Farm Finance: Holistic Risk Management [Video]
This panel was originally presented live at Farmer2FarmerVI in Omaha, NE. Sign up to be first in line for Farmer2FarmerVII by clicking here.
In this educational presentation from Farmer2FarmerVI, FBN® team members walk viewers through core risks of crop marketing, the positive impact of early planning, how to optimize annual insurance decisions, and how to take a systematic approach to their crop marketing efforts.
Cody Bills: Director, U.S. Market Advisory & Brokerage at FBN
TJ Wilson: Director, Finance Sales at FBN
Eric Sorensen: Director, FBN Crop Insurance
Josh McClure: Senior Risk Management Advisor, FBN
Top Financial Considerations
Plan for 2023 Crop Year
Create a budget/breakeven analysis
Renew Operating Lines
Right size your line of credit
Look at rates and terms
Fixed vs. variable
Revolving vs. not
Lock in early
Take possession if you can
Capital and Risk Management
Review your working capital position; cash is king
Know your working capital needs for the remainder of the year and into spring
Know your cost of production
Evaluate risk management
Determine how you will protect your investment
Crop Insurance Considerations
How many opportunities do you have to make a decision on crop insurance each year?
How do you make that decision?
Are you focusing on farm profitability vs. cost?
Are you utilizing crop insurance as a marketing tool?
Choose the Right Tools
Futures & Options
Fixed Price Contract
Futures First Contract
Watch More Farmer2FarmerVI ‘Farm Finance University’ Sessions
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We are an Equal Opportunity Provider. The purpose of the following material is to promote awareness of risk management concepts and to highlight risk management products, features, benefits and availability. This presentation does not provide full details of policy provisions or approved procedures. Producers should consult with a local agent for specific details and program requirements.
FBN Insurance services are offered by FBN Insurance LLC (dba FBN Insurance Solutions Services LLC in Texas, and FBN Insurance Solutions LLC in California and Michigan). FBN membership is not required to purchase through FBN Insurance LLC, but certain features may only be available to FBN members. FBN Crop Insurance is currently offered in all U.S. states.