9:00 a.m. Introduction
Forward Contracts, Options, and Futures
Dr. Dan O’Brien
Discuss price risk management tools available to producers.
SURE and ACRE Programs
Dr. Art Barnaby
Risk-Assessed Marketing (RAM)
Combines Marketing Tools, Commodity Program Payments, and Crop
Dr. Art Barnaby
Explanation of case farm exercise. Review of the case farm’s
financial situation, government program participation decisions,
and its costs of production.
Workshop participants will evaluate and choose an insurance plan
for the case farm.
SURE & ACRE
Participants will be evaluate make a decision regarding
participation in the ACRE program, taking into account the costs
and trade-offs involved with that decision.
2:00 p.m. Evaluate
Risk Management Strategies
Participants will be walked through the four pre-harvest
marketing scenarios that are assumed to start at planting time.
Participants will evaluate risk/return trade-offs of their
marketing strategy. With minimal guidance, workshop participants
will make marketing decisions , which are assumed to take place
on selected dates. All grain not pre-harvest sold will be sold
Completion of Case Farm Exercise
At harvest, participants will randomly draw a yield to simulate
yield risk. All market revenue and production expenses will be
calculated. Production expenses will include premiums for put
options and insurance contracts selected by the participant.
Revenues will also include indemnity payments and any marketing
gain/losses from futures or forward contracts. Those having the
highest net farm income for each of the four pre-determined
yield categories will be recognized.
Summary and Adjourn