Average United States net farm income from 2004 to 2011 was more than $77 billion, the most profitable period in real dollar terms since 1972-1975 (United States Department of Agriculture (USDA) Economic Research Service (ERS)). Farm balance sheets are at the strongest levels since the USDA started tracking data in 1960 (USDA-ERS), and farmland values have grown exponentially, with U.S. average farmland values rising more than eight percent per year in the 2004-2011 period (USDA National Agricultural Statistics Service)

Lockert, Christine

English

DigitalCommons@University of Nebraska

University of Nebraska - LincolnDigitalCommons@University of Nebraska - LincolnCornhusker Economics Agricultural Economics Department2013North Central Extension Risk ManagementEducation CenterChristine LockertUniversity of Nebraska-Lincoln, clockert2@unl.eduFollow this and additional works at: http://digitalcommons.unl.edu/agecon_cornhuskerThis Article is brought to you for free and open access by the Agricultural Economics Department at DigitalCommons@University of Nebraska -Lincoln. It has been accepted for inclusion in Cornhusker Economics by an authorized administrator of DigitalCommons@University of Nebraska -Lincoln.Lockert, Christine, "North Central Extension Risk Management Education Center" (2013). Cornhusker Economics. 639.http://digitalcommons.unl.edu/agecon_cornhusker/639CORNHUSKERECONOMICSUniversity of Nebraska–Lincoln ExtensionMay 22, 2013Institute of Agriculture & Natural ResourcesDepartment of Agricultural Economicshttp://agecon.unl.edu/cornhuskereconomicsNorth Central Extension Risk Management Education CenterMarket ReportYr Ago4 WksAgo 5/17/13Livestock and Products, Weekly AverageNebraska Slaughter Steers,  35-65% Choice, Live Weight. . . . . . . .Nebraska Feeder Steers,   Med. & Large Frame, 550-600 lb.. . . .Nebraska Feeder Steers,  Med. & Large Frame 750-800 lb. . . . .Choice Boxed Beef,   600-750 lb. Carcass. . . . . . . . . . . . . .Western Corn Belt Base Hog Price  Carcass, Negotiated. . . . . . . . . . . . . .Pork Carcass Cutout, 185 lb. Carcass,     51-52% Lean.. . . . . . . . . . . . . . . . . . .Slaughter Lambs, Ch. & Pr., Heavy,  Wooled, South Dakota, Direct. . . . . . .National Carcass Lamb Cutout,  FOB. . . . . . . . . . . . . . . . . . . . . . . . . .$124.17175.28       *191.4584.6382.06       *357.08$126.11162.72136.66190.5178.1183.26115.00288.29$125.96163.68137.96207.4989.1391.27115.00282.65Crops,  Daily Spot PricesWheat, No. 1, H.W.  Imperial, bu. . . . . . . . . . . . . . . . . . . . .Corn, No. 2, Yellow Nebraska City, bu.. . . . . . . . . . . . . . . .Soybeans, No. 1, Yellow Nebraska City, bu.. . . . . . . . . . . . . . . .Grain Sorghum, No. 2, Yellow  Dorchester, cwt. . . . . . . . . . . . . . . . . .Oats, No. 2, Heavy  Minneapolis, MN , bu. . . . . . . . . . . . .6.256.5613.7910.643.636.996.6614.3311.214.256.906.9815.1412.113.95FeedAlfalfa, Large Square Bales,   Good to Premium, RFV 160-185  Northeast Nebraska, ton. . . . . . . . . . .Alfalfa, Large Rounds, Good  Platte Valley, ton. . . . . . . . . . . . . . . . .Grass Hay, Large Rounds, Good  Nebraska, ton. . . . . . . . . . . . . . . . . . .Dried Distillers Grains, 10% Moisture,   Nebraska Average. . . . . . . . . . . . . . .Wet Distillers Grains, 65-70% Moisture,   Nebraska Average. . . . . . . . . . . . . . .200.00145.0097.50220.0079.00245.00227.50222.50239.5091.50       *227.50       *226.0092.50*No MarketAverage United States net farm income from 2004 to2011 was more than $77 billion, the most profitable periodin real dollar terms since 1972-1975 (United StatesDepartment of Agriculture (USDA) Economic ResearchService (ERS)). Farm balance sheets are at the strongestlevels since the USDA started tracking data in 1960(USDA-ERS), and farmland values have grownexponentially, with U.S. average farmland values risingmore than eight percent per year in the 2004-2011 period(USDA National Agricultural Statistics Service).Though the economic situation looks great for U.S.agriculture, producers are also facing some of the mostvolatile and uncertain times in history. From a low of $1.87per bushel in December 2005, the nearby corn futurescontract on the Chicago Board of Trade climbed to $7.65 inJune 2008, fell to $2.90 in December 2008 and climbed to$7.99 ¾ in June 2011. It has since fallen to settle at $5.86as of early June 2012 (Chicago Mercantile Exchange (CMEGroup)). Energy prices that drive fuel and fertilizer costsfor producers have exhibited similar volatility. As illustrated, managing both input and output pricerisk can be a major challenge for producers. But evenmanaging price risk has itself become a risk, as businessfailures at Verasun Ethanol, Eastern Livestock and MFGlobal have exposed farmers and ranchers to counter-partyrisk. Coupling price risk management with production andfinancial risk management may help address income orrevenue risk on the farm or ranch. But, federal farmprograms are also shifting away from traditional price andincome supports and toward risk management, putting moreresponsibility on the shoulders of producers for managingrisk.Producers face numerous other legal and human risksas well. Environmental regulations, new rules that couldconstrain production and marketing methods, food safetyregulations, proposed rules for agricultural labor and otherExtension is a D ivision of the Institute of Agriculture and Natural Resources at the University of Nebraska–Lincolncooperating with the Counties and the U.S. Departm ent of Agriculture.University of Nebraska Extension educational program s abide with the non-discrim ination policies of the University of Nebraska–Lincoln and the United States Departm ent of Agriculture.issues including tax and trade policy all affect producers.Human risks such as labor and personnel management ortransition and estate planning also have a substantialimpact.Clearly, risk management continues to be a criticalneed for agriculture in 2013, even with the currenteconomic strength of the sector. The challenge forproducers is to develop and implement effective riskmanagement strategies to manage risk and position thefarm or ranch for future growth and success.The Extension Risk Management Education (ERME)program, funded by USDA’s National Institute of Foodand Agriculture provides training to help producers learnnew strategies to manage complex and growingagricultural risks. The goal of the program is simple -- helpfarmers and ranchers manage risk. ERME strives toachieve this goal by encouraging and funding innovativeprograms across the country and helping programs focuson tangible results (ERME, 2012). Four ERME Centersare located across the country at the University ofDelaware (Northeast), the University of Arkansas(Southern), Washington State University (Western) andthe University of Nebraska-Lincoln (North Central).  Since 2001, the North Central Risk ManagementEducation Center, hosted by the University of Nebraska-Lincoln Agricultural Economics Department, hasaddressed the volatility and uncertainty that producers inour 12-state region face in agriculture, the evolving farmpolicy environment that increasingly emphasizes riskmanagement and the legislative mandate to provide riskmanagement education to agricultural producers. TheNorth Central region includes Illinois, Indiana, Iowa,Kansas, Michigan, Minnesota, Missouri, Nebraska, NorthDakota, Ohio, South Dakota and Wisconsin. During thistime, the Center has awarded 273 projects and $8.9 millionin funding to public, private and non-profit entities to carryout producer-focused, results-based risk management edu-cation programs. Our educational programs have resultedin 60,967 farm and ranch participants receiving riskmanagement education, and more than 122,118measurable producer actions to better manage risk on theiroperations. Examples of risk management improvements(or results) that were learned, achieved or applied byproducers from recently completed projects are:º In Kansas, 291 landlords and producers participated ina series of workshops to improve their land leasingskills.! Based on on-line survey results, the total acreagecontrolled or managed by participants could bemore than 900,000 acres, indicating a very largeimpact of these workshops.! Knowledge and skill levels were affected for eachof the skills included in the workshop.  