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:
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.
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UPCOMING EVENTS
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 MoreWebinar 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.
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