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Tag: risk management

Forage Risk Management and PRF Insurance

Posted on by Sandy Johnson

Jenny Ifft, Agricultural Policy Extension Specialist

Pasture, Rangeland, and Forage (PRF) insurance is a tool for managing rainfall or drought risk. While individual producer experience varies, PRF has made substantial payouts during drought years. In 2023, producers paid an average premium of $5.11 per acre and received an average payout of $10.06 per acre. The deadline to sign up for PRF insurance for the 2025 calendar year with a crop insurance agent is December 1, 2024. Some producers may be concerned about the degree to which PRF will cover actual forage losses on their operation. This article summarizes these concerns and two approaches to considering them.   Continue reading “Forage Risk Management and PRF Insurance” →

Managing Drought Risk with Annual Forage Insurance

Posted on by Sandy Johnson

Jenny Ifft, Agricultural Policy Extension Specialist

Nearly all of Kansas is currently experiencing abnormally dry or moderate drought conditions. For producers who grow annual crops for the purpose of feeding cattle or other livestock, Annual Forage Insurance (AFI) is a tool to manage drought risk.  Continue reading “Managing Drought Risk with Annual Forage Insurance” →

Managing Feeder Cattle Price Risk

Posted on by Sandy Johnson

 By Jennifer Ifft, agricultural policy extension specialist, Flinchbaugh Agricultural Policy Chair

For producers that will have calves to sell in fall 2024 or early 2025, futures prices have rallied to around nearly $265-270/cwt. However, weather, global conflict, or other factors could negatively impact the 2024 market. Prices were relatively high throughout 2014 in response to a drought-induced decline in cow numbers, but during the fall of 2015 prices declined rapidly. While market fundamentals may currently be stronger in 2024 than 2015, markets remain volatile and high prices have never lasted forever.   Continue reading “Managing Feeder Cattle Price Risk” →

Livestock Risk Protection – What is price insurance worth?

Posted on by Sandy Johnson

By Jennifer Ifft, agricultural policy extension specialist and Sandy Johnson, Extension Beef Specialist, Colby

Livestock Risk Protection (LRP) is price insurance that pays out when market prices for feeder cattle (or fed cattle) are lower than expected. For example, if a producer calves in March and sells weaned calves around September, they can purchase LRP in March and “lock in” September futures prices. If by September, actual prices are lower than expected, they may receive a payment, or indemnity.   Continue reading “Livestock Risk Protection – What is price insurance worth?” →

Cow-calf producers have options for managing price risk

Posted on by Sandy Johnson

By Jennifer Ifft, agricultural policy extension specialist

Farmers and ranchers face risk every day. Individual producers have many tools to mitigate risk, such as vaccination or irrigation, but never have complete control over production outcomes. Price risk is one example of the many types of risk that can influence farm income. Continue reading “Cow-calf producers have options for managing price risk” →

Updates for Livestock Risk Protection, a price insurance tool for feeder cattle

Posted on by Sandy Johnson

by Monte Vandeveer, extension agricultural economist, Garden City

One price risk management tool available to feeder cattle producers (and other types of livestock producers) is Livestock Risk Protection, or LRP.  The LRP program from USDA’s Risk Management Agency (RMA) is a price insurance program where insurance policies are sold through local insurance agencies but still backed up by RMA, just like traditional crop insurance.  Also like multi-peril crop insurance, LRP premiums receive a subsidy through RMA. Continue reading “Updates for Livestock Risk Protection, a price insurance tool for feeder cattle” →