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Risk Management

NY Farms! in an effort to assist producers manage agricultural risk has created this page. Links are provided to organizations, programs, articles and the latest news you can use. Please help us in keeping this page useful to you. If you know of a contact which should be listed here, please bring it to our attention. Thank you.


News You Can Use

RFD-TV will air Risk Management and Crop Insurance programs
AgriLogic, Inc. and Hot Shots Video Productions have put together a series of television programs discussing agricultural risk management and crop insurance products, for New York growers, with funding provided by the USDA - Risk Management Agency. Three different TV shows will be aired on Ag Lifestyles.

One show will focus on risk management and crop insurance products designed for traditional row crop growers, covering Actual Production History (APH), Crop Revenue Coverage (CRC), Indexed Income Protection (IIP), Group Risk Plan (GRP), and Group Risk Income Protection (GRIP).

A second show will focus on crop insurance products for specialty crops, such as Apples, Grapes, Oinions, Sweet Corn, and Greens, covering APH, Dollar Plan, Adjusted Gross Revenue (AGR), and AGR-Lite.

The third show will include additional risk management techniques such as hedging strategies, forward contracting and put options, and the importance of documentation.

On-site workshops will also be hosted throughout the state in Feb. and Mar

Show 1: Specialty Crop Producers
Jan. 23, 9:30 PM EST
Jan. 24, 5:30 AM, 1:30 PM
Jan. 28, 11:30 PM
Feb. 27, 9:30 PM
Feb. 28, 5:30 AM, 1:30 PM
Mar. 3, 11:30 PM

Show 2: Row Crop Producers
Feb. 13, 9:30 PM EST
Feb. 14, 5:30 AM, 1:30 PM
Feb. 18, 11:30 PM
Mar. 6, 9:30 PM
Mar. 7, 5:30 AM, 1:30 PM
Mar. 11, 11:30 PM

Show 3: Additional Risk Management Techniques
Mar. 27, 9:30 PM EST
Mar. 28, 5:30 AM, 1:30 PM
Apr. 1, 11:30 PM

Flood Updates

Three government agencies are currently offering financial assistance in which New York farmers could be eligible: the United States Department of Agriculture Farm Service Agency (USDA FSA), NYS Department of Labor (NYS DOL) and the Federal Emergency Management Agency (FEMA).
For the latest information on assistance available for farmers affected by flooding, visit www.agmkt.state.ny.us Related links include:
Governor’s Flood Relief Information
www.ny.gov/governor/flood/flood_relief.html
State Emergency Management Office www.semo.state.ny.us/
New York State Farm Service Agency http://www.fsa.usda.gov/ny/
New York Department of Labor http://www.labor.state.ny.us/index.htm
Federal Emergency Management Agency www.fema.gov/

Farm Service Agency (FSA)
For crop, livestock, or milk losses, farmers should contact their county USDA Farm Service Agency office.

It is very important to document/verify your losses (photos, paid bills, etc). If you plan to replant, note that there is 7/31 deadline for FSA notification of planted crops. There are a variety of programs (Emergency Loan Program, Emergency Conservation Program, and Non-insured Crop Disaster Program) that producers may be eligible for crop and production losses. Check back routinely with your FSA office to report new or additional damages and to learn of any new funding opportunities.

For a list of county FSA offices, visit: www.offices.sc.egov.usda.gov/locator

Emergency Loan Program provides emergency loans to help producers recover from production and physical losses due to drought, flooding, other natural disasters, or quarantine. http://www.fsa.usda.gov/pas/publications/facts/emer0802.pdf

Emergency Conservation Program (ECP) provides emergency funding for farmers and ranchers to rehabilitate farmland damaged by wind erosion, floods, hurricanes, and other natural disasters, and for carrying out emergency water conservation measures during periods of severe drought. http://www.fsa.usda.gov/pas/publications/facts/ecp00.pdf

Non-insured Crop Disaster Program (NAP) provides financial assistance to producers or non-insurable crops when a low yield, loss of inventory, or prevented planting occurs due to natural disasters. http://disaster.fsa.usda.gov/nap.htm

New York State Department of Labor

For immediate farm operation needs (not crop, livestock, or milk losses) and personal needs farmers should apply for assistance from the New York State Department of Labor State Individual & Family Grant Program.

State Individual & Family Grant Program (IFG) provides up to $5,000 in grants for documented flood losses not covered by insurance or other government programs to continue your farm operation, including equipment, fuel, feed losses, and other personal or business needs.

Individual farm families can apply separately for two grants and be eligible to receive both. They can apply a grant to help offset personal needs, and they can also apply for a grant to help address immediate business needs. IFG can also pay for deductibles on losses covered by insurance. Get forms by: visiting your local Disaster Assistance Service center, listed below; or call 1-888-7-NYS-AID (1-888-769-7243); or download the form at the DOL website: www.labor.state.ny.us/grant_info.shtm

Federal Emergency Management Agency

For losses or damage to a primary residence, farmers should contact the Federal Emergency Management Agency.

