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