May 24, 2024

Managing Strategic Risks on Your Farm

by Michael Langemeier, Brady Brewer, and James Mintert

We’ve recorded a series of short podcasts and accompanying videos to help agricultural producers improve their strategic risk management skills. Farms are exposed to strategic risks that are caused by a wide variety of unanticipated shocks to the operating environment ranging from government policy shifts to disease outbreaks. Although it’s not possible to accurately forecast strategic risks, it is possible to position your farm business such that you can successfully navigate the risks that might occur. After listening to this podcast series, you’ll learn more about strategic risk, what you can do to help mitigate your farm’s strategic risk exposure, and how you can position your farm to not only survive but actually thrive in a risky world.

ARTICLES WITHIN PUBLICATION:

Importance of Managing Strategic Risk

May 24, 2024

Dig into strategic risk management for farm businesses as we discuss what strategic risks are and how to start thinking about your farm’s ability to withstand shocks. This is the first episode in a series focused on helping ag producers learn to manage strategic risks.

The Impact of Strategic Risks

May 31, 2024

In the second episode of the strategic risk series, the Purdue University Center for Commercial Agriculture’s James Mintert, Michael Langemeier, and Brady Brewer provide examples of strategic risks and discuss ways agricultural producers can make their farm operation more resilient to strategic risks.

Improving Your Strategic Risk Plan

June 7, 2024

In the third episode of the strategic risk series, the Purdue University Center for Commercial Agriculture’s team of ag economists, James Mintert, Michael Langemeier, and Brady Brewer discuss the tradeoff between improving efficiency and resilience of the farm business.

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RELATED RESOURCES

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Adding a family member or employee to a farm is a long-term financial decision. These slides and self-assessment tools help evaluate financial feasibility, strategic risk, and business resilience before expanding labor.

Financial Stress on Crop Farms: Who Is Most at Risk in the 2024–26 Downturn?

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Midwest crop producers have experienced a significant downturn in corn, soybean, and wheat prices since late 2023, resulting in a drop in net returns in 2024. Moreover, current expectations are that prices will continue to remain at or below the cost of production for at least a couple more years. Consequently, a key question being asked is as follows: “Who is the most vulnerable financially during this downturn”?

Adoption of Conservation Practices and Farm Goals

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The Land of Opportunity: A Conference for Farmland Owners will be held at two locations on October 5 and October 6, providing farmland owners with valuable information and resources to help them make informed decisions about their land. The conference will feature keynote presentations, educational breakout sessions, and networking opportunities designed specifically for those who own, manage, or have an interest in farmland.

2026 Crop Cost and Return Guide

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The 2026 Purdue Crop Cost and Return Guide provides estimated costs and net returns for planting, growing, and harvesting corn, soybeans, and wheat in the upcoming year. Cost and return information presents information for low, average, and high productivity soils. Early projections point to slightly higher breakeven prices.

2025 Farmland Values & Market Trends

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Indiana farmland prices have continued the trend of record highs in 2025, according to the latest Purdue Farmland Value and Cash Rents Survey results. The average price of top-quality farmland reached $14,826 per acre, a 3.0% increase from June 2024. Statewide, cash rents increased from 1.5 to 1.7% for poor-, average-, and top-quality land.