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Extension risk management education: new resources available
Author: Arkansas Row Crops

By Archie Flanders, Agricultural Economist

Another year of low crop prices is projected to have 2016 revenue less than sufficient to cover production costs. The current financial situation calls for producers to consider all aspects of risk management as profit margins are decreased from normal levels. Input costs for fertilizer and fuel have declined slightly from 2015 levels. Prices for seeds and chemicals will likely have pressure for downward flexibility as low crop prices impact all sectors of the agricultural economy. Seed, fertilizer, chemical, and other decisions for the farm could be thoroughly analyzed with crop enterprise budgets. Planning should evaluate alternative production practices and consider that some inputs having uncertain potential for yield improvement may not be justified with current crop prices. Crop insurance with provisions for prevented planting and replanting represent additional expense, but low crop prices have increased the vulnerability of farms to the financial effects of adverse weather. In response to increased uncertainty in the agricultural economy, the Cooperative Extension Service has expanded information for risk management. Risk management information is available at


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