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
The new antitrust agreement between the Department of Justice (DOJ) and the U.S. Department of Agriculture (USDA) aims to enforce antitrust laws and monitor market activity across the ag sector.
October 17, 2025 12:27 PM
·
Farm CPA Paul Neiffer outlines how producers should navigate evolving Farm Bill provisions and prepare their operations for the next crop year.
October 16, 2025 04:14 PM
·
Heidi Exline with American Farmland Trust shares how their Farm to School initiative helps strengthen the connection between local farms and school food programs.
October 15, 2025 04:46 PM
·
Expect firmer shop prices, leaner inventories, and selective hiring in ag-adjacent businesses — plan parts, service, and financing needs earlier.
October 15, 2025 11:35 AM
·
FFA students in New York City are transforming urban spaces into working farms while gaining hands-on skills that connect city life with the roots of agriculture.
October 14, 2025 04:55 PM
·
A new proposal from the Federal Aviation Administration (FAA) could transform how farmers use drones, allowing commercial operators to fly beyond their visual line of sight.
October 14, 2025 01:51 PM
·