Based onthe surveys returned:# 93 percent reported that they had evaluated oneor more of their farm leases and/or hadnegotiated a change in lease terms.# 78 percent reported that they use Excel morethan they did prior to the workshops.# 67 percent have used KSU-Lease to determineand negotiate an appropriate and equitable leasefor their operation. º In Iowa, 395 producers participated in workshopsaddressing estate planning and farm successionchallenges.! 98 percent of survey respondents have a betterunderstanding of the people who should be part oftheir estate planning team.! 293 participants will review their current estateplan with their estate planning team and makechanges as necessary.! The Ag Decision Maker website has become arecognized source of unbiased estate planninginformation, as evidenced by the 2,229 planningquestionnaires that have been downloaded andreviewed.º 123 farm women and men participated in riskmanagement education for Indiana farm women inorder to be better business partners.  ! Six months after completing the Annie’s Project,ladies successfully implemented new riskmanagement tools into their farm operations, suchas making changes in insurance policies, havingbetter organized financial and production recordsfor decision making, improved communicationskills and completing farm financial statements.! 60 percent were planning to set 2012 farmproduction goals.! 62 percent are more involved in the decisionmaking processes for the farm since the workshops.! The tools provided in the workshops have helpedfarm operations save from $1,000 up to $8,000.What is Risk Management?There are five general types of risk: financial risk,production risk, legal risk, marketing risk andhuman/personal risk. (Baquet, Hambleton, Jose, 1997)Financial risk refers to a producer’s farm credit and theobligation and ability of the farm to repay its debt. Thecurrent economic uncertainty greatly affects a producer’sfinancial risk.Production risk refers to the uncertainty of themanagement of crops and livestock. Weather, disease, pestsand other factors affect the quantity and quality of thecommodities produced.Legal risk results from changing governmental policies.Tax laws, chemical regulations, price support payments andchanges in the Farm Bill all affect the legal risk a producerfaces.Marketing risk is the uncertainty about prices producersreceive for commodities sold and what their productioncosts may be.Human/Personal risk includes factors such as farmtransition/succession, labor relations, disability, inter-generational issues or divorce.Funding DecisionsNorth Central ERME funding decisions are made byan Advisory Council composed of nine individualsinvolved in agricultural lending, insurance, marketing,extension and production, all from the North CentralRegion. When considering a proposal for funding, theAdvisory Council looks to see that in addition to meetingat least one of the five areas of risk management, eachproject also addresses six criteria: proposed risk manage-ment results, results verification, producer demand,collaboration, creativity and applicability. Successfulprojects will identify targeted results that will helpproducers manage risk, and then describe how the projectwill measure those results. In addition, applicants areencouraged to consider projects that focus on special-emphasis programming such as beginning or transitioningfarmers, immigrant or minority farmers, women’seducation and sustainable or value-added agriculture.   Table 1. Awards by StateStateNumber of Awards2001 - 2013Illinois 20Indiana 14Iowa 43Kansas 17Michigan 10Minnesota 28Missouri 22Nebraska 21North Dakota 16South Dakota 22Ohio 19Wisconsin 41Total 273Public Lead Institutions 224Private/Non-Profit Institutions 49In 2013, 52 pre-proposals requesting $1,964,177 weresubmitted through the on-line application process. Of thisgroup, 31 were asked to submit a full-proposal.  In April2013, the Advisory Council awarded $652,124 for 16projects. The project period is July 1, 2013 – June 30, 2014. Center ActivitiesThe Request for Applications (RFA) is released in earlyNovember each year, with pre-proposals due on-line inmid-December. North Central Center staff members hold awebinar for anyone interested in submitting a pre-proposalduring this open time. Participants learn what makes a goodrisk management project and proposal, the criteria forproposal evaluation and how to use the on-line applicationsite. Project directors have indicated that this training isvery valuable for them as they look at potential projecttopics and then put their pre-proposal together. The Center met with stakeholder listening groups, theNorth Central Extension Farm Management Committee andour Council several times last year to identify and assesseducational needs and emerging issues. The Center buildson the needs assessment results to implement and deliverthe competitive grants program and related programming,as appropriate.Together with the other regional centers and the DigitalCenter located at the University of Minnesota, the NorthCentral Center recently co-hosted the 7  Extension RiskthManagement Education National Conference in Denver,Colorado, with nearly 200 participants. This biennialconference featured three keynote speakers, over 40 hoursof individual concurrent session presentations, anetworking reception, poster session and a pre-conferenceseminar. The ERME Conference brings together private andpublic sector educators, crop insurance agents, lenders andother agricultural professionals, providing an opportunityto share ongoing and emerging successful risk managementeducation efforts which target agricultural producers andtheir families. The Centers will sponsor the 2014 NationalWomen in Agriculture Conference next spring inIndianapolis, Indiana.Each summer the North Central Center holds aworkshop for new project directors to provide them withthe building blocks to deliver successful projects andachieve results. Previous workshops have included topicssuch as risk management education, effective communi-cation, social media and evaluation and follow-up. The2013 Summer Workshop will be held July 9-10 inMinneapolis, Minnesota.In addition to the responsibilities of the Center, theTrade Adjustment Assistance for Farmers (TAA) programoffers free training to producers and fishermen of certifiedagricultural commodities, with funding provided by the2009 Federal Stimulus Package. Certification ofcommodities took place during 2010, and includes thosecommodities which have been adversely affected by importcompetition.  Certified commodities for the North Central Region include asparagus and catfish, and the Center has also helped with shrimp. TAA staff have identified local producers,developed curriculum for producer education and are assisting these producers through their education process. All of theparticipants have now received orientation and training.  