Farmers Need Detailed Plan for Managing Risks

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Many farmers have completed their 2021 planting season and are looking forward to 2022 with some optimism. The good news is, sale prices for commodities are trending up; unfortunately, so are the costs associated with producing them. One question these farmers will be asking this upcoming year, “How can we better manage risk?”

Risk is an important aspect of the farming business. The uncertainties inherent in weather, yields, prices, government policies, global markets, and other factors that impact farming can cause wide swings in farm income. The most successful farmers are now looking at a deliberate and knowledgeable approach to risk management as a vital part of their plan. For them, risk management means farming in a more rapidly changing world. It is the ability to deal with risks that comes with new farming opportunities.

Farmers generally deal with five types of risks. They are:

  1. Production risk
  2. Price or market risk
  3. Financial risk
  4. Institutional risk
  5. Human or personal risk

Farmers will have the opportunity to learn more about these risks and develop their personal risk management plan by attending a series of “Developing Personal Risk Management Plans and Marketing Strategies Workshops.”  The objective of these workshops is to teach farmers how to understand and implement farm business planning principles for successful risk management decision-making. By attending these workshops, farmers can learn about new risk management tools and services along with those already established. With these tools, local farmers can build the confidence they need to deal with both the risks and the exciting opportunities for the future.

The first in the series of workshops will be held on January 25, 2022, at the O.P. Owens Agriculture Center in Lumberton. The workshop will be from 9:00 a.m. – 4:00 p.m., with registration starting 8:30 a.m. The dates for the other workshops are February 22, March 15, and March 29. Travel will be reimbursed to the workshops and lunch will be provided. The deadline to register is January 21. Pre-registration is required to participate and register as early as possible as space is limited to 40 participants. For more information, please contact Nelson Brownlee, Extension Area Small Farms Agent, at 910-671-3276, by email at Nelson_Brownlee@ncsu.edu, or visit our website at http://robeson.ces.ncsu.edu/.