1. Western Center for Risk Management Education Center Update and Emerging Risk Issues Shannon Neibergs Director, WCRME Associate Professor Extension Economist School of Economic Sciences, WSU

2. ERME - national program regional centers

3. ERME legislative authorization Futures Options Agricultural trade options Crop insurance Cash forward contracting Debt reduction Production diversification Farm resource risk reduction And other risk management strategies The Agricultural Risk Protection Act of 2000 authorizes the Secretary of Agriculture acting through NIFA to establish and administer the ERME program. The ERME program shall establish a competitive grant program to educate agricultural producers about the full range of risk management activities including:

4. ERME Risk Management Intro-Risk-Mgmt.pdf http://extensionrme.org/ pubs/Intro-Risk- Mgmt.pdf

5. ERME Risk Areas Production Marketing Financial Legal Human

6. ERME Grant Purpose and Priorities The ERME program provides funding for results based risk management education projects designed to help producers learn and use tools and approaches that can reduce the adverse effects of agricultural risk.

7. ERME Grant Purpose and Priorities The ERME program provides funding for results based risk management education projects designed to help producers learn and use tools and approaches that can reduce the adverse effects of agricultural risk. Funding allows for curriculum and decision tool development but must also incorporate outreach education on using the tool and interpreting its results.

8. ERME Center Operations Centers operate under USDA NIFA: Program authority Administration – National Program Leader Fiscal processes and rules Review panel Operating guidelines

9. ERME Grant Program All ERME Centers coordinate to release a common RFA with the same time frame Each Center releases their regional RFA Through stakeholder input each Center can have regional priorities. www.westrme.wsu.edu

10. WCRME 2016 Regional Priorities Managing production risk as a result of increased climate variability. Food Safety - Proposals addressing legal liabilities with GAP training, post- harvest handling practices, audits, and implementation of food safety plans for direct marketing products that can lessen the chances of a food safety outbreak.

11. Proposed Results & Producer Actions Five levels of producer results in order of increasing producer engagement: 1.Understand 2.Analyze 3.Develop 4.Decide 5.Implement Knowledge Short Term Actions Intermediate Conditions Long Term

12. Proposal evaluation criteria Evaluation Criteria Weight 1Proposed Results40 2Results Verification 10 3Producer Demand20 4 Team Organization Capacity and Collaborators 15 5 Innovative Approach and Review of Past Projects 10 6Wide Application 5

13. ERME Grant Time frame 2016 Grant Program Time Frame: RFA released September 14, 2015 Proposals due November 16, 2015 Applicants notified February 19, 2016 18 month period of performance April ‘16 to October ’17 no extension possible

14. ERME Award Amount Maximum award is $50,000 Typical number of awards is 16 to 17 annually for the Western Center 2016 - 14 Awards totaling $622,249

15. WCRME Funded project geographic distribution * RMA Targeted State

16. Historic Distribution of risk categories in past funded projects – Financial: 36% – Market: 20% – Human: 17% – Production: 17% – Legal: 10%

17. Center – WEC Collaborations Western Extension Committee – Ag Leases in the West – Ag Industry Survey

18. Center – Ag in Uncertain Times http://www.farmmanagement.org/aginuncertainti mesenglish/ http://www.farmmanagement.org/aginuncertainti mesenglish/ 2014 Farm Bill In development: Emerging Financial Stress High global commodity supplies Increasing international competition Low commodity prices Low profitability Increasing debt levels

19. Commodity challenge example – dairy http://www.usdec.org/research-and-data/research-reports

20. Center – Special Emphasis Audiences Native American Beginning Farmer/Rancher Pilot Partners: FRTEP, Working tribal farms and ranches, Confederated Salish and Kootenai Tribes, Intertribal Agricultural Council 4 Montana Reservations: Flathead, Blackfeet, Fort Belknap and Crow Training: Financial records and analysis on business, market and financial planning Goals: Improve access to land and credit, improve working relationships, help beginning Native American farmers and ranchers

21. Ag Risk Library http://www.agrisk.umn.edu/Library

22. ERME mission statement: Managing risk drives success! Educating America’s farmers and ranchers to manage the unique risks of producing food for the world’s table

23. Concluding Remarks Primary activity is our ERME competitive grant program Consistency in date of RFA release mid- September Consistency in RFA – see www.westrme.wsu.edu for last years RFA www.westrme.wsu.edu Ability to plan now to submit application next Fall

24. Thank you! Questions? Shannon Neibergs 509 335 6360 sneibergs@wsu.edu