Ninety percent of the eligible producers working through the NorthCentral Center have completed their Long-Term Business Plan and their participation in the program. Remaining eligibleproducers have a few weeks to submit their plans. More information on TAA can be found on the program’s website,www.taaforfarmers.org. 2013 Funded ProjectsCongratulations to the following project directors whose projects were selected for funding in 2013:Marin Bozic, University of MinnesotaArlin Brannstrom, University of Wisconsin Center for Dairy ProfitabilityErin Cortus, South Dakota State University ExtensionLaura Edwards, South Dakota State University ExtensionTim Eggers, Iowa State University ExtensionJulie Fox, The Ohio State UniversityJoe Horner, University of MissouriSteve Huntzicker, University of Wisconsin ExtensionLee Kilmer, Iowa State UniversityTim Lemmons, University of Nebraska-LincolnRyan Milhollin, University of MissouriDale Nordquist, University of Minnesota Center for Farm Financial ManagementTamara Ogle, Purdue Extension Cass CountyGary Schnitkey, University of IllinoisMercedes Taylor-Puckett, Kansas Farmers UnionEdward Usset, University of Minnesota Center for Farm Financial ManagementNCRME Center StaffBrad Lubben, Director and Extension Assistant Professor and Policy SpecialistDave Goeller, Assistant Director & TAA CoordinatorChristine Lockert, Grants CoordinatorCheryl Griffith, Publicity and PromotionKaren Kuhn, TAA Project Specialist www.ncrme.orgReferences:Baquet, Alan, Ruth Hambleton and Doug Jose. Introduction to Risk Management – Understanding Agricultural Risk. RiskManagement Agency, USDA, 1997.Extension Risk Management Education. “Helping America’s Farmers and Ranchers Manage Risk.”  Progress Report,  January2012.Christine Lockert, (402) 472-2039Grants CoordinatorNorth Central Extension Risk Management CenterDepartment of Agricultural EconomicsUniversity of Nebraska-Lincolnclockert2@unl.edu

North Central Extension Risk Management Education Center

The Extension Risk Management Education program, funded by the United States Department of Agriculture’s (USDA) National Institute of Food and Agriculture  provides training to help producers learn new strategies to manage complex and growing agricultural risks. The goal of the program is simple - help farmers and ranchers manage risk. ERME strives to achieve this goal by encouraging and funding innovative programs across the country and helping programs focus on tangible results (ERME, 2012). Four ERME Centers are located across the country; the University of Delaware (Northeast), the University of Arkansas (Southern), Washington State University (Western), and the University of Nebraska-Lincoln (North Central)

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University of Nebraska - Lincoln 
DigitalCommons@University of Nebraska - Lincoln 
Cornhusker Economics Agricultural Economics Department 
5-2012 
North Central Extension Risk Management Education Center 
Christine Lockert 
University of Nebraska-Lincoln 
Follow this and additional works at: https://digitalcommons.unl.edu/agecon_cornhusker 
 Part of the Agricultural and Resource Economics Commons 
Lockert, Christine, "North Central Extension Risk Management Education Center" (2012). Cornhusker 
Economics. 575. 
https://digitalcommons.unl.edu/agecon_cornhusker/575 
This Article is brought to you for free and open access by the Agricultural Economics Department at 
DigitalCommons@University of Nebraska - Lincoln. It has been accepted for inclusion in Cornhusker Economics by an 
authorized administrator of DigitalCommons@University of Nebraska - Lincoln. 
CORNHUSKER
ECONOMICS
University of Nebraska–Lincoln Extension
May 16, 2012
Institute of Agriculture & Natural Resources
Department of Agricultural Economics
http://agecon.unl.edu/cornhuskereconomics
North Central Extension Risk Management Education Center
Market Report
Yr 
Ago
4 Wks
Ago 5/11/12
Livestock and Products,
 Weekly Average
Nebraska Slaughter Steers,
  35-65% Choice, Live Weight. . . . . . . .
Nebraska Feeder Steers, 
  Med. & Large Frame, 550-600 lb.. . . .
Nebraska Feeder Steers,
  Med. & Large Frame 750-800 lb. . . . .
Choice Boxed Beef, 
  600-750 lb. Carcass. . . . . . . . . . . . . .
Western Corn Belt Base Hog Price
  Carcass, Negotiated. . . . . . . . . . . . . .
Pork Carcass Cutout, 185 lb. Carcass,   
  51-52% Lean.. . . . . . . . . . . . . . . . . . .
Slaughter Lambs, Ch. & Pr., Heavy,
  Wooled, South Dakota, Direct. . . . . . .
National Carcass Lamb Cutout,
  FOB. . . . . . . . . . . . . . . . . . . . . . . . . .
$113.60
152.78
133.10
176.54
91.88
93.08
189.00
406.30
$122.64
182.97
153.83
177.79
79.27
78.22
148.63
371.29
$120.70
181.72
150.35
190.37
78.11
79.23
      *
356.09
Crops, 
 Daily Spot Prices
Wheat, No. 1, H.W.
  Imperial, bu. . . . . . . . . . . . . . . . . . . . .
Corn, No. 2, Yellow
 Nebraska City, bu.. . . . . . . . . . . . . . . .
Soybeans, No. 1, Yellow
 Nebraska City, bu.. . . . . . . . . . . . . . . .
Grain Sorghum, No. 2, Yellow
  Dorchester, cwt. . . . . . . . . . . . . . . . . .
Oats, No. 2, Heavy
  Minneapolis, MN , bu. . . . . . . . . . . . .
7.50
6.76
13.45
10.66
3.44
5.48
6.20
13.83
10.45
3.43
5.30
6.01
13.74
9.66
3.55
Feed
Alfalfa, Large Square Bales, 
  Good to Premium, RFV 160-185
  Northeast Nebraska, ton. . . . . . . . . . .
Alfalfa, Large Rounds, Good
  Platte Valley, ton. . . . . . . . . . . . . . . . .
Grass Hay, Large Rounds, Good
  Nebraska, ton. . . . . . . . . . . . . . . . . . .
Dried Distillers Grains, 10% Moisture, 
  Nebraska Average. . . . . . . . . . . . . . .
Wet Distillers Grains, 65-70% Moisture, 
  Nebraska Average. . . . . . . . . . . . . . .
140.00
77.50
       *
208.50
80.50
225.00
145.00
97.50
229.25
76.75
      *
145.00
97.50
225.00
76.13
*No Market
The Extension Risk Management Education (ERME)
program, funded by the United States Department of
Agriculture’s (USDA) National Institute of Food and
Agriculture provides training to help producers learn new
strategies to manage complex and growing agricultural
risks. The goal of the program is simple - help farmers and
ranchers manage risk. ERME strives to achieve this goal by
encouraging and funding innovative programs across the
country and helping programs focus on tangible results
(ERME, 2012). Four ERME Centers are located across the
country; the University of Delaware (Northeast), the
University of Arkansas (Southern), Washington State
University (Western), and the University of Nebraska-
Lincoln (North Central).  
Since 2001, the North Central Risk Management
Education Center, hosted by the University of Nebraska-
Lincoln Agricultural Economics Department has been
tasked with providing risk management education to the
farmers and ranchers in our 12-state region. The region
includes Illinois, Indiana, Iowa, Kansas, Michigan,
Minnesota, Missouri, Nebraska, North Dakota, Ohio, South
Dakota and Wisconsin. During this time, the Center has
awarded 257 projects and $6.9 million in funding to public,
private and non-profit entities to carry out producer-
focused, results-based risk management education pro-
grams. Our educational programs have helped producers
from 12 states to understand (48,783 participant actions),
evaluate (16,906 participant actions), develop (14,955
participant actions), decide (12,405 participant actions) and
implement (18,935 participant actions) risk management
improvements. Examples of risk management improve-
ments (or results) that were learned, achieved or applied by
producers from recently completed projects are:
# Over 450 Minnesota, Iowa, North Dakota and
Wisconsin agricultural producers took part in workshop
sessions which looked at several components that need
Extension is a D ivision of the Institute of Agriculture and Natural Resources at the University of Nebraska–Lincoln
cooperating with the Counties and the U.S. Departm ent of Agriculture.
