The Changing Role of Risk in Livestock Production Management

Conference Organizers Extension Risk Management Education Pre-conference Organizers: C. Wilson Gray Department of Agricultural Economics and Rural Sociology, University of Idaho Kevin KlairCenter for Farm Financial Management, University of Minnesota Shannon NeibergsWestern Center for Risk Management Education, School of Economic Sciences, Washington State University

Pre-Conference Theme Risk has largely been transferred from crop production to livestock production Energy Policy Act of 2005 and Energy Independence and Security Act of 2007 are responsible for establishing U.S. ethanol markets that have increased corn price trend and price volatility and increasing farm income.

Livestock Marketing Information Center Data Source: Iowa State University

Livestock Marketing Information Center Data Source: USDA-AMS & USDA-NASS, Compiled & Analysis by LMIC

Pre-Conference Theme Risk has largely been transferred from crop production to livestock production Drought We recall no time in our careers in which weather has been so important to both grain and livestock producers as it is this year. Daily Livestock Report Steve Meyer & Len Steiner, March 15, 2013

Pre-Conference Theme Risk has largely been transferred from crop production to livestock production Producer effective crop insurance program.

Federal Crop Insurance Corp Loss Ratios Loss ratio > 1.0 means indemnity received > premium payment

1995 to 2011 Federal Crop Insurance Corp Loss Ratios Schnitkey, Gary, Drought and Crop Insurance Loss Experience in 2012, Farmdoc Daily, March 19, 2013

Pre-Conference Format Agenda Brian Gould, Risk Management Facing Issues Facing Dairy Producers Stan Bevers, Using QuickBooks for Livestock Accounting and Financial Analysis Break Dale Nordquist, Integrating QuickBooks into FINPACK Shannon Neibergs, Risk Management Issues Facing Beef Cattle Production Jeff Tranel, Pasture Range Forage Insurance Tools for Managing Drought Introductions Questions Questions/comments are invited during the presentation