Risk Management for Wyoming Ranches: The Supplemental Federal Agricultural Disaster Programs
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Wyoming ranchers are involved in risky enterprises and use a wide range of tools to manage risk and reduce the chances that they will suffer financial losses. Mangers choose among alternative risk management strategies on the basis of the ranch’s financial structure and the ranch manager’s preference and capacity for taking on or avoiding risk.
Currently, many alternatives exist for managing risk, including: Federal crop insurance products and supplemental federal disaster programs where available.
The 2008 Farm Bill authorized five standing disaster programs. The most pertinent to Wyoming Livestock ranchers were the Livestock Forage Disaster Program (LFP), the Livestock Indemnity Program (LIP), and the Emergency Assistance for Livestock, Honey Bees, and Farm-Raised Fish Program (ELAP).
The Agricultural Act of 2014, passed February 7, 2014, makes the Livestock Forage Disaster Program, Livestock Indemnity Payments, and Emergency Assistance of Livestock, Honey Bees, and Farm-Raised Fish permanent and provides for retroactive authority to cover eligible losses back to October 1, 2011.
This retroactive provision reinstates these programs for federal fiscal years 2012 (October 1, 2011 through September 30, 2012) and 2013 (October 1, 2012 through September 30, 2013).
A recently completed bulletin entitled Production Risk Management for Wyoming Ranches: The Supplemental Federal Agricultural Disaster Programs describes each of the disaster assistance programs in some detail, outlining losses that may be covered and associated compensation available. More importantly, example loss situations are included for Wyoming ranches to show how each program may work to provide protection against various types of losses.
Click here to view the bulletin or to download a copy to your computer.
For more information on the Supplemental Agricultural