. Business Income Agricultural Losses Farm House Farm BuildingsFarm PropertyFarm Equipment Farm Workers Row CropsOrchardsHorse Ranches Cattle Ranches Poultry Farms Farm Transportation Food Processing Storage/Warehousing Fish Farms SalesFun

. The Risk of Financial Loss  “Risk” has always been part of the business of agriculture. It's an industry built on the unpredictable forces of nature (weather, insects, disease); government regulations; and economic trends 2

. The Risk of Financial Loss  This course will review;  The Farm/Ag Industries exposures to economic loss due to situations covered and not covered by insurance  The types of insurance coverages available throughout the industry  Non insurance considerations for risk control 3

. The Risk of Financial Loss Type and size of the operation Farm/Ranch Processors Warehouse Location of Risk Weather Water ++++ Management ControlsCompliance 4

. Smaller Farmers—The Sale Some use cooperatives to reduce their financial risk and to gain a larger share of the prices consumers pay. In community- supported agriculture, cooperatives sell shares of a harvest to consumers prior to the planting season, Freeing the farmer from having to bear all the financial risks and ensuring the farmer a market for the produce of the coming season. 5

. Farm/Ranch  Two types of farmers that are growing in importance are horticultural specialty farmers and aquaculture farmers.  Horticultural specialty farmers oversee the production of fruits, vegetables, flowers, and ornamental plants used in landscaping, including turf. They also grow nuts, berries, and grapes for wine. 6

. Farm/Ranch  Aquaculture farmers raise fish and shellfish in marine, brackish, or fresh water, usually in ponds, floating net pens, raceways, or recirculation systems. They stock, feed, protect, and otherwise manage aquatic life sold for consumption or used for recreational fishing 7

. Factors Affecting Farm Income Weather Supply &Demand Price Fluctuation Operational Costs Availability Water, Fuel Government 8

. Farm Income (USDA)  According to the U.S. Department of Agriculture, the average net cash farm business income for farm operator households in 2007 was $15,603.  Figure, does not reflect that farmers often receive government subsidies or other payments that supplement their incomes and reduce some of the risk of farming.  Additionally, most farmers—primarily operators of small farms—have income from off-farm business activities or careers, often greater than that of their farm income. 9