cover of Risk Management Practices on U.S. Farms and Ranches, 1996–2020 with drawing of farmer looking at field from the backUSDA

USDA Reports on Agricultural Risk Management Strategies

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USDA Economic Research Service released Risk Management Practices on U.S. Farms and Ranches, 1996–2020, a report on utilization of risk management strategies, using data from the Agricultural Resource Management Survey. The report classifies risk management strategies into four categories: (1) onfarm strategies, such as income and production diversification, and storage; (2) market based tools, including Federal Crop Insurance, marketing and production contracts; (3) other Government programs for managing risk, including countercyclical-type programs and disaster programs; and (4) strategies to manage longer term strategic risk, including investments in farm improvements and succession planning. The results showed that the type of strategy used varied by farm size and specialization. However, results indicate that, across the board, holding savings, engaging in off-farm employment, and purchasing insurance other than Federal Crop Insurance (such as private single-peril policies, liability insurance, or property insurance) are the most frequently used strategies.

Related ATTRA topic area: Risk Management