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University of Maryland Extension
Risk Management Programming on the
Eastern Shore of Maryland:
Identifying needs and using a team
approach.
University of Maryland Extension
Jenny Rhodes –Queen Anne’s Co.Shannon Dill – Talbot County
John Hall – Kent CountySudeep Mathew – Dorchester Co.
Extension Educators, Agriculture & Natural Resources
Wes Musser, College Park Professor & Extension Specialist,
Farm Management
TEAM
University of Maryland Extension
Jenny RhodesShannon Dill
John HallExtension Educators,
Agriculture & Natural Resources
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
University of Maryland Extension
•Crop Budgeting•Communication•Leasing•Crop Insurance•Grain Marketing•Excel for Farmers•RightRisk
University of Maryland Extension
Jenny RhodesShannon Dill
John HallSudeep Mathew
Extension Educators, Agriculture & Natural Resources
Wes Musser, Professor & Extension Specialist, Farm Management,
Surviving the Risk: A look at lease
agreements, budgets, marketing and more!
University of Maryland Extension
MaterialsAn 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
Outline – Crop Budgets
• 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
University of Maryland Extension
Landlord-TenantRelationships
Outline - Tenant-Landlord Communication
University of Maryland Extension
• Types and forms of Communication
• Communication Problems
• Public Relations Strategy
• Guidelines for Tenants
• Guidelines for Landlords
• Resume
• Newsletter
Guidelines for Tenants
University of Maryland Extension
“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 Today• Purpose of Crop Insurance• Level of Premiums
Compared with Indemnities• Types of Coverage• Losses• Important Deadlines
Crop Insurance Outline
University of Maryland Extension
•Premium Subsidies•Farmer Loss Ratios•New Programs
•ACRE•SURE
•Requirements•What should you know…
Crop Insurance Outline
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
www.rightrisk.org
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
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
•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.
Results – Landowners/Farmers
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.
University of Maryland Extension
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
[email protected]@umd.edu
[email protected]@umd.edu
