Completed Project Report


Organizing the Risk Management Toolbox: A Guide to Marketing, Insurance, and Government Programs

  • Award Amount: $41,759
  • Regional Center: North Central Extension Risk Management Education Center
  • Grant Program: 2005 Entrepreneurial Grants
  • Project Director:
  • Email: dmark2@unl.edu
  • Organization: UNL Agricultural Economics

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Project Overview

Many agricultural producers are familiar with marketing concepts and hedging instruments in the cash and futures markets. Additionally, many routinely purchase crop insurance and participate in government programs. While producers tend to understand and use these tools independently, they may not fully capture the synergies of their combined use or apply them as risk management tools. Further, selecting the right marketing tool for expected market conditions is often difficult for many producers.

This project addressed the marketing, financial, and human risks associated with crop and livestock production enterprises. It provided instruction on the combined use of hedging, crop and livestock insurance, and government programs using DVD distance delivery formats and text materials on CD-ROM to 124 crop and livestock producers (to date). Participants could organize their marketing toolbox by completing a marketing checklist and using a tool selector that specified problems, defined goals, identified potential tools, and aided in selecting alternatives. Participants reported an average 40% improvement in understanding in the topics covered in the course. More than 70% indicated that they could determine how to appropriately use the toolbox contracts and strategies. Participants also were expected to have improved their income and/or reduced their risk exposure.

Number of Participants: 124

Outcomes

Project Steps

PROMOTIONAL MATERIALS

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EDUCATIONAL MATERIALS

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DELIVERY AREA

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