Risk management strategies for farmers

Abstract

Agricultural producers face many sources of variability which can affect the cash flow, net returns, and economic progress of the farm firm. The risks which producers face and the risk management responses available to producers have been significantly affected by the 2008 Farm Bill. The Average Crop Revenue Election (ACRE) program appears to significantly risk management strategies and impact direct payments, marketing loans and loan deficiency payments. Less than fully equity in the farm business creates financial risk which may compound the effects of the business risks which all farmers face. Farmers typically combine production, marketing, and financial responses to risk and practice risk balancing. Past research has often failed to consider the sequential nature of the decision-making and knowledge which becomes available during the production process. For example, grain storage investments are often analyzed assuming storage will be used each year without considering the effect of alternative market situations. When you are citing the document, use the following link http://essuir.sumdu.edu.ua/handle/123456789/36039