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Posts tagged: risk management

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 »

USDA Then and Now

For over a century and a half, USDA has worked alongside farmers, businesses, and community leaders to ensure USDA programs put forward the most innovative thinking to meet the changing needs of a modern agricultural landscape. Mission areas across USDA, from agricultural research to forest management to nutrition programs and more, also look forward to create a stronger rural America, better prepared to meet 21st century challenges.

To illustrate some of the major innovations in our recent history to continuously serve communities across the nation – and in honor of Throwback Thursday – we’ve collected several historic photos and paired them with their modern counterparts. This photo series features USDA programs and services, Then and Now, and shows the impact of creative and innovative investments for a brighter future for rural Americans.

Food Stamps to SNAP: Converting from paper coupons to Electronic Benefit Transfer has allowed USDA to increase access to fresh healthy food, including farmers markets, while reducing fraud, waste and abuse within the SNAP program.

A book of paper food stamps used in 1941

This electronic card reader using a wireless connection allows consumers to use the Supplemental Nutrition Assistance Program (SNAP) Electronic Benefits Transfer cards

 

Rural Infrastructure: Rural broadband creates educational, health and economic benefits for rural America, and provides access to new opportunities that may not have been available before.

Rural Electrification Administration workers erect telephone lines in rural areas.

Family Nurse Practitioner and patient using telemedicine equipment to meet virtually with doctors.

 

On the Farm Technology: Modern technology allows agriculture to be more productive than ever before, leading to the strongest 5 years of agriculture exports in our history. Modern tractors and farm equipment often utilize GPS for precision planting or harvesting, and are able to perform tasks like measuring moisture content and weight in real time, and can update yield per acres on the fly during harvest time.

Man planting corn with a team of horses in 1940

A tractor turns the cover crop into the soil in preparation for planting.

 

Conservation: Conservation and risk management practices have helped to bring us into a 21st century of land stewardship, promoting soil health and healthy land management that help to ensure that the dust bowl of the 1930′s is history. Making reliable, effective risk management tools available for producers to make sound decisions that benefit the land is just one way USDA helps farmers and ranchers help the land.

Dust blown by the wind from an Iowa field that was not planted to grass to prevent soil erosion in 1890.

View of farmland and mountain range.

These are the first of many Then and Now images we’ll share, but we’d love to hear from you. We know some of agriculture’s most compelling innovation stories are the ones seldom told. Use #AgInnovates to add your voice to our shared story and tell us how your family or community has evolved to meet the needs of the 21st century.

Organic Crop Insurance Is Growing in New Ways!

B & W Orchards owner Barbara Robinson grows blueberries and other produce on her eastern Mississippi farm. Photo by Mississippi State University Extension Service

B & W Orchards owner Barbara Robinson grows blueberries and other produce on her eastern Mississippi farm. Photo by Mississippi State University Extension Service

Federal crop insurance provides the risk management tools necessary for American farmers to stay in business after a difficult crop year. They can be the difference between a farmer going under because of a lean year or having a safety net that allows them to keep farming and rebuild.  These tools help farmers who rely on good farming practices for smart land use and preserve economic stability for generations.  And the Risk Management Agency (RMA) has worked hard to extend risk management tools for organic producers.

Organic producers were first able to obtain crop insurance under the Agricultural Risk Protection Act of 2000. However, due to the lack of data, organic farmers were initially charged an additional 5 percent surcharge and were only able to insure the “conventional price” for their crop – not the organic price.  Many organic producers felt the surcharge was not justified and that crop insurance prices needed to better reflect what they received in the marketplace. Read more »

Risk Management Tools Help Farmers Create a More Environmentally Sustainable Future

Good risk management tools aid in conservation efforts and help protect beautiful views like this for the next generation. USDA photo.

Good risk management tools aid in conservation efforts and help protect beautiful views like this for the next generation. USDA photo.

American producers know that crop insurance is a proven tool for managing the risks of farming.  But many folks may not be aware that it also promotes sound practices that encourage environmental sustainability.

One of the primary reasons the Federal crop insurance program is good for conservation is that it requires producers to exercise good farming practices in order to be eligible for coverage.  Good farming practices vary from crop to crop and from region to region, but follow the principle that the farming practices carried out are considered prudent and responsible by local extension agents and certified crop consultants. And this means planning for the long-term future, not just the current crop year. Read more »

Preview of Food Price Outlook and Farm Income Sessions at 2013 Agricultural Outlook Forum

USDA’s 2013 Agricultural Outlook Forum, Feb. 21-22, in Arlington, Va., will host a morning of plenary session speakers on the opening day followed by 25 breakout sessions.  The “Food Price Outlook” breakout session for 2013 will offer perspectives on food price inflation, the factors contributing to food prices, and the consumer implications.

In this session, Dr. Todd Davis, Senior Economist for the American Farm Bureau Federation, will discuss the link between this past year’s harvest and the prices consumers pay for food. Joining him will be USDA economist Richard Volpe explaining the relationship between food prices and inflation.  Kurt Collins, Senior Director of Commodity Risk Management for Unified Foodservice Purchasing Co-op, will explore strategies the food industry is using to manage commodity price risks. The “Farm Income” session will focus on general measures of the financial well-being of the farm economy and farm households.

To learn more about the Forum, please visit our website.