langemeier join Brady Brewer to discuss contingency planning for production risk. Minimizing risk through management practices, reducing production variability, and managing ways to transfer some of the production risk should be reevaluated every year. Implementing diversification, flexibility, vertical integration, and new technology while managing costs can help migrate risk for farms and agribusiness’. Having a written contract in place for production and marketing as well as carrying insurance are important strategies to transfer risk to a third party.

A Production Risk Checklist pdf can be found below.

Additional Resources:

Human Resource Checklist

 

This series is based on the Six Pillars of Farm Risk Management course, funded by the North Central Extension Risk Management Education Center. More information on contingency planning is on the Purdue Institute for Family Business’ website, https://purdue.ag/fambiz, under the Strategic Business Planning Focus Area tab.

TAGS:

TEAM LINKS:

RELATED RESOURCES

Financial & Risk Management Strategies for 2023 at Commodity Classic

March 10, 2023

The learning center session presentation slide deck given at Commodity Classic in Orlando, Florida. Presented by the Center’s James Mintert and Michael Langemeier.

READ MORE

Financial Risk Management & Contingency Planning

March 2, 2023

Farming is never the same from year to year – sometimes prices are good, net farm income is high, and other times margins are tight. Planning ahead, or contingency planning for financial hardship is important for any farm operation. How to evaluate farm financials, update financial statements, analyze performance, and when borrowing makes sense.

READ MORE

Experience, Knowledge, & Collaboration: Why Good Managers Make an Effort to Improve

March 1, 2023

Knowledge, experience, and collaboration work hand in hand with one another to improve farm output per unit of input (i.e., productivity). Pursuit of one of these items without the others creates a disparity between farms able to survive and those that thrive in the industry. But the question arises, why do these factors play such a critical role in farm performance? This article reflects on the impact these three factors have on farm productivity and describes how each relates to management strategy.

READ MORE

UPCOMING EVENTS

Commodity Classic 2023

The Purdue University Center for Commercial Agriculture will present a Learning Center Session on Thursday, March 9 entitled Financial and Risk Management Strategies for 2023, at Commodity Classic in Orlando, Florida.

Read More

Monthly Corn & Soybean Outlook Update

Webinar each month following USDA’s release of the updated World Agricultural Supply and Demand Estimates (WASDE). Catch the next monthly update on February 9 for the corn and soybean outlook following release of USDA’s February Crop Production and World Agricultural Supply and Demand Estimates (WASDE) reports. Registration is free.

Read More