Risk Management for Christmas Tree Growers Custom Ag Solutions Brett Crosby OSU Tree School March...
-
Upload
stephanie-cummings -
Category
Documents
-
view
218 -
download
0
Transcript of Risk Management for Christmas Tree Growers Custom Ag Solutions Brett Crosby OSU Tree School March...
Risk Management for Christmas Tree Growers
Custom Ag Solutions
Brett Crosby
OSU Tree School
March 24, 2007
Custom Ag Solutions
• Based in Cowley, Wyoming
• Previous Experience
• Focus on Agricultural Finance– Risk Management– Feasibility– Valuation– Technology Applications
• USDA Agency• Created in 1996 to Administer the Federal
Crop Insurance Program• Three Divisions
– Insurance Services– Research & Development – Risk Compliance
• RMA Quick Facts– Over 500 Employees– Ten Regional Offices – Main Offices in Kansas City and Washington, DC
Risk Management Agency (RMA)
RMA’s Vision: To serve America’s agricultural producers through effective, market-based risk management solutions.
RMA’s Mission: Promote, support, and regulate sound risk management solutions to preserve and strengthen the economic stability of America’s agricultural producers.
Risk Management Agency (RMA)
RMA’s Approach:• Partner with Public and Private
Organizations to Develop New Risk Management Programs.
• Partner with Private Insurance Companies to Deliver Risk Management Products (e.g., crop insurance, LRP).
• Partner with Public and Private Organizations to Provide Risk Management Education.
Risk Management Agency (RMA)
RMA’s Risk Management Education– “Informed Customers and Stakeholders.”– 100 Separate Initiatives
• Targeted States
• Outreach Programs
• Commodity Partnerships
Risk Management Education(RME)
Management Decisions
• Resource Availability
• Site Selection• Site Preparation• Planting Stock• Planting Technique• Plantation Protection• Weed Management• Fertility Management
• Irrigation Options• Shaping/Shearing• Insect/Disease Control• Harvesting• Marketing• Starting Over
Risks Faced by Christmas Tree Growers
Every management decision affects a grower’s exposure to one or more of the following risk categories:
– Production Risk– Price Risk– Financial Risk– Legal Risk– Human Risk
Evaluating Your Decisions
The four “Knows” for each management decision:
1. Know the risks associated with each decision
2. Know the anticipated reward of each decision
3. Know the costs of each decision
4. Know the benefits of each decision
The Christmas Tree Risk Analysis Tool
• Model your current operation
• Use the model to evaluate:– Your ability to withstand a price drop – Your ability to meet your financial
obligations at various price levels– The costs and benefits of the practices
used to manage production, human, and legal risks
Contact Information
For Free Risk Management Information and Software Call:
866 847-4578 or Visit
www.ChristmasTreeRiskManagement.com