Developing Personal Risk Management Plans
for Limited Resource and Socially Disadvantaged Producers
in South Carolina Strike Force Counties
Laurence M. Crane
National Crop Insurance Services
Albert Essel
Delaware State University
Edoe Agbodjan
South Carolina State University
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Project Overview
• Funding for this project was provided to National Crop
Insurance Services (NCIS) through a competitively awarded
Southern Risk Management Education Center (SRMEC) grant.
• NCIS is a not-for-profit national trade association located in
Overland Park Kansas, and is the primary service organization
for the crop insurance industry.
• We (crop insurance industry) take seriously the responsibility
we have as the delivery system for the Federal crop insurance
program.
• Recognize the value of working with others/educators in
providing objective educational information.
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Underlying Educational Philosophy
A concentrated and hands-on approach to education typically
leads to long-term behavioral change, and is consistent with
the philosophy that behavior changes are more likely with
sustained personal support.
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Project Overview - Objectives
• The goal of this project was to assist Limited
Resource Farmers and Ranchers in South Carolina
StrikeForce Counties respond to risk in the five
special emphasis areas of production, marketing,
financial, legal, and human resource management.
• An applied education program consisting of
workshops and individualized counseling was
developed and conducted via a partnership of
trainers, state host coordinator (SHC) and local
educators (LE).
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Project Overview - Objectives
• Specific project objectives were to use a business planning
approach to:
(1) Review risk management principles, practices, and tools to
familiarize producers with how they can be effectively
applied in a holistic approach to their farm situation,
(2) Assist producers in conducting an effective risk assessment of
their own farm business,
(3) Inform producers of alternative risk management strategies,
(4) Assist producers with formation and adoption of their own
individualized risk response strategy, and,
(5) Review the financial implications and legal considerations of
their chosen strategy.
• These objectives were met through instruction, discussion,
interactive group activities, and personal homework assignments.
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Project Process - Structure
Planning
• Formed project Steering Committee
• Project Director—Laurence Crane
• Project Co-Director—Albert Essel
• South Carolina State Host Coordinator—Edoe Agbodjan
• Held face-to-face project Planning Meeting with
follow-up conference calls
• Worked out project logistics
• Workshop locations, dates, promotion, etc.
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Identified personnel (Local Extension Educators)
Needs assessment discussion—established priorities
Determined workshop content, structure, and outcomes
Established deadlines, responsibilities, expectations
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Workshop Overview - Structure
Workshops
• There were three structured workshops
• One month apart (approximately)
• Six hours each (9:00-4:00)
• Consisted of instruction, case demonstration, group
discussion, interaction, and networking
• Same farmers came to all three workshops
Individualized Study
• Homework assignments following each workshop
• Take approximately 20 hours to complete (60 total)
• Assisted/supported by Local Educators (LE)
• Selected area(s) where you wish to focus
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Workshop Overview - Outcomes
1. Be introduced to the farm business planning process and
learn how to:
• Identify and list all of their farms assets and their
productive capacity
• Determine the current wellbeing of the farm business
• Review the feasibility of alternative enterprises
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Workshop Overview - Outcomes
2. Be introduced to five areas of risk and learn how to
identify, measure, and mange risks on their farms in these
areas:
• Production risks
• Marketing risks
• Financial risks
• Human resource risks
• Legal risks
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Workshop Overview - Outcomes
3. Understand financial management of the farm and how
to use financial statements and budgets to assess the
performance of the farm business, and make better
decisions.
• Income Statements
• Balance Sheets
• Enterprise budgets
• Cash flow budgets
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Workshop Overview - Outcomes
4. Develop a personal risk management plan for your farm.
• Develop goals in each of the five risk areas
• Identify specific actions you will take to reach each goal
• Commit to follow through and implement the actions
identified
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Workshop Overview - Outcomes
5. Network with other producers in your area and learn
from them as you discuss current issues of mutual
importance.
