Uncertainty about prices, yields, Government policies, and foreign markets means that risk management plays an important role in many farm business decisions.
Government programs addressing farm risk management have played a larger role in U.S. farm policy in recent years; in crop year 2013, producers enrolled more than 295 million acres in the Federal crop insurance program, and Government insurance subsidies exceeded $7 billion.
ERS 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, and
- Off-farm employment.