1. Original Power Point Created by Chuck Majeski
Risk Management
Original Power Point Created by
Chuck Majeski
Modified by the GA Agriculture Education Curriculum
July 2002

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

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

6. Income Protection Crop Insurance Levels of Protection
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

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

8. Credit Issues and Sources
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

9. Production Current Technologies Precision Farming
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
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 Estate Planning Tax Planning Liability issues
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