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

Types of Risk Management Financial Production Legal Government Programs

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

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

Record Keeping Financial Production Chemical Tax reasons FSA Yield Data Liability

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

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

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

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

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

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”

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

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

Irrigation Schedules Irrigator Pro Pan Evaporation Cotmam

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

Production cont Enterprise Management Cattle Row Crop Forest/Timber Specialty Crop

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

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