Category Archives: Risk Management

The Most Common Question: Rental Rates and Terms

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The most common question these days is what to charge, what to pay and how to set terms for renting agricultural assets. Follow these links to our resource library to learn more about farm rental relationships. These resources are to be used for educational purposes and we encourage you to seek consult from legal, tax and insurance professionals when establishing formal rental relationships.

Sample Lease: Multi-year

Sample Lease: Short Form

Farm Rental Rate Guide

You can also contact Land for Good. They provide limited introductory consult and additional support services to assist you with your decisions.

Spaces Limited for Winter Farm Business Planning

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UVM Extension Farm Viability provides individualized business planning support to commercial farm owners in Vermont. We have a small number of spaces left in our program for farms seeking to develop business plans or complete business analysis by Spring 2016. Sign up now or contact the program for more information. Once the winter roster is full we will begin to enroll participating farms on a short term waiting list for next years program cycle. Eligible farms are required to have been in  business for at least 3 years and show gross sales of at least $15,000 in the most recent year.

UVM Extension Farm Viability works with farms to develop business plans, complete enterprise analysis, prepare cash flow budgets/financial analysis and develop farm succession plans. Coming up this winter, our staff will also be providing additional business education programs. Watch our website for the schedule of winter 2016 programs.

 

Free for Farmers! Workplace Services and Counseling

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Farm First is a free and confidential  program available for Vermont farm owners and family members seeking assistance on a  personal and workplace issues. The program can provide assistance when dealing with farm labor issues  that are difficult to resolve on your own.

The program can also provide confidential counseling services related to stress, anxiety, depression,addiction and other situations where the guidance of a professional is needed. The program is available to farm owners and related family members involved in the business. Farm owners can also consider if they want to enroll in expanded employee assistance programs (EAP) to make similar services available for their employees at a very low cost.

Call Farm First at  1- 877- 493- 6216

Click this link for the Farm First description at the Vermont Agency of Agriculture website: Farm First for Vermont Farmers

Follow this web link to Invest EAP

 

Milk Prices Dropping: New MPP Deadline Dec 19th

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The USDA has extended the application deadline for the Dairy Margin Protection Program to December 19th. Milk price forecasts are showing significant decline in prices over the next several months.

Bob Parsons, University of Vermont Ag Economist, has shared these figures below that show the probability of margins dropping below various coverage levels….

“From the table below, the % numbers are the probability of return over feed cost dropping below the amount on the left hand column.  For example while the expected return over feed costs for March-April is $8.52, the probability of it dropping below $7 is 18% and 10% chance of dropping below $6.50. Remember that in the past that when milk prices drop, they tended to drop further than the markets predicted.”

Margin Level Nov-Dec 2014 Jan-Feb 2015 Mar-Apr 2015 May-Jun 2015 Jul-Aug 2015 Sep-Oct 2015 Nov-Dec 2015 Jan-Feb 2016
Expected $12.91 $9.20 $8.52 $8.64 $9.18 $10.13 $10.12 $9.79
< $8.00 – 13% 39% 39% 30% 15% 21% 29%
< $7.50 – 6% 28% 29% 21% 10% 15% 23%
< $7.00 – 2% 18% 20% 15% 6% 10% 17%
< $6.50 – – 10% 12% 10% 3% 6% 12%
< $6.00 – – 5% 7% 6% 1% 4% 8%
< $5.50 – – 2% 4% 3% 1% 2% 5%
< $5.00 – – 1% 2% 2% – 1% 3%
< $4.50 – – – 1% 1% – – 1%
< $4.00 – – – – – – – 1%

December 5th Deadline, Dairy Margin Protection Program

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The deadline for enrollment in the Margin Protection Program for Dairy has been extended to Friday December 5th. MPP is a  revenue risk management tool for dairy producers when the difference between the price of milk and price of feed falls below coverage levels that farmers themselves choose. Dairy producers should contact their local USDA Farm Service Agency office to get information on enrollment this week. This weeks deadline marks the last chance dairy farms will have access to this program until 2016.

Information about the MPP-Dairy is available from USDA Farm Service Agency at this website: USDA FSA , MPP DAIRY

An online decision tool is available for farmers to use at this website: MPP DECISION TOOLThe tool allows a farmer to see the financial impact of how MPP enrollment would impact their business at different selected coverage levels. Instructions on how to use the tool are available on the website.

Farm Business Specialist Dennis Kauppila (UVM Extension) has created a simple worksheet that can be filled out while using the online decision tool. The sheet allows you to see how this program would impact your farm had the program been running in 2009 and 2012. Download the worksheet here: MPP-Dairy 3 year tables-1

Here is a list of Vermont FSA offices: VERMONT FSA COUNTY MAP (click your county on the map to get contact information)

Meetings to Explain Dairy Margin Protection Program

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What is your plan to handle dairy milk price volatility and feed cost shifts over the next 3 years? Informational meetings are planned for October 13-17  throughout Vermont to explain the program to dairy farmers and business specialists.

Click this link for a list of sessions and locations: October Schedule: Dairy Margin Protection Program Meetings

Health Care Changes for Farms

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Vermont Health Connect has been providing information sessions about important changes to health care enrollment for farmers.  Most recently they have developed this guide:VT Health Connect Ag Producer Resource Packet 3.3.14.

This is a critical time for businesses and individuals. There is a March 15th sign up deadline for individuals seeking coverage to begin April 1st. Many group association plans that farmers have traditionally enrolled through will expire on March 31st.

Click the link above to open the most recent VT Health Connect guide and find details, frequently asked questions and important contacts.