University of Nebraska Extension educational program s abide with the non-discrim ination policies 
of the University of Nebraska–Lincoln and the United States Departm ent of Agriculture.
to be considered in a successful estate plan and
business transition. 
! 260 workshop participants reported via exit
interviews that they better understand components
of farm and ranch transition including
intergenerational communication, goal setting, tax
and financial issues, transfer strategies, business
entities and personal estate planning. 
! At the completion of the project over 60
individual producers had begun the process of
developing their first farm or ranch business
transition plan and their first personal estate plan. 
! After six months, 17 had already implemented
their plans.
# In Kansas, 125 producers learned about grain
marketing tools to help them effectively manage price
risk. 
! Follow-up surveys showed more than 75
producers are using the grain marketing tools and
knowledge gained at the workshops and have
implemented many basic changes in their own
marketing plans. 
! 40 producers have used a marketing tool that was
covered in the workshop that had not previously
been utilized, resulting in reduced risk and
increased profitability for their operation.  
! A web-based workshop series provided risk
management education to 123 Indiana women.  
! Six months after the workshop, new risk
management tools were successfully implemented
into the farm operations. 
! Sixty percent of participants are planning to set
2012 farm production goals.  
! Sixty-two percent of survey respondents have
become more involved in the decision making
processes for the farm since the workshops.  
! These tools have helped farm operations save
from $1,000 to $8,000.
What is Risk Management?
There are five general types of risk: financial risk,
production risk, legal risk, marketing risk and human/
personal risk. (Baquet, Hambleton, Jose, 1997).
Financial Risk refers to a producer’s farm credit and the
obligation and ability of the farm to repay its debt. The
current economic uncertainty greatly affects a producer’s
financial risk.
Production Risk refers to the uncertainty of the
management of crops and livestock. Weather, disease,
pests and other factors affect the quantity and quality of
the commodities produced.
Legal Risk results from changing governmental policies.
Tax laws, chemical regulations, price support payments and
changes in the Farm Bill all affect the legal risk a producer
faces.
Marketing Risk is the uncertainty about prices producers
receive for commodities sold, and what their production
costs may be.
Human/Personal Risk includes factors such as farm
transition/succession, labor relations, disability, inter-
generational issues or divorce.
Funding Decisions
North Central ERME funding decisions are made by an
Advisory Council composed of nine individuals involved in
agricultural lending, insurance, marketing, extension and
production, all from the North Central Region. When
considering a proposal for funding, the Advisory Council
looks to see that in addition to meeting at least one of the
five areas of risk management, each project also addresses
six criteria; proposed risk management results, results
verification, producer demand, collaboration, creativity and
applicability. Successful projects will identify targeted
results that will help producers manage risk and then
describe how the project will measure those results. In
addition, applicants are encouraged to consider projects that
focus on special-emphasis programming such as beginning
or transitioning farmers, immigrant or minority farmers,
women’s education and sustainable or value-added
agriculture.   
Since 2001, nearly 46,000 producers have directly
benefitted from risk management education programming
in the 12-state North Central Region. Table 1 (on next
page) shows awards by state.
In 2012, 69 pre-proposals requesting $2,506,001 were
submitted through the on-line application process. Of this
group, 38 were asked to submit a full-proposal. In April
2012, the Advisory Council awarded $585,697 for 19
projects. The project period is July 1, 2012 – June 30, 2013.
Center Activities
The Request for Applications (RFA) is released in early
November each year with pre-proposals due on-line in mid-
December. North Central Center staff members hold a
webinar for anyone interested in submitting a pre-proposal
during this open time. Participants learn what makes a good
risk management project and proposal, the criteria for
proposal evaluation and how to use the on-line application
site. Project directors have indicated that this training is
very valuable for them as they look at potential project
topics and then put their pre-proposal together. 
Together with the other regional Centers and the Digital
Center located at the University of Minnesota, the North
Central Center recently co-hosted the National Women in 
Table 1. Awards by State
                                          
    State
    Number of  Awards    
2001 - 2012
Illinois 19
Indiana 13
Iowa 41
Kansas 16
Michigan 10
Minnesota 25
Missouri 20
Nebraska 20
North Dakota 16
South Dakota 20
Ohio 18
Wisconsin 39
Total 257
Public Lead Institutions                         209
Private/Non-Profit Institutions                48
Agriculture Conference in Memphis, Tennessee, with over
180 participants attending. With over 40 hours of
individual concurrent session presentations, participants
learned about educational efforts which assist women
producers to effectively manage financial, production,
marketing, legal and human resource risks associated with
their agribusinesses. The Centers will sponsor the 2013
National Extension Risk Management Education
Conference next spring.
Each summer a workshop for new project directors is
held by the North Central Center, providing them with the
building blocks to deliver successful projects and achieve
results. Previous workshops have included topics such as
risk management education, effective communication,
social media and evaluation and follow-up. The 2012
Summer Workshop will be held in Milwaukee, Wisconsin
in July.
In addition to the responsibilities of the Center, the
Trade Adjustment Assistance for Farmers (TAA) program
offers free training to producers and fishermen of certified
agricultural commodities, with funding provided by the
2009 Federal Stimulus Package. Certification of
commodities took place during 2010 and includes those
commodities which have been adversely affected by
import competition. Certified commodities for the North
Central Region include asparagus and catfish, and the
Center has also helped with shrimp. TAA staff have
identified local producers, developed curriculum for
producer education and are assisting these producers
through their education process. All of the participants
have now received orientation and training. Almost all
have completed Initial Business Plans with over 90 percent
being assigned a consultant to complete their Long-Term
Business Plans. More information on TAA can be found on
the program’s website, www.taaforfarmers.org. 
2012 Funded Projects
Congratulations to the following project directors
whose projects were selected for funding in 2012:
Leigh Adcock: Women, Food and Agriculture               
           Network (Iowa)
Carl Duley: University of Wisconsin Cooperative     
           Extension-Buffalo County
Phil Durst: Michigan State University
Andrew Fidler: Dairy Grazing Services (Missouri)
Julie Fox: The Ohio State University
Thomas Green: AgFlex, Inc. (Wisconsin)
Peggy Hall: Ohio State University Extension
Kelly Heckaman: Purdue Extension Kosciusko County
Darwin Miller: Hardin County Extension Council          
          (Iowa State University)
Jim Pierce: Lincoln University Cooperative
Tracey Renelt: South Dakota State University
Chuck Schwartau: University of Minnesota Extension
Christine Skelly: Michigan State University
Michelle Soll: Legal Aid of Nebraska
Larry Tranel: Iowa State University
Edward Usset: University of Minnesota
Allan Vyhnalek: University of Nebraska-Lincoln
Crystal Weber: University of Missouri Extension
Julia Woodruff: Ag Credit (Ohio)
NCRME Center Staff
Brad Lubben, Director and Extension Assistant Professor
and Policy Specialist
Dave Goeller, Assistant Director & TAA Coordinator
Christine Lockert, Grants Coordinator
Cheryl Griffith, Publicity and Promotion
Karen Kuhn, TAA Project Specialist 
References:
Baquet, Alan, Ruth Hambleton and Doug Jose. Introduction
to Risk Management – Understanding Agricultural
Risk. Risk Management Agency, USDA, 1997.