FEMA covers many types of losses and includes the Individuals and Households Program and the Other Needs Assistance Program. Assistance could include money for temporary housing or to repair damage, medical bills, household items, clean-up costs, damaged vehicles, and more. Call 1-800-621-FEMA (1-800-621-3362). Or visit their website: www.fema.gov/

Individuals and Households Program
When the President declares a disaster and authorizes providing Individual Assistance, FEMA's Individuals and Households Program (IHP) can help homeowners and renters affected by the disaster with housing needs and necessary expenses. www.fema.gov/media/fact_sheets/individual-assistance.shtm

Other Needs Assistance Program
Money is available for necessary expenses and serious needs caused by the disaster through the Other Needs Assistance Program (ONA). This includes medical, dental, funeral, personal property, transportation, moving and storage, and other expenses that are authorized by law. www.fema.gov/media/fact_sheets/individual-assistance.shtm

Information Regarding Flooded Crops
The Food and Drug Administration has information regarding crops for human consumption that were exposed to floodwater on their website: www.cfsan.fda.gov/~dms/fsdisas1.html

For information and advice on immature crops, grain crops and animal feed exposed to floodwaters, contact your county Cornell Cooperative Extension office.

RESOURCES FOR FARMERS AND OTHERS:
These sites provide additional technical information for farmers and others on such issues as cleanup, mold, safety precautions and assistance:

New York Farm Bureau:www.nyfb.org/FloodUpdate.htm
Tioga County Cooperative Extension: http://counties.cce.cornell.edu/tioga/farmflood.php
Steuben County Cooperative Extension: http://counties.cce.cornell.edu/Steuben/Currentissues.htm
Chenango County Cooperative Extension: http://cnydairylc.cce.cornell.edu/cropconditions/cropconditions.html
NYFarmNet:www.nyfarmnet.org/current.htm
NYS Department of Agriculture and Markets: www.agmket.state.ny.us

Sourcing Livestock Feed
Thanks to my friends in Texas for this listing. I'm sorry to report that while we are drowning with too much rain, they are drying up and blowing away. Many are looking for feed:

The Hay Barn
USDA, Farm Service Agency - Have Hay Page
Hay for Sale
Ag World
Hay Exchange THIS IS THE SITE RECOMMENDED BOTH IN TEXAS AND IN NY. If you don't have access to a computer to post we are encouraging a county point person to take this task on.

HELP AVAILABLE:

We have some landowners that have certifyable organic pastures that might be able to take a few animals out of the flood plain for the summer. I wonder if there might be a chance of anything happening. TROY FarmboyTB@aol.com.

HELP NEEDED:
Delaware County Farmers are in need of heavy equipment (bulldozers, backhoes, and excavators). If you are able to help out please contact Delaware County Cooperative Extension.

YOU CAN HELP:
NODPA will set up a fund to receive donations, either in-kind (hay, feed etc) or cash specifically to help organic dairy farmers (certified or transitioning) who have been badly affected by this years weather. Cash donations should be sent to me at the address below payable to NODPA but marked for weather relief (we can accept credit cards as well) and send a detailed description of any in-kind donation so we can connect you to farmers that need it. Ed Maltby (NODPA Executive Director), 30 Keets Rd., Deerfield, MA 01342 Tel 413-772-0444 Fax 866-554-9483 email:emaltby@comcast.net

Farm Bureau Foundation creates Feed & Forage Fund to Help Farmers Fund Will Help Cover Transport Costs for Hay and Other Feed in Flood Region. Donations to the fund can be made by calling the New York Farm Bureau Foundation at 1-800-342-4143 beginning Monday. Credit card donations will be accepted. One hundred percent of the money raised will go to farmers. No money will be used for administration. Donations are tax deductible, since the Farm Bureau Foundation is a 501c3 charitable organization. "Many farmers have had entire crop loss of hay and corn," Lincoln said. "Others have lost their existing feed supplies and are now scrambling to feed their livestock." Lincoln said that the need for help will exist for at least a year for farmers who lost entire crops and feed supplies. With the high costs of transportation, the Fund will be utilized to help offset the costs of trucking feed to the farmers who are most in need. Twenty New York counties have been declared disaster areas by the president and losses to agriculture are expected to exceed $40 million. For dairy farmers in the region, the impact is even more severe due to the recent plunge in farm-gate milk prices. Milk prices are at a 20-year low, down three dollars per hundredweight from last year. The weather problems also come as farmers struggle with historically high fuel prices. Farm Bureau said the weather problems, coupled with high energy prices and low commodity prices could mean disaster for New York agriculture and the rural economy. "There is little doubt that the future of our agriculture industry in many parts of New York is in jeopardy without immediate and significant federal help," Lincoln said.

