This section will lead you through a series of steps and questions that will help you identify the anticipated risk management improvement for the producers. For each proposed risk management result, you will be asked to identify the risk area, risk management topic, the producer action, and the number of producers you anticipate will achieve that action. You will also be asked to identify verification/performance measures for each of the proposed results.
If you are uncertain about what defines agricultural risk, Introduction to Risk Management is an excellent source document that will help you understand the five risk categories associated with farm and ranch businesses (production, marketing, financial, legal, and human).
Proposed Result
Identify what you anticipate farmers and ranchers will learn, achieve, or apply as a result of participating in your project. At the end of your program delivery, the proposed risk management results should put producers in a better position to manage risk in order to improve their farm or ranch economic viability. This will be the single most important factor the reviewers consider when deciding whether a project is funded. (Word Limit per result: 25)
Risk Area and Topic
The verification system organizes topics by risk area. For each proposed result first select a risk area (Production, Marketing, Financial, Legal, Human), and then choose a corresponding topic from the list provided (see list at end of this section).
Producer Action
Producer actions describe what program participants will do relative to the specific proposed result. There are five levels of producer actions which are listed in order of increasing producer engagement.
• Understand - learn, increase awareness, identify
• Analyze - evaluate, investigate, assess, review, consider, explore
• Develop - write, conduct, obtain, create
• Decide - commit to, indicate, choose
• Implement - adopt, establish, incorporate, initiate, use
You may have several producer actions for a component of your program. For example, a proposed result may be that producers will understand how to write a marketing plan with the producer action being “Understand”. You may have a second proposed result that producers will write a marketing plan with the producer action being “Develop”. Finally, you may have a third result that producers will implement their marketing plan with the producer result being “Implement”.
When Measured
Enter when you expect to evaluate how many producers accomplished each proposed result. This needs to be entered as a specific date during the project implementation.
Estimated Number
Enter the estimated number of producers you expect to achieve the proposed result. This estimated number may vary based upon the level of producer engagement required.
How Will You Verify
Enter the method and/or tool that you will use to verify (measure) how many participants were able to accomplish the proposed risk management results you listed in this section.
Add New Result
To enter a new Proposed Result, click on Add New Item. The screen below will open, allowing you to enter or edit proposed results.
Re-Order Results
The order in which the Proposed Results are presented can be changed by clicking the icon on the left side and dragging a given result to its desired location.
Edit Result
Click on the pencil icon to edit a proposed result.
Delete Result
Click on the red trash can to delete a proposed result.
Risk Management Areas and Topics
Identify a Risk Area and a Risk Management Topic for each Proposed Result from this list:
Production
o Economic risks of new technologies
o Crop Insurance products
o Product and enterprise diversification
o Transition to new production systems
o Water use decisions
o Erosion control measures
o Good farming practices
o Wildlife management
o Forest management
o Range management
o Climate smart practices
Marketing
o Analysis of market fundamentals
o Cash and futures pricing tools
o Marketing plans and strategies
o Branded, certified or identity preserved marketing
o Direct marketing
o Contract production
o Organic marketing and prices
Financial
o Agri-tourism
o Alternative energy investments
o Asset management including leasing and renting
o Business and strategic planning
o Cost of production and financial benchmarking
o Economics of input decisions
o Financial records and analysis
o Returns to alternative energy investments
o Value-added enterprises
Legal
o Contracts and leases
o Environmental regulations
o Food safety liability
o Labor regulations
o Personal and business liability
Human
o Employee management and communication
o Health, stress, and well being
o Interpersonal, family and business relationships
o Labor supply, recruitment, and retention
o Transition and estate planning
o Farm Safety