Tag Archives: Risk Management

Managing Debt in Lean Years

Peter Callan, Extension Agent, Farm Business Management, Northern District

As a former dairyman and agricultural lender, I have sat on both sides of the table when a producer is faced with low milk prices and/or drought conditions. This has been the story during the spring and summer of 2016 with depressed milk and grain prices.  Many producers have been unable to pay their farm’s operating expenses and loan payments on a timely basis. Speaking from experience, this should not deter producers from communicating with their lenders.  Agricultural lenders understand that agriculture is a cyclical business. They realize that current milk and grain prices are below the breakeven costs for many producers. It is during these times that communication between lender and producer is most critical.

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Dairy-Margin Protection Program (MPP)

Jeremy Daubert jdaubert@vt.edu, Rockingham County Dairy Extension Agent

It is time again to consider signing up for the Dairy-Margin Protection Program (MPP). This year’s election period runs through September 30th for the 2016 production year. Every farm that enrolled for 2015 will need to re-enroll before the deadline. You may enroll at a different coverage level than you did the previous year or at the same level. The chart below shows the premiums at each coverage level. The premium is per cwt (100 lbs of milk shipped) and is in addition to the $100 fee. Continue reading

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Virginia Market Maker, Part I: Introduction

Dr. Kim Morgan, Assistant Professor and Kohl Junior Faculty Fellow

Market Maker, an web-based portal that serves as a virtual marketplace for producers, distributors, and sellers, and buyers of agricultural products, seeks to provide farm-to-fork access to participants in the food va-MarketMakerLogo-rgbsupply chain.

It is with great excitement that Virginia Cooperative Extension announces the official launch of Virginia Market Maker on June 9, 2015! Continue reading

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Grain Marketing 101: It’s the Fundamentals

Keith Balderson, Extension Agent, Crop & Soil Sciences, Essex County

 I have had several comments lately relative to the grain markets, such as, “the grain markets stink” and others that I can’t repeat in a newsletter. What’s going on? While there are several factors, much of the drop in the grain markets can be explained by supply and demand fundamentals. Simply put, when supply increases relative to demand, stocks increase and prices fall. And even though current prices are well below your cost of production, the market does not care. Continue reading

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Determining Adequate Farm Liability and Property Insurance Coverage Levels

Peter Callan, Extension Agent, Farm Business Management, Northern District

Farm insurance plays important but often overlooked role in the operation of a farm business.  In many cases, coverage levels are not reviewed and updated until a claim is filed.  Farmers need to carry sufficient insurance coverage in order insure the continuation of the business in the event of a loss. Two commons types of farm insurance are property and liability insurance. Continue reading

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The Management Calendar

By Gordon Groover (xgrover@vt.edu), Extension Economist, Farm Management, Department of Agricultural and Applied Economics, Virginia Tech 

Selective information available that might be useful for fall reading:

  • A must read for all of us involved in agriculture is the current issue of “Choices,” published by the Agricultural and Applied Economics Association and can be found at http://www.choicesmagazine.org/choices-magazine.
  • Fourth Quarter 2013 Theme Articles: Theme Overview: Current Issues in Risk Management and U.S. Agricultural Policy. Risk management issues have taken a central focus in the current agricultural policy debate. This six-article Choices thematic issue focuses on current issues in risk management and agriculture policy and provides an assessment of important issues surrounding the ongoing farm bill negotiations. Continue reading
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