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Risk Management

Risk Management. Chuck Majeski Turner County Young Farmer Advisor. Types of Risk Management. Financial Production Legal Government Programs. Financial. Goals and Management Record Keeping Income Protection - Insurance Price Protection - Use of marketing straegies

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Risk Management

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  1. Risk Management Chuck Majeski Turner County Young Farmer Advisor

  2. Types of Risk Management • Financial • Production • Legal • Government Programs

  3. Financial • Goals and Management • Record Keeping • Income Protection - Insurance • Price Protection - Use of marketing straegies • Credit Issues and Sources

  4. Provides a road map Keeps you on track Management of money, labor, and time. Goals and Management

  5. Financial Production Chemical Tax reasons FSA Yield Data Liability Record Keeping

  6. Crop Insurance Yield Based Value Based Levels of Protection CAT Various Levels at various costs Based upon 3-5 year crop history Same insurance from all companies. Service provided from each company may vary. Income Protection

  7. Use of Futures Market Can ensure at least break-even price. Forward Contracts Hedging Puts and Calls Contract inputs Price Protection

  8. Maintain good credit history Pay on time. Pay required amounts. Interest Rates Can vary with your credit history. Get credit report from each credit bureau yearly. Sources Bank AgGa Farm Credit FSA, SBA Georgia Development Authority Credit Issues and Sources

  9. Production • Current Technologies • RR, BT, etc. • Striptill vs. Conventional Tillage • Precision Farming • Integrated Pest Management • Irrigation Schedules • Consultant/Scout

  10. Current Technology • Use of BT Technology • Reduce spray costs. • Increase yield potential. • Remember the refuge area. • Technology fee will increase seed costs. • Use of Roundup Ready Technology • Timely sprays, with correct rate.

  11. Strip Till vs. Conventional • Striptill • Saves time, saves costs, increases moisture and organic matter retention. • Higher initial equipment costs and setup. • Almost requires use or RR Technology. • Biggest problem is not willing to change or not like “ugly farming”.

  12. Precision Farming • GPS Guidance • GIS • Field history • Precision Fertilizer Application -Variable Rate • Yield Monitoring equipment provides follow-up input variables for a field. • Good spots vs. bad spots.

  13. IPM • Keep beneficials as long as possible. • Use population thresholds to trigger sprays. • Use various pesticide families each time. • Use selective pesticides when possible. • Use of trap crops / border strips when possible.

  14. Irrigation Schedules • Irrigator Pro • Pan Evaporation • Cotmam

  15. Professional Services • Scouts • Even more important with BT crops. • Consultants • Keep up-to-date on topics that the producer may not be aware of or unfamiliar with.

  16. Production cont... • Enterprise Management • Cattle • Row Crop • Forest/Timber • Specialty Crop

  17. Legal • Land Leases • Get agreements in writing. • Estate Planning • Use a financial planning expert. • Tax Planning • Find a good CPA. • Liability issues • Farm and Ranch Insurance

  18. Government Programs • Check with county F.S.A Office • Various programs for almost all crops and enterprises. • Base payments, quota allotments, etc. • CRP, FIP, WIP, etc. • DNR • Quail Initiative, others available.

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