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 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.