Survey Shows Farmers, Ranchers Turning to Risk Management
More than half U.S. farmers employing risk management strategies.
Compiled by staff
Published: Apr 6, 2009
According to the Rabobank Farm & Ranch Survey, which was recently launched to gauge farmer's confidence, more than half of U.S. farmers have recently implemented or plan on investing in risk management or marketing strategies. Among those, pre-selling crops/livestock is the most regularly used risk management approach, followed by hedging future commodity sales and lock-in margins.
"Our survey demonstrates that U.S. farmers and ranchers are tackling the current economic environment head on by making smart choices to help them weather the storm,•bCrLf said John Ryan, president and CEO for Rabo AgriFinance. "While many are hurting because of the economy, there is some optimism that the situation will improve next year.•bCrLf
Ryan says the fact that farmers are taking steps to minimize risk, which should ease concerns about the future. However, deployment of risk management strategies varies based on the degree of concern about the U.S. agricultural economy. While 45% of farmers who are concerned about the agricultural economy use at least one risk management strategy, the percentage employing risk management solutions increases substantially in those who are not concerned.
In addition to risk management tactics, the Rabobank Farm & Ranch Survey looks at business conditions, economy concerns and expansion plans among U.S. farmers, ranchers and agricultural producers.
Regional information and further data is also available at www.RabobankAmerica.com/Survey.
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