Crop Insurance Today August 2012 - (Page 4)

TODAYcrop insurance Risk Management Plans ers of specialty crops and underserved commodities in Arkansas and Mississippi in responding to risk in the five special emphasis areas of production (crop and livestock insurance), marketing (strategies and farmers markets), financial (farm management strategies), legal (liabilities and estate planning), and human resource (labor) management. Individualized risk management responses were formulated using the business planning approach. An applied education program consisting of six workshops and individualized counseling was developed and conducted via a partnership of two trainers, two state host coordinators (SHC) and twelve local educators (Extension Associates). Specific project objectives were to use business planning to: 1) review risk management principles, practices, and tools to familiarize producers with how they can be effectively applied in a holistic approach to their farm situation; 2) assist producers in conducting an effective risk assessment of their own farm business; 3) inform producers of alternative risk management strategies, including crop and livestock insurance, and delineate financial and marketing opportunities for alternative case scenarios; 4) assist producers with formation and adoption of their own individualized risk response strategy; and, 5) review the financial implications and legal considerations of their chosen strategy. The primary outcome of this educational effort was for participants to develop the skills and to understand their own operations well enough to develop personal risk management strategies for each of the five risk emphasis areas specified above. The extended duration and iterative nature of the program, with sequential workshops and personal follow-up, provided participants with an opportunity to both develop and revise plans with their own data and have it professionally reviewed. This concentrated and hands-on approach to education typically leads to long-term behavioral change and is consistent with the philosophy that behavior changes are more likely with sustained personal support. Developing By Dr. Laurence Crane, NCIS This article summarizes the activities of an RMA funded Competitive Cooperative Partnership Agreement awarded to NCIS as part of the Risk Management Education and Outreach Partnerships Program. NCIS presented educational workshops this spring and summer in cooperation with the University of Arkansas–Pine Bluff, and Alcorn State University in Mississippi. The objective of these workshops was to help African-American farmers and ranchers in Arkansas and Mississippi develop risk management plans for their farms. This training consisted of a series of three sequential workshops in each state and sixty hours of individualized instruction and homework assignments. Risk management planning continues to be a timely topic as farmers face historically high input and energy costs, fewer off-farm employment opportunities, and increased financial and marketing risks. Priority and Emphasis This activity focused on producers of specialty crops where there is no insurance coverage, and producers of underserved commodities that are covered by crop insurance but have a participation rate lower than the national average. Many of these producers have limited historical knowledge and/or personal experience with insurance programs. It is imperative that they receive the tools necessary to benefit from the use of crop insurance where available and learn Project Overview Risk management planning continues to be a timely topic as farmers face historically high input and energy costs, fewer off-farm employment opportunities, and increased financial and marketing risks. The goal of this project was to assist limited resource and African-American produc4 AUGUST 2012

Table of Contents for the Digital Edition of Crop Insurance Today August 2012

“What is, and What Should Never Be....”
Developing Risk Management Plans
Crop Insurance Rate of Return: Issues & Concerns
2011 Research Review
RMA/AIP Data Mining Steering Committee
NCIS Adjuster Training in Full Swing
Industry Support of FFA
Crop Insurance & Specialty Crops

Crop Insurance Today August 2012