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
In part three of his blog series, “Top 10 Developments in Ag Law and Tax in 2023,” Roger McEowen covers the Corps of Engineers’ mismanagement of Missouri River water levels.
January 30, 2024 02:29 PM
·
Two more key developments in ag law and taxation from 2023, a crackdown on biodiesel fraud and developments in self-employment taxation (#7 and #6), are the topic of today’s Firm to Farm blog post, the second in a series by RFD-TV agri-legal expert Roger McEowen.
January 18, 2024 12:44 PM
·
The start of the review of the most important ag law and tax developments of 2023—that is the topic of today’s Firm to Farm blog post by RFD-TV agri-legal expert Roger A. McEowen
January 04, 2024 12:20 PM
·
As we start the new year, let’s take a look at some of the legislative items from 2023 affecting agriculture that will continue to play out in the political area for months to come.
January 02, 2024 12:00 PM
·
December 22, 2023 11:05 AM
·
Recent developments in ag law and tax — that is the topic of today’s Firm to Farm blog post by RFD-TV-Agri-Legal Expert Roger McEowen.
December 19, 2023 02:45 PM
·
