Overview

Uncertainty about prices, yields, government policies, and foreign markets means that risk management plays an important role in many farm business decisions.

Government programs have been reoriented towards addressing farm risk management in recent years. The largest of those programs, the federal crop insurance program, provided an average of just over $3 billion in premium subsidies to producers annually between 2010—2020.

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.

The Stocking Impact and Financial-Climate Risk of the Livestock Forage Disaster Program Federal Programs for Agricultural Risk Management U.S. Agricultural Policy Review, 2022 COVID-19 Working Paper: Unpriced Commodity Inventory and COVID-19 Pandemic Assistance Puerto Rico’s Agricultural Economy in the Aftermath of Hurricanes Irma and Maria: A Brief Overview

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With Expanded Options, Organic Producers of Specialty Crops Increase Use of Federal Risk Management Products Use of Federal Risk Management Programs Varies Widely by Specialty Crop USDA’s Corn Output Projections Inform Futures Price Movements A Look At USDA, Economic Research Service’s Commodity Costs and Returns Data Corn and Soybean Farmers Combine Futures, Options, and Marketing Contracts To Manage Financial Risks

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Commodity Costs and Returns Season-Average Price Forecasts

Farm Economy Farm Practices & Management Farm & Commodity Policy