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Posts tagged: risk management

Beginning Rancher Applies Tribal Traditions and USDA Risk Management Tools to Help Grow Her Business

James McCuen, Bureau of Indian Affairs and Shawna Kalama

James McCuen and Shawna Kalama discuss business opportunities available for beginning ranchers. USDA-RMA photo by Jo Lynne Seufer.

Shawna Kalama is a proud member of the Confederated Tribes of Warm Springs and the Confederated Tribes and Bands of the Yakama Nation. She’s also a beginning rancher, pursuing her dream the past few years near the Cascade Mountains on the Yakama Indian Reservation in Washington State. Kalama has successfully leveraged several USDA programs to simultaneously support both her entrepreneurial education goals and her growing livestock operation.

She began earning her business degree at Heritage University, and recently participated in a risk management education program, sponsored by the USDA’s Risk Management Agency (RMA). This week, the agency announced that $8.7 million in cooperative agreement funding is available for the risk management education program for fiscal year 2016. The program introduces the agency’s risk management tools, crop and livestock insurance programs and educational partnerships to new and beginning, and traditionally underserved farmers and ranchers. The curriculum includes an overview of RMA’s Strengths, Weaknesses, Opportunities and Threats (SWOT) analysis tool, which identifies potential problems, and finds solutions and resources to help beginning farmers and ranchers manage risks. Nearly 90,000 producers participated in risk management education events in 2015. Read more »

Public-Private Partnerships a Crucial Element in Crop Insurance Safety Net

Corn in Iowa

Corn in Iowa was among the crops across the nation hit hard by the 2012 drought. The rapid response by crop insurance companies to that crisis demonstrated why public-private partnerships are good for today’s agricultural economy.

Farming is in my blood, and I’m proud of that. I grew up on my family’s sheep ranch in northern Utah and managed our raspberry farm before coming to USDA. For the past three years, as Administrator for the Department’s Risk Management Agency (RMA), I’ve sat across the table and listened to producers who, like myself back in Utah, couldn’t find an insurance product for their operation.

Natural disasters and unexpected events make agriculture a risky business, so having a strong safety net is essential for today’s farmers and ranchers. Nobody knows that better than RMA. Read more »

Crop Insurance Keeps the Rural Economy Strong and Sustainable

USDA New Farmers website screenshot

Beginning farmers may explore new web resources to help them get started. USDA photo.

Agriculture is an inherently risky business. Some risks are everyday business risks; some risks are brought on by natural disasters. Producers need to regularly manage for financial, marketing, production, human resource and legal risks.

Helping farmers and ranchers overcome such unexpected events, not only benefits individual producers, but also rural communities that depend on agriculture. Over time, resilient rural producers help form robust rural economies, which build a strong economic foundation and provide improved access to credit for the next generation of beginning farmers and ranchers. Read more »

Crop Insurance and Conservation Compliance

Just-picked green zucchini squash waits to be loaded onto a processing trailer at Kirby Farms in Mechanicsville, VA.

Just-picked green zucchini squash waits to be loaded onto a processing trailer at Kirby Farms in Mechanicsville, VA. Kirby Farms is a third-generation family farm that covers 500 acres and generates produce and grains on a year-around operation. USDA photo by Lance Cheung.

Crop insurance has long been an important part of the farm safety net, providing a reliable and cost-effective risk management tool that ensures farmers can continue to farm even after tough years. Just as important is the planning and good stewardship of the land that farmers perform to ensure a sustainable food supply.

USDA has a long standing mission of helping people help the land. USDA provides assistance to producers with farm-level natural resource assessments and conservation planning as well as financial and technical assistance through a variety of voluntary conservation programs. USDA also provides the technical services necessary to implement conservation compliance provisions. Read more »

Secretary’s Column: The Farm Bill at Work in Your State

Last week, USDA marked the six-month anniversary of the signing of the 2014 Farm Bill. I am proud to say that we’ve made important progress on every title of the Farm Bill, including issuing disaster assistance payments, updating risk management tools, modifying farm loan programs, announcing new support for agricultural research, establishing new conservation programs, and much more.

My team and I at USDA have gathered together some top statistics that show how the Farm Bill is at work in your state—and the record results we’ve achieved this time around. For example: Read more »

Strengthening the Modern Farm Safety Net for Specialty Crop Growers

Beginning in 2014, crop insurance will be available as a pilot insurance program for cucumbers in Delaware, Illinois, Indiana, Maryland, Michigan, North Carolina and Texas.

Beginning in 2014, crop insurance will be available as a pilot insurance program for cucumbers in Delaware, Illinois, Indiana, Maryland, Michigan, North Carolina and Texas.

As consumer demand for fresh fruit and vegetables increases, so do the production risks for the nation’s farmers as they grow these crops.  To meet this challenge, the Risk Management Agency (RMA) pays close attention to the changing agriculture sector to ensure that crop insurance is made available where feasible.

A tremendous amount of work goes into offering a new insurance product, making sure that the product provides the coverage needed by growers at a reasonable premium without distorting the market or affecting a grower’s management decisions for the crop. New insurance products must have written policy, underwriting and loss procedures, as well as an actuarially-sound premium rate. The ability to innovate with new and expanded insurance offerings to reflect modern and changing farming practices is central to how the Federal Crop Insurance Program works. Read more »