Extension Risk Management Education. “Helping
America’s Farmers and Ranchers Manage Risk.”
Progress Report. January 2012.
Christine Lockert, (402) 472-2039
Administrative Program Associate
Dept. of Agricultural Economics
University of Nebraska-Lincoln
clockert2@unl.edu


University of Nebraska - Lincoln DigitalCommons@University of Nebraska - Lincoln Cornhusker Economics Agricultural Economics Department 5-2012 North Central Extension Risk Management Education Center Christine Lockert University of Nebraska-Lincoln Follow this and additional works at: https://digitalcommons.unl.edu/agecon_cornhusker  Part of the Agricultural and Resource Economics Commons Lockert, Christine, "North Central Extension Risk Management Education Center" (2012). Cornhusker Economics. 575. https://digitalcommons.unl.edu/agecon_cornhusker/575 This Article is brought to you for free and open access by the Agricultural Economics Department at DigitalCommons@University of Nebraska - Lincoln. It has been accepted for inclusion in Cornhusker Economics by an authorized administrator of DigitalCommons@University of Nebraska - Lincoln. CORNHUSKERECONOMICSUniversity of Nebraska–Lincoln ExtensionMay 16, 2012Institute of Agriculture & Natural ResourcesDepartment of Agricultural Economicshttp://agecon.unl.edu/cornhuskereconomicsNorth Central Extension Risk Management Education CenterMarket ReportYr Ago4 WksAgo 5/11/12Livestock and Products, Weekly AverageNebraska Slaughter Steers,  35-65% Choice, Live Weight. . . . . . . .Nebraska Feeder Steers,   Med. & Large Frame, 550-600 lb.. . . .Nebraska Feeder Steers,  Med. & Large Frame 750-800 lb. . . . .Choice Boxed Beef,   600-750 lb. Carcass. . . . . . . . . . . . . .Western Corn Belt Base Hog Price  Carcass, Negotiated. . . . . . . . . . . . . .Pork Carcass Cutout, 185 lb. Carcass,     51-52% Lean.. . . . . . . . . . . . . . . . . . .Slaughter Lambs, Ch. & Pr., Heavy,  Wooled, South Dakota, Direct. . . . . . .National Carcass Lamb Cutout,  FOB. . . . . . . . . . . . . . . . . . . . . . . . . .$113.60152.78133.10176.5491.8893.08189.00406.30$122.64182.97153.83177.7979.2778.22148.63371.29$120.70181.72150.35190.3778.1179.23      *356.09Crops,  Daily Spot PricesWheat, No. 1, H.W.  Imperial, bu. . . . . . . . . . . . . . . . . . . . .Corn, No. 2, Yellow Nebraska City, bu.. . . . . . . . . . . . . . . .Soybeans, No. 1, Yellow Nebraska City, bu.. . . . . . . . . . . . . . . .Grain Sorghum, No. 2, Yellow  Dorchester, cwt. . . . . . . . . . . . . . . . . .Oats, No. 2, Heavy  Minneapolis, MN , bu. . . . . . . . . . . . .7.506.7613.4510.663.445.486.2013.8310.453.435.306.0113.749.663.55FeedAlfalfa, Large Square Bales,   Good to Premium, RFV 160-185  Northeast Nebraska, ton. . . . . . . . . . .Alfalfa, Large Rounds, Good  Platte Valley, ton. . . . . . . . . . . . . . . . .Grass Hay, Large Rounds, Good  Nebraska, ton. . . . . . . . . . . . . . . . . . .Dried Distillers Grains, 10% Moisture,   Nebraska Average. . . . . . . . . . . . . . .Wet Distillers Grains, 65-70% Moisture,   Nebraska Average. . . . . . . . . . . . . . .140.0077.50       *208.5080.50225.00145.0097.50229.2576.75      *145.0097.50225.0076.13*No MarketThe Extension Risk Management Education (ERME)program, funded by the United States Department ofAgriculture’s (USDA) National Institute of Food andAgriculture provides training to help producers learn newstrategies to manage complex and growing agriculturalrisks. The goal of the program is simple - help farmers andranchers manage risk. ERME strives to achieve this goal byencouraging and funding innovative programs across thecountry and helping programs focus on tangible results(ERME, 2012). Four ERME Centers are located across thecountry; the University of Delaware (Northeast), theUniversity of Arkansas (Southern), Washington StateUniversity (Western), and the University of Nebraska-Lincoln (North Central).  Since 2001, the North Central Risk ManagementEducation Center, hosted by the University of Nebraska-Lincoln Agricultural Economics Department has beentasked with providing risk management education to thefarmers and ranchers in our 12-state region. The regionincludes Illinois, Indiana, Iowa, Kansas, Michigan,Minnesota, Missouri, Nebraska, North Dakota, Ohio, SouthDakota and Wisconsin. During this time, the Center hasawarded 257 projects and $6.9 million in funding to public,private and non-profit entities to carry out producer-focused, results-based risk management education pro-grams. Our educational programs have helped producersfrom 12 states to understand (48,783 participant actions),evaluate (16,906 participant actions), develop (14,955participant actions), decide (12,405 participant actions) andimplement (18,935 participant actions) risk managementimprovements. Examples of risk management improve-ments (or results) that were learned, achieved or applied byproducers from recently completed projects are:# Over 450 Minnesota, Iowa, North Dakota andWisconsin agricultural producers took part in workshopsessions which looked at several components that needExtension is a D ivision of the Institute of Agriculture and Natural Resources at the University of Nebraska–Lincolncooperating with the Counties and the U.S. Departm ent of Agriculture.University of Nebraska Extension educational program s abide with the non-discrim ination policies of the University of Nebraska–Lincoln and the United States Departm ent of Agriculture.to be considered in a successful estate plan andbusiness transition. ! 260 workshop participants reported via exitinterviews that they better understand componentsof farm and ranch transition includingintergenerational communication, goal setting, taxand financial issues, transfer strategies, businessentities and personal estate planning. ! At the completion of the project over 60individual producers had begun the process ofdeveloping their first farm or ranch businesstransition plan and their first personal estate plan. ! After six months, 17 had already implementedtheir plans.# In Kansas, 125 producers learned about grainmarketing tools to help them effectively manage pricerisk. ! Follow-up surveys showed more than 75producers are using the grain marketing tools andknowledge gained at the workshops and haveimplemented many basic changes in their ownmarketing plans. ! 40 producers have used a marketing tool that wascovered in the workshop that had not previouslybeen utilized, resulting in reduced risk andincreased profitability for their operation.  ! A web-based workshop series provided riskmanagement education to 123 Indiana women.  ! Six months after the workshop, new riskmanagement tools were successfully implementedinto the farm operations. ! Sixty percent of participants are planning to set2012 farm production goals.  ! Sixty-two percent of survey respondents havebecome more involved in the decision makingprocesses for the farm since the workshops.  ! These tools have helped farm operations savefrom $1,000 to $8,000.What is Risk Management?There are five general types of risk: financial risk,production risk, legal risk, marketing risk and human/personal risk. (Baquet, Hambleton, Jose, 1997).Financial Risk refers to a producer’s farm credit and theobligation and ability of the farm to repay its debt. Thecurrent economic uncertainty greatly affects a producer’sfinancial risk.Production Risk refers to the uncertainty of themanagement of crops and livestock. Weather, disease,pests and other factors affect the quantity and quality ofthe commodities produced.Legal Risk results from changing governmental policies.Tax laws, chemical regulations, price support payments andchanges in the Farm Bill all affect the legal risk a producerfaces.Marketing Risk is the uncertainty about prices producersreceive for commodities sold, and what their productioncosts may be.Human/Personal Risk includes factors such as farmtransition/succession, labor relations, disability, inter-generational issues or divorce.Funding DecisionsNorth Central ERME funding decisions are made by anAdvisory Council composed of nine individuals involved inagricultural lending, insurance, marketing, extension andproduction, all from the North Central Region. Whenconsidering a proposal for funding, the Advisory Councillooks to see that in addition to meeting at least one of thefive areas of risk management, each project also addressessix criteria; proposed risk management results, resultsverification, producer demand, collaboration, creativity andapplicability. Successful projects will identify targetedresults that will help producers manage risk and thendescribe how the project will measure those results. Inaddition, applicants are encouraged to consider projects thatfocus on special-emphasis programming such as beginningor transitioning farmers, immigrant or minority farmers,women’s education and sustainable or value-addedagriculture.   Since 2001, nearly 46,000 producers have directlybenefitted from risk management education programmingin the 12-state North Central Region. Table 1 (on nextpage) shows awards by state.In 2012, 69 pre-proposals requesting $2,506,001 weresubmitted through the on-line application process. Of thisgroup, 38 were asked to submit a full-proposal. In April2012, the Advisory Council awarded $585,697 for 19projects. The project period is July 1, 2012 – June 30, 2013.Center ActivitiesThe Request for Applications (RFA) is released in earlyNovember each year with pre-proposals due on-line in mid-December. North Central Center staff members hold awebinar for anyone interested in submitting a pre-proposalduring this open time. Participants learn what makes a goodrisk management project and proposal, the criteria forproposal evaluation and how to use the on-line applicationsite. Project directors have indicated that this training isvery valuable for them as they look at potential projecttopics and then put their pre-proposal together. Together with the other regional Centers and the DigitalCenter located at the University of Minnesota, the NorthCentral Center recently co-hosted the National Women in Table 1. Awards by State                                              State    Number of  Awards    2001 - 2012Illinois 19Indiana 13Iowa 41Kansas 16Michigan 10Minnesota 25Missouri 20Nebraska 20North Dakota 16South Dakota 20Ohio 18Wisconsin 39Total 257Public Lead Institutions                         209Private/Non-Profit Institutions                48Agriculture Conference in Memphis, Tennessee, with over180 participants attending. With over 40 hours ofindividual concurrent session presentations, participantslearned about educational efforts which assist womenproducers to effectively manage financial, production,marketing, legal and human resource risks associated withtheir agribusinesses. The Centers will sponsor the 2013National Extension Risk Management EducationConference next spring.Each summer a workshop for new project directors isheld by the North Central Center, providing them with thebuilding blocks to deliver successful projects and achieveresults. Previous workshops have included topics such asrisk management education, effective communication,social media and evaluation and follow-up. The 2012Summer Workshop will be held in Milwaukee, Wisconsinin July.In addition to the responsibilities of the Center, theTrade Adjustment Assistance for Farmers (TAA) programoffers free training to producers and fishermen of certifiedagricultural commodities, with funding provided by the2009 Federal Stimulus Package. Certification ofcommodities took place during 2010 and includes thosecommodities which have been adversely affected byimport competition. Certified commodities for the NorthCentral Region include asparagus and catfish, and theCenter has also helped with shrimp. TAA staff haveidentified local producers, developed curriculum forproducer education and are assisting these producersthrough their education process. All of the participantshave now received orientation and training. Almost allhave completed Initial Business Plans with over 90 percentbeing assigned a consultant to complete their Long-TermBusiness Plans. More information on TAA can be found onthe program’s website, www.taaforfarmers.org. 2012 Funded ProjectsCongratulations to the following project directorswhose projects were selected for funding in 2012:Leigh Adcock: Women, Food and Agriculture                          Network (Iowa)Carl Duley: University of Wisconsin Cooperative                Extension-Buffalo CountyPhil Durst: Michigan State UniversityAndrew Fidler: Dairy Grazing Services (Missouri)Julie Fox: The Ohio State UniversityThomas Green: AgFlex, Inc. (Wisconsin)Peggy Hall: Ohio State University ExtensionKelly Heckaman: Purdue Extension Kosciusko CountyDarwin Miller: Hardin County Extension Council                    (Iowa State University)Jim Pierce: Lincoln University CooperativeTracey Renelt: South Dakota State UniversityChuck Schwartau: University of Minnesota ExtensionChristine Skelly: Michigan State UniversityMichelle Soll: Legal Aid of NebraskaLarry Tranel: Iowa State UniversityEdward Usset: University of MinnesotaAllan Vyhnalek: University of Nebraska-LincolnCrystal Weber: University of Missouri ExtensionJulia Woodruff: Ag Credit (Ohio)NCRME Center StaffBrad Lubben, Director and Extension Assistant Professorand Policy SpecialistDave Goeller, Assistant Director & TAA CoordinatorChristine Lockert, Grants CoordinatorCheryl Griffith, Publicity and PromotionKaren Kuhn, TAA Project Specialist References:Baquet, Alan, Ruth Hambleton and Doug Jose. Introductionto Risk Management – Understanding AgriculturalRisk. Risk Management Agency, USDA, 1997.Extension Risk Management Education. “HelpingAmerica’s Farmers and Ranchers Manage Risk.”Progress Report. January 2012.Christine Lockert, (402) 472-2039Administrative Program AssociateDept. of Agricultural EconomicsUniversity of Nebraska-Lincolnclockert2@unl.edu

University of Nebraska - Lincoln
DigitalCommons@University of Nebraska - Lincoln
Cornhusker Economics Agricultural Economics Department
2013
North Central Extension Risk Management
Education Center
Christine Lockert
University of Nebraska-Lincoln, clockert2@unl.edu
Follow this and additional works at: http://digitalcommons.unl.edu/agecon_cornhusker
This Article is brought to you for free and open access by the Agricultural Economics Department at DigitalCommons@University of Nebraska -
Lincoln. It has been accepted for inclusion in Cornhusker Economics by an authorized administrator of DigitalCommons@University of Nebraska -
Lincoln.
Lockert, Christine, "North Central Extension Risk Management Education Center" (2013). Cornhusker Economics. 639.
http://digitalcommons.unl.edu/agecon_cornhusker/639
CORNHUSKER
ECONOMICS
University of Nebraska–Lincoln Extension
May 22, 2013
Institute of Agriculture & Natural Resources
Department of Agricultural Economics
http://agecon.unl.edu/cornhuskereconomics
North Central Extension Risk Management Education Center
Market Report
Yr 
Ago
4 Wks
Ago 5/17/13
Livestock and Products,
 Weekly Average
Nebraska Slaughter Steers,
  35-65% Choice, Live Weight. . . . . . . .
