Risk Management Tools: Helping Connecticut Farms Grow

Horsebarn Hill at UConn
A view of Horsebarn Hill at sunrise on July 20, 2017. (Peter Morenus/UConn Photo)

“Agriculture is inherently a risk filled profession,” says Associate Extension Educator Joseph Bonelli. “Utilizing risk management is a tool for farmers to minimize the impacts of threats they can’t completely control by reducing the impact of certain dangers on their farm business.”

UConn Extension has a United States Department of Agriculture (USDA) Risk Management Association (RMA) grant for farmers and growers, specifically focusing on crop insurance and its options. USDA offers fewer disaster assistance funds, and wants farmers to take a greater interest in managing their risks and related financial impacts. The program is designed to create a safety net for operations through insurance for weather incidents, pests, or a lack of market.

The beauty of the programming is that Extension educators can weave in other topics of interest in areas of risk management for farmers. Examples include production risk, plant diseases, or labor. RMA covers any practice that mitigates risk on a farm operation.

“I enjoy helping farmers develop solutions to problems,” Bonelli states. “I ask them what keeps them up at night. For many farmers its problems that risk management can help them mitigate. Extension helps farmers understand the tools that are available, and grow the farm for the next generation.”

Mary Concklin, Visiting Associate Extension Educator for Fruit Production and IPM, is the co- principal investigator on the RMA grant with Bonelli. An advisory board of 12 people meets annually to provide input on programming. Members of the committee include Extension educators, Farm Bureau, the Department of Agriculture, and industry organizations.

Programs offered include workshops and one-on-one sessions with technical advisors. The RMA program has a suite of educational resources. A video series was created featuring farmers from different sectors of agriculture discussing how crop insurance has helped their operation. A monthly e-newsletter was recently introduced. Each issue showcases a farmer, and provides tips that farmers can immediately put into practice.

Agricultural producers appreciate that RMA programs have an impartial approach, and are not trying to sell anything. Program instructors serve as technical advisors and a sounding board.

UConn Extension is part of a network of information through our association with other land grant universities and Extension systems, and brings in outside expertise as it’s needed by our farmers. Risk management is also incorporated into other UConn Extension programs for agricultural producers.

Connecticut farmers have experienced a tremendous shift from wholesale to retail marketing. The demands on farmers and growers to understand how to promote and market value added crops has added another level of responsibility, where before farmers only focused on production. Direct marketing brings another whole area of risk through product liability and competition.

Not all national crop insurance programs fit Connecticut agriculture. Farmers need to make an informed decision
based on the facts as to whether or not a policy fits their business, and should be purchased. Bonelli and Concklin provide feedback to USDA on the reasons why Connecticut farmers choose not to purchase insurance, with the goal of improv- ing federal programs available.

“We try to be on the leading edge of what’s new to help farmers be more productive and financially viable,” Bonelli concludes. “It’s rewarding that UConn Extension is part of the success and resiliency of farmers in our state. No one organization is responsible, we’re part of a team working with the farmers to grow their businesses.”

Article by Stacey Stearns