Risk Management
Programming on the
Eastern Shore of
Maryland:
Identifying needs and
using a team
approach.
University of Maryland Extension
TEAM
Jenny Rhodes –Queen Anne’s Co.
Shannon Dill – Talbot County
John Hall – Kent County
Sudeep Mathew – Dorchester Co.
Extension Educators,
Agriculture & Natural Resources
Wes Musser, College Park
Professor & Extension Specialist,
Farm Management
University of Maryland Extension
Jenny Rhodes
Shannon Dill
John Hall
Extension Educators,
Agriculture & Natural Resources
University of Maryland Extension
Why?
•Grain prices received by U.S. farmers doubled and tripled in 2007
•Unfortunately, Delmarva farmers did not prosper in 2007 due to a
widespread drought and reduced yields.
•The effect of increased grain prices created a wave of increased costs to
our farmers.
• Crop inputs have sky rocketed with equipment, fertilizer, seed and fuel
prices doubling and tripling.
• Landowners heard of this new prosperity and they also wanted a part in
the “profits
•As a result, land rental rate increases are being proposed and disputes
between landlord and farmer are increasing.
•Grain prices have since decreased due to the downturn in the stock
market causing many farmers to reevaluate their budgets, rental
agreements, and marketing plans
Why?
• Survey 2006
– Queen Anne’s County Farmers
• Average acres owned – 302.43
• Average acres rented - 491.46
– 62% Rented
• Results from Surveys
Who?
Target audience:
Bankers, Farm Loan Specialists,
Farm Service Agency staff,
Farmers and Landowners
When?
December 2008
Taught Bankers and Farm Loan Specialists
Send their Clients and Customers
January – February 2009 & 2010
Held series of workshops to teach farmers
and landowners
•Crop Budgeting
•Communication
•Leasing
•Crop Insurance
•Grain Marketing
•Excel for Farmers
•RightRisk
University of Maryland Extension
Surviving the Risk:
A look at lease
agreements, budgets,
marketing and more!
Jenny Rhodes
Shannon Dill
John Hall
Sudeep Mathew
Extension Educators,
Agriculture & Natural Resources
Wes Musser,
Professor & Extension Specialist, Farm Management,
University of Maryland Extension
Materials
An informational workbook was put together as a
resource for the attendees. The workbook included
all presentations along with a new custom rate chart,
soil types productivity table, examples of a farmer
newsletter and résumé, copies of sample lease
agreements, list of resourceful websites and a
section on leasing your farm for hunting. All
information was also posted on the Maryland Grain
Marketing website, so information could also be
downloaded for easier use.
University of Maryland Extension
Crop Budgets
University of Maryland Extension
Outline – Crop Budgets
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What is a budget?
5 Parts of a Budget
Budget Suggestions
Cost Components
Custom Rates
Demo how online budgets work
Crop Budgeting
www.mdgrainmarketing.umd.edu
Landlord-Tenant
Relationships
University of Maryland Extension
Outline - Tenant-Landlord
Communication
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Types and forms of Communication
Communication Problems
Public Relations Strategy
Guidelines for Tenants
Guidelines for Landlords
Resume
Newsletter
University of Maryland Extension
University of Maryland Extension
Guidelines for Tenants
“Keeping the Landlord Happy”
no different from an
“Effective Public-Relations Strategy in any
Business”
University of Maryland Extension
Leases
University of Maryland Extension
Outline Lease Agreements
•Lease Components
•Types of Leases
•Calculating Land Rental Rates
•Soil Productivity
•Hunting
•Machinery Costs
•Calculating Land Rental Rates
•Demo of Flexible Lease Agreement Worksheet
University of Maryland Extension
Crop Insurance
University of Maryland Extension
Crop Insurance Outline
• Crop Insurance Today
• Purpose of Crop Insurance
• Level of Premiums
Compared with Indemnities
• Types of Coverage
• Losses
• Important Deadlines
University of Maryland Extension
Crop Insurance Outline
•Premium Subsidies
•Farmer Loss Ratios
•New Programs
•ACRE
•SURE
•Requirements
•What should you know…
University of Maryland Extension
Grain Marketing
University of Maryland Extension
Grain Marketing
•Clubs
•Meet Monthly
•Meet Bi-monthly
•Winning the Game
•Women In Ag
•Winter Meetings
•RightRisk
University of Maryland Extension
Excel for
Farm
Businesses
University of Maryland Extension
Excel for Farm
Businesses
•Basics of Excel
•Receive Memory Stick
•Farm Excel Spreadsheet
•Cost Recovery
•Held
•Local Community Colleges
•Extension Offices
University of Maryland Extension
RightRisk
University of Maryland Extension
RightRisk
•Ag Survivor
• Represents farming practices
in region
•Chesapeake Maryland Farm
•Risk Management decision
•Crops
•Budgets
•Marketing
•Crop Insurance
University of Maryland Extension
Terrapin Couples
Retreat:
On the court and in
the classroom
University of Maryland Extension
Terrapin Couples
Retreat
•Friday Evening
•Girls Basketball Game
•Dinner
•Saturday
•Choice of classes
•Grain Marketing (WTG)
•Surviving the Risk
•Quickbooks/Excel
•RightRisk
University of Maryland Extension
Results – Bankers/Loan Specialists
•75% will use Crop Budgets with their clientele
•100% will use Custom Rates
•100% will pass on information on Lease options
•33% will help clientele with decision on new
Farm Bill ex. ACRE & SURE
•50% will help clientele make decision on Crop
Insurance
•50% will use Grain Marketing information
Results – Landowners/Farmers
•75% of the attendees rated the program
excellent
•81% indicated they would use crop budgets
with their farming operations
•77% would change their communication
with the landlord
•56% percent would change their type of
leasing agreement
•92% percent would use the workbook.
Results – Landowners/Farmers
•90% of the attendees indicated the issue
of risk management in today’s
agriculture operations is very critical
•55% indicated they would change their risk
management strategies
•87% used the internet for their farm
operation
•33% percent were likely to use RightRisk
on the internet.
•
University of Maryland Extension
Other Outcomes
•Farmers wrote a Résumé
•Increased awareness of Grain
Marketing Website
•Grain Marketing Clubs- new tools
•RightRisk – MidAtlantic Farm Credit
training exercise for loan personnel
•Excel –attendees would use for farm
operations
•This regional Extension program addresses
timely topics affecting the profitability our
family farms.
•Next Step: Applied for a grant to cover a
larger region in Maryland. We would like to
target young farmers next year. More
Quickbooks training.
•We would be happy to share our program
with you.
Resources
• Materials from this meeting
– http://www.extension.iastate.edu/feci/Leasing/vflm.html
• Online Courses –Ag Management e-School
– http://www.extension.iastate.edu/ames
• Workshops, meetings, conferences
– http://dbs.extension.iastate.edu/calendar/
• Publications –rental survey, land value survey, etc.
– http://www.extension.iastate.edu/pubs/
• Articles and spreadsheets
– http://www.extension.iastate.edu/agdm/
• Private Consultation
– http://www.extension.iastate.edu/ag/fsfm/fsfarmmg.html
- www.rightrisk.org
University of Maryland Extension
Contact Information
jrhodes@umd.edu
sdill@umd.edu
jehall@umd.edu
smathew@umd.edu
wmusser@arec.umd.edu
University of Maryland Extension