• Share best management practices
• Develop network of peers
• Identify allied professionals who can support your
risk management activities
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Project Results - Summary
The primary outcome of this educational effort was for
participants to possess the skills and to understand their
own operations well enough to develop personalized risk
management strategies for each of the five emphasis
areas (production, financial, marketing, legal, human).
On the written evaluation form they reported spending
an average of 21.7 hours per session for a total of 65.02
hours of personal homework. Moreover, each of the 53
participants established a goal in each of the five risk
emphasis areas and delineated three specific actions they
would take during the next year to reach each goal.
43 participants completed all of the actions in their plans
10 participants have planned actions yet to complete
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Project Results - Summary
A secondary outcome of this project was to develop
and foster a long-term working relationship between
the farmer participants and the local educators
(Extension Associates).
Moreover, this educational approach also improves
the skills of these educators. The personal
interaction of these farmers with the local Extension
Associates as designed in this project has the
potential of creating long-lasting relationships that
will be mutually beneficial.
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Project Results - Summary
One very important indicator of success was the
strong participation by the participants who
returned each time and actively participated in each
of the three workshops.
At the conclusion of the last workshop several
farmers commented orally and on the written
evaluation form that they were grateful for the
opportunity to participate, had learned more than
expected, and wished the series could continue on a
regular basis.
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Farmer and Rancher Testimonials
“My wife and I found the Risk Management Project very beneficial in a
number of ways. It caused us to view our farm as a business and not just a
hobby. It forced us to improve our record keeping, and to inventory the
resources on our farm. We discovered that we have a lot of equipment not
being fully utilized. Also, being a certified organic farmer, this risk
management project has helped us to stay on point with everything that
we put in the ground making it easier for us to file for our recertification.
This project also made sure that we kept up with our insurance. This has
proven to be very important.”
John and Mary Culbreath, Organic Farmers form Williamsburg County
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Farmer and Rancher Testimonials
“This workshop was very beneficial to me. I learned many
recordkeeping techniques and procedures to help my farm run
properly and efficiently. Learning about all of the risk areas has been
very informative and helpful. This workshop actually helped us resolve
a very necessary legal risk in that we had our wills written up since
attending the workshop.” Mark and Tammie Jackson, Vegetable
Farmers from Orangeburg County
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Farmer and Rancher Success Story
“The Risk Management class has helped us to become more aware of
the need to establish a local market, and provided us the skills to do so. We
had been selling locally, mostly to friends and relatives. As part of a class
assignment, we began to look into more stable markets. Now we have
widened our sales to Daycare Centers and Churches, which are more
reliable and constant markets. We would have never thought of these
markets without the help of the risk management class. We came up with
these ideas through brainstorming with our group, and completing the
homework assignments. We have become more aware of what we have to
do to reach our goals for the farm.”
Malzo Heyward, Vegetable farmer from Hampton County
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Involved Local Extension Educators
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Traditional classroom instruction was
an important part of each workshop
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Formed small groups by commodities
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Small groups learned from each other,
and developed networking opportunities
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Workshop leaders monitored individual
discussions and helped maintain focus
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Participants challenged, yet strengthened
each other during their discussions
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Provided one-on-one instruction and
assisted the small group discussions
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Required writing and individual work
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Extension Educators followed up with
the farmers they recruited to participate
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Recognized their accomplishment by
providing Graduation Certificates
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Keys to Success
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Formed and worked with Steering Committee
Involved local Extension Educators
Conducted needs assessment of producers
Tailored workshop content to local needs/interest
Participant involvement; discussion; writing
Followed up on an individual basis to provide
encouragement and assistance
• Required active participation by attendees
• Required accountability at each phase of project
• Recognized participant accomplishments
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Project Challenges/Improvements
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Meeting current needs at individual level
The good and bad of homogeneity
Motivating personal action—writing is critical
More involvement of local allied professionals
(lenders, insurance agents, estate planners, etc.)
• Maintaining focus
• Continue the relationship after the funding has
ended
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Project Challenges/Improvements
Comments
Questions
Discussion
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