Overview

Risk management plays an important role in many farm business decisions, given the uncertainty surrounding prices, yields, Government policies, and foreign markets.

Government programs have been reoriented towards addressing farm risk management in recent years. The Federal Crop Insurance Program (FCIP) is the largest Government-supported risk management program.

USDA, Economic Research Service analyzes farm business risks and risk management strategies, as well as Government programs that address farm risk management. Strategies investigated include:

Yield and revenue insurance
Futures and options
Contracting sales and purchases
Enterprise diversification
Debt management and credit availability
Off-farm employment

Recent Developments in Ad Hoc Assistance Programs for Agricultural Producers Debt Use by U.S. Farm Businesses, 2012–2021 The Stocking Impact and Financial-Climate Risk of the Livestock Forage Disaster Program Federal Programs for Agricultural Risk Management U.S. Agricultural Policy Review, 2022

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With Expanded Options, Organic Producers of Specialty Crops Increase Use of Federal Risk Management Products Use of Federal Risk Management Programs Varies Widely by Specialty Crop USDA’s Corn Output Projections Inform Futures Price Movements A Look At USDA, Economic Research Service’s Commodity Costs and Returns Data Corn and Soybean Farmers Combine Futures, Options, and Marketing Contracts To Manage Financial Risks

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Commodity Costs and Returns Season-Average Price Forecasts

Farm Economy Farm Practices & Management Farm & Commodity Policy