LUBBOCK, TEXAS (RFD NEWS) — Farmers and ranchers are using a broader mix of tools to manage risk as markets, weather, and policy uncertainty continue to shift. A new report from the USDA Economic Research Service shows savings and off-farm income remain the most common risk management strategies on U.S. farms.
The report, authored by USDA economists, examined risk management practices from 1996 through 2020. Producers increasingly rely on a combination of on-farm strategies, crop insurance, marketing contracts, government programs, and longer-term planning tools.
Participation in the Federal Crop Insurance Program has remained relatively steady since 2005, but usage has increased among very large farms while declining among smaller operations. Government payments tied to programs like Agriculture Risk Coverage (ARC), Price Loss Coverage (PLC), and Dairy Margin Coverage (DMC) reached fewer than 15 percent of farms in most years.
Succession planning remains another weak spot. Fewer than one-third of producers had a formal succession plan in place by 2019, though adoption increased over time and was more common on larger farms.
Farm-Level Takeaway: Diversified risk tools help protect farm income.
Tony St. James, RFD News Markets Specialist
Sen. Deb Fischer, of Nebraska, mentioned that Congress pushing through year-round E15 sales will do more to help commodity growers than more farm aid, which is currently a reality.
December 09, 2025 03:32 PM
·
Sen. Moran joins us to discuss the farm aid package and the financial reality faced by row crop farmers in his home state of Kansas.
December 09, 2025 02:47 PM
·
Grain farms still have strong balance sheets, but another stretch of low profits will force hard cost cuts, especially on high-rent, highly leveraged operations.
December 09, 2025 11:41 AM
·
The new rule removes prevented-plant buy-up coverage, prompting strong objections from farm groups concerned about added risk exposure.
December 09, 2025 05:00 AM
·
Lawmakers and experts react to the Administration’s long-awaited announcement of “bridge” aid to stabilize farms and offset 2025 losses until expanded safety-net programs begin in 2026.
December 08, 2025 05:40 PM
·
Joe Peiffer with Ag & Business Legal Strategies advises farmers on end-of-year financial planning, including preparing records, avoiding common credit mistakes, and evaluating equipment purchases for 2026.
December 08, 2025 04:43 PM
·