River Valley or Floodplain Pastures: Several producers around central NY graze land that sits along local streams and rivers. Some have received significant floodwaters on their pastures due to the flooding we experienced in late June. In some areas, raw sewage, significant sediment or gravel, and other types of debris have ended up on these fields. By now, most people have clipped the forage off those pastures, where practical to do so. This is the right strategy, as the sediment that remains on the forage could cause animal health problems if grazed. If the amount of clipped forage is substantial, it should be removed from the pastures if at all possible to avoid having livestock eat it. New growth from those pastures should be relatively clean of sediment. In one case, a producer had clipped his pastures the day before the flooding. Subsequent rains had washed any remaining sediment closer to soil surface. His pastures showed all new growth and no sediment on the plants - he was able to graze his animals within 2 weeks of the floodwaters receding. Brought to you by the NYS Grazing Lands Conservation Initiative. For more information on GLCI, check out the national GLCI website at www.glci.org. Information on the NYS GLCI can be obtained from GLCI Coordinator Karen Hoffman Sullivan at the email address above or GLCI Chair Troy Bishopp at FarmboyTB@aol.com.

Links

Resources

New Nursery Crop Insurance Brochure Available. An extension brochure outlining the changes in the revised 2006 Nursery Crop Insurance Policy is now available. The brochure was prepared by our New Jersey and Pennsylvania colleagues in crop insurance education. To obtain a small supply of printed copies, contact Gene Gantz at gantz@pa.net or (717) 497-6398. Please specify the quantity and the name and address to which they should be shipped.

Small Farms Quarterly: Risk Management Series The Summer 2006 issue of the Small Farms Quarterly appears in the July 10 of Country Folks and can also be accessed online at www.smallfarms.cornell.edu. There are a wide range of articles to catch a wide range of interests. Articles on risk management, part of a continuing series developed under the NY Crop Insurance Education Program, include Reducing Risks On A Small Farm Start Up and Help with Health Insurance. For further information on the Small Farms Risk Management series of articles, call Craig Cramer at (607) 255-5428 or cdc25@cornell.edu.

AGR-Lite Website. The Farmers' Market Federation of New York has launched a new website dedicated to AGR-Lite. It provides a simple screening process by which producers can determine whether this innovative crop insurance policy is for them. It also includes a number of case studies, fact sheets, links, and contact information for those who wish to go deeper into the subject. It is possible by linking to the premium calculator on the website of the Risk Management Agency to determine with some degree of accuracy the purchase price of AGR-Lite in advance of consulting with a sales agent. The intention of the website is to provide a means for growers to be as informed as possible before meeting with a sales agent. Simply use the AGR-Lite button at www.nyfarmersmarket.com. For further information, contact Diane Eggert at (315) 475-0752 or diane99@dreamscape.com

Developing a Personalized Risk Management Plan. As part of the NY Crop Insurance Education Program, FarmNet/FarmLink consultants visit individual farms throughout the state to conduct an overall risk assessment. Using a thoughtfully designed check list, the consultant reviews with the farm family over 20 areas of risk from disability to record keeping, debt financing to cash flow, environmental liability to crop yield loss. By approaching risk management in this systematic way, chances are increased that significant gaps can be identified and appropriate defensive measures undertaken. Prioritization of risks is a natural consequence of this approach. Crop insurance may or may not be a high priority. In some cases, it may be far more urgent that the books be straightened out or that a farm transfer planning process be initiated, to name just two possibilities. At the end of FY 2005, FarmNet/FarmLink consultants will have worked with 50 farm families in developing their risk management plans. For further information, contact Steve Richards at (607) 255-9854 or str4@cornell.edu. Those interested in exploring other comprehensive approaches to risk management are urged to consult the following link http://www.firstpioneer.com/notebook/L3/RMA/index.htm.

Resources: AGR-Lite and General. The Cornell Department of Applied Economics & Management link is http://hortmgt.aem.cornell.edu/programs/riskmgt.html. There are a number of informative articles on AGR-Lite. AGR-Lite premiums can be determined directly using the calculator tool found at the RMA website under http://www3.rma.usda.gov/apps/premcalc. Scroll up to learn about the new AGR-Lite website maintained by the Farmers' Market Federation of New York at www.nyfarmersmarket.com.

Using Crop Insurance: Profiles of 13 Farmers Who Use Crop Insurance as a Risk Management Tool (September 2004) by Jim Ashton, Jeremy Forrett, Eleanor Jacobs, Jane McGonigal, Steve Richards and Cathy Sheils, and a companion workbook Do I Need Crop Insurance? Self Evaluating Crop Insurance as a Risk Management Tool in New York State (February 2004) by Steve Richards. Copies are free to New York growers and are available by calling NY FarmLink at 1-800-547-3276.

Program Partners

USDA RISK MANAGEMENT AGENCY

USDA Farm Service Agency

New York State Department of Agriculture and Markets

First Pioneer Farm Credit

FarmNet/FarmLink

New York Farm Bureau

Northeast Organic Farmers Association- (NOFA NY)

Cornell Univeristy: Agricultural Economics and Management

Cornell University: Small Farms Program

NYS Farmers Direct Marketing Association

NY Farms!

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