Nebraska Feeder Steers, 
  Med. & Large Frame, 550-600 lb.. . . .
Nebraska Feeder Steers,
  Med. & Large Frame 750-800 lb. . . . .
Choice Boxed Beef, 
  600-750 lb. Carcass. . . . . . . . . . . . . .
Western Corn Belt Base Hog Price
  Carcass, Negotiated. . . . . . . . . . . . . .
Pork Carcass Cutout, 185 lb. Carcass,   
  51-52% Lean.. . . . . . . . . . . . . . . . . . .
Slaughter Lambs, Ch. & Pr., Heavy,
  Wooled, South Dakota, Direct. . . . . . .
National Carcass Lamb Cutout,
  FOB. . . . . . . . . . . . . . . . . . . . . . . . . .
$124.17
175.28
       *
191.45
84.63
82.06
       *
357.08
$126.11
162.72
136.66
190.51
78.11
83.26
115.00
288.29
$125.96
163.68
137.96
207.49
89.13
91.27
115.00
282.65
Crops, 
 Daily Spot Prices
Wheat, No. 1, H.W.
  Imperial, bu. . . . . . . . . . . . . . . . . . . . .
Corn, No. 2, Yellow
 Nebraska City, bu.. . . . . . . . . . . . . . . .
Soybeans, No. 1, Yellow
 Nebraska City, bu.. . . . . . . . . . . . . . . .
Grain Sorghum, No. 2, Yellow
  Dorchester, cwt. . . . . . . . . . . . . . . . . .
Oats, No. 2, Heavy
  Minneapolis, MN , bu. . . . . . . . . . . . .
6.25
6.56
13.79
10.64
3.63
6.99
6.66
14.33
11.21
4.25
6.90
6.98
15.14
12.11
3.95
Feed
Alfalfa, Large Square Bales, 
  Good to Premium, RFV 160-185
  Northeast Nebraska, ton. . . . . . . . . . .
Alfalfa, Large Rounds, Good
  Platte Valley, ton. . . . . . . . . . . . . . . . .
Grass Hay, Large Rounds, Good
  Nebraska, ton. . . . . . . . . . . . . . . . . . .
Dried Distillers Grains, 10% Moisture, 
  Nebraska Average. . . . . . . . . . . . . . .
Wet Distillers Grains, 65-70% Moisture, 
  Nebraska Average. . . . . . . . . . . . . . .
200.00
145.00
97.50
220.00
79.00
245.00
227.50
222.50
239.50
91.50
       *
227.50
       *
226.00
92.50
*No Market
Average United States net farm income from 2004 to
2011 was more than $77 billion, the most profitable period
in real dollar terms since 1972-1975 (United States
Department of Agriculture (USDA) Economic Research
Service (ERS)). Farm balance sheets are at the strongest
levels since the USDA started tracking data in 1960
(USDA-ERS), and farmland values have grown
exponentially, with U.S. average farmland values rising
more than eight percent per year in the 2004-2011 period
(USDA National Agricultural Statistics Service).
Though the economic situation looks great for U.S.
agriculture, producers are also facing some of the most
volatile and uncertain times in history. From a low of $1.87
per bushel in December 2005, the nearby corn futures
contract on the Chicago Board of Trade climbed to $7.65 in
June 2008, fell to $2.90 in December 2008 and climbed to
$7.99 ¾ in June 2011. It has since fallen to settle at $5.86
as of early June 2012 (Chicago Mercantile Exchange (CME
Group)). Energy prices that drive fuel and fertilizer costs
for producers have exhibited similar volatility. 
As illustrated, managing both input and output price
risk can be a major challenge for producers. But even
managing price risk has itself become a risk, as business
failures at Verasun Ethanol, Eastern Livestock and MF
Global have exposed farmers and ranchers to counter-party
risk. Coupling price risk management with production and
financial risk management may help address income or
revenue risk on the farm or ranch. But, federal farm
programs are also shifting away from traditional price and
income supports and toward risk management, putting more
responsibility on the shoulders of producers for managing
risk.
Producers face numerous other legal and human risks
as well. Environmental regulations, new rules that could
constrain production and marketing methods, food safety
regulations, proposed rules for agricultural labor and other
Extension is a D ivision of the Institute of Agriculture and Natural Resources at the University of Nebraska–Lincoln
cooperating with the Counties and the U.S. Departm ent of Agriculture.
University of Nebraska Extension educational program s abide with the non-discrim ination policies 
of the University of Nebraska–Lincoln and the United States Departm ent of Agriculture.
issues including tax and trade policy all affect producers.
Human risks such as labor and personnel management or
transition and estate planning also have a substantial
impact.
Clearly, risk management continues to be a critical
need for agriculture in 2013, even with the current
economic strength of the sector. The challenge for
producers is to develop and implement effective risk
management strategies to manage risk and position the
farm or ranch for future growth and success.
The Extension Risk Management Education (ERME)
program, funded by USDA’s National Institute of Food
and Agriculture provides training to help producers learn
new strategies to manage complex and growing
agricultural risks. The goal of the program is simple -- help
farmers and ranchers manage risk. ERME strives to
achieve this goal by encouraging and funding innovative
programs across the country and helping programs focus
on tangible results (ERME, 2012). Four ERME Centers
are located across the country at the University of
Delaware (Northeast), the University of Arkansas
(Southern), Washington State University (Western) and
the University of Nebraska-Lincoln (North Central).  
Since 2001, the North Central Risk Management
Education Center, hosted by the University of Nebraska-
Lincoln Agricultural Economics Department, has
addressed the volatility and uncertainty that producers in
our 12-state region face in agriculture, the evolving farm
policy environment that increasingly emphasizes risk
management and the legislative mandate to provide risk
management education to agricultural producers. The
North Central region includes Illinois, Indiana, Iowa,
Kansas, Michigan, Minnesota, Missouri, Nebraska, North
Dakota, Ohio, South Dakota and Wisconsin. During this
time, the Center has awarded 273 projects and $8.9 million
in funding to public, private and non-profit entities to carry
out producer-focused, results-based risk management edu-
cation programs. Our educational programs have resulted
in 60,967 farm and ranch participants receiving risk
management education, and more than 122,118
measurable producer actions to better manage risk on their
operations. Examples of risk management improvements
(or results) that were learned, achieved or applied by
producers from recently completed projects are:
º In Kansas, 291 landlords and producers participated in
a series of workshops to improve their land leasing
skills.
! Based on on-line survey results, the total acreage
controlled or managed by participants could be
more than 900,000 acres, indicating a very large
impact of these workshops.
! Knowledge and skill levels were affected for each
of the skills included in the workshop.  Based on
the surveys returned:
# 93 percent reported that they had evaluated one
or more of their farm leases and/or had
negotiated a change in lease terms.
# 78 percent reported that they use Excel more
than they did prior to the workshops.
# 67 percent have used KSU-Lease to determine
and negotiate an appropriate and equitable lease
for their operation. 
º In Iowa, 395 producers participated in workshops
addressing estate planning and farm succession
challenges.
! 98 percent of survey respondents have a better
understanding of the people who should be part of
their estate planning team.
! 293 participants will review their current estate
plan with their estate planning team and make
changes as necessary.
! The Ag Decision Maker website has become a
recognized source of unbiased estate planning
information, as evidenced by the 2,229 planning
questionnaires that have been downloaded and
reviewed.
º 123 farm women and men participated in risk
management education for Indiana farm women in
order to be better business partners.  
! Six months after completing the Annie’s Project,
ladies successfully implemented new risk
management tools into their farm operations, such
as making changes in insurance policies, having
better organized financial and production records
for decision making, improved communication
skills and completing farm financial statements.
! 60 percent were planning to set 2012 farm
production goals.
! 62 percent are more involved in the decision
making processes for the farm since the workshops.
! The tools provided in the workshops have helped
farm operations save from $1,000 up to $8,000.
What is Risk Management?
There are five general types of risk: financial risk,
production risk, legal risk, marketing risk and
human/personal risk. (Baquet, Hambleton, Jose, 1997)
Financial risk refers to a producer’s farm credit and the
obligation and ability of the farm to repay its debt. The
current economic uncertainty greatly affects a producer’s
financial risk.
Production risk refers to the uncertainty of the
management of crops and livestock. Weather, disease, pests
and other factors affect the quantity and quality of the
commodities produced.
Legal risk results from changing governmental policies.
Tax laws, chemical regulations, price support payments and
changes in the Farm Bill all affect the legal risk a producer
faces.
Marketing risk is the uncertainty about prices producers
receive for commodities sold and what their production
costs may be.
Human/Personal risk includes factors such as farm
transition/succession, labor relations, disability, inter-
generational issues or divorce.
Funding Decisions
North Central ERME funding decisions are made by
an Advisory Council composed of nine individuals
involved in agricultural lending, insurance, marketing,
extension and production, all from the North Central
Region. When considering a proposal for funding, the
Advisory Council looks to see that in addition to meeting
at least one of the five areas of risk management, each
project also addresses six criteria: proposed risk manage-
ment results, results verification, producer demand,
collaboration, creativity and applicability. Successful
projects will identify targeted results that will help
producers manage risk, and then describe how the project
will measure those results. In addition, applicants are
encouraged to consider projects that focus on special-
emphasis programming such as beginning or transitioning
farmers, immigrant or minority farmers, women’s
education and sustainable or value-added agriculture.   
Table 1. Awards by State
State
Number of Awards
2001 - 2013
Illinois 20
Indiana 14
Iowa 43
Kansas 17
Michigan 10
Minnesota 28
Missouri 22
Nebraska 21
North Dakota 16
South Dakota 22
Ohio 19
Wisconsin 41
Total 273
Public Lead Institutions 224
Private/Non-Profit Institutions 49
In 2013, 52 pre-proposals requesting $1,964,177 were
submitted through the on-line application process. Of this
group, 31 were asked to submit a full-proposal.  In April
2013, the Advisory Council awarded $652,124 for 16
projects. The project period is July 1, 2013 – June 30, 2014. 
Center Activities
The Request for Applications (RFA) is released in early
November each year, with pre-proposals due on-line in
mid-December. North Central Center staff members hold a
webinar for anyone interested in submitting a pre-proposal
during this open time. Participants learn what makes a good
risk management project and proposal, the criteria for
proposal evaluation and how to use the on-line application
site. Project directors have indicated that this training is
very valuable for them as they look at potential project
topics and then put their pre-proposal together. 
The Center met with stakeholder listening groups, the
North Central Extension Farm Management Committee and
our Council several times last year to identify and assess
educational needs and emerging issues. The Center builds
on the needs assessment results to implement and deliver
the competitive grants program and related programming,
as appropriate.
Together with the other regional centers and the Digital
Center located at the University of Minnesota, the North
Central Center recently co-hosted the 7  Extension Riskth
Management Education National Conference in Denver,
Colorado, with nearly 200 participants. This biennial
conference featured three keynote speakers, over 40 hours
of individual concurrent session presentations, a
networking reception, poster session and a pre-conference
seminar. The ERME Conference brings together private and
public sector educators, crop insurance agents, lenders and
other agricultural professionals, providing an opportunity
to share ongoing and emerging successful risk management
education efforts which target agricultural producers and
their families. The Centers will sponsor the 2014 National
Women in Agriculture Conference next spring in
Indianapolis, Indiana.
Each summer the North Central Center holds a
workshop for new project directors to provide them with
the building blocks to deliver successful projects and
achieve results. Previous workshops have included topics
such as risk management education, effective communi-
cation, social media and evaluation and follow-up. The
2013 Summer Workshop will be held July 9-10 in
Minneapolis, Minnesota.
In addition to the responsibilities of the Center, the
Trade Adjustment Assistance for Farmers (TAA) program
offers free training to producers and fishermen of certified
agricultural commodities, with funding provided by the
2009 Federal Stimulus Package. Certification of
commodities took place during 2010, and includes those
commodities which have been adversely affected by import
competition.  Certified commodities for the North Central 
Region include asparagus and catfish, and the Center has also helped with shrimp. TAA staff have identified local producers,
developed curriculum for producer education and are assisting these producers through their education process. All of the
participants have now received orientation and training.  Ninety percent of the eligible producers working through the North
Central Center have completed their Long-Term Business Plan and their participation in the program. Remaining eligible
producers have a few weeks to submit their plans. More information on TAA can be found on the program’s website,
www.taaforfarmers.org. 
2013 Funded Projects
Congratulations to the following project directors whose projects were selected for funding in 2013:
Marin Bozic, University of Minnesota
Arlin Brannstrom, University of Wisconsin Center for Dairy Profitability
Erin Cortus, South Dakota State University Extension
Laura Edwards, South Dakota State University Extension
Tim Eggers, Iowa State University Extension
Julie Fox, The Ohio State University
Joe Horner, University of Missouri
Steve Huntzicker, University of Wisconsin Extension
Lee Kilmer, Iowa State University
Tim Lemmons, University of Nebraska-Lincoln
Ryan Milhollin, University of Missouri
Dale Nordquist, University of Minnesota Center for Farm Financial Management
Tamara Ogle, Purdue Extension Cass County
Gary Schnitkey, University of Illinois
Mercedes Taylor-Puckett, Kansas Farmers Union
Edward Usset, University of Minnesota Center for Farm Financial Management
NCRME Center Staff
Brad Lubben, Director and Extension Assistant Professor and Policy Specialist
Dave Goeller, Assistant Director & TAA Coordinator
Christine Lockert, Grants Coordinator
Cheryl Griffith, Publicity and Promotion
Karen Kuhn, TAA Project Specialist 
www.ncrme.org
References:
Baquet, Alan, Ruth Hambleton and Doug Jose. Introduction to Risk Management – Understanding Agricultural Risk. Risk
Management Agency, USDA, 1997.
Extension Risk Management Education. “Helping America’s Farmers and Ranchers Manage Risk.”  Progress Report,  January
2012.
Christine Lockert, (402) 472-2039
Grants Coordinator
North Central Extension Risk Management Center
Department of Agricultural Economics
University of Nebraska-Lincoln
clockert2@unl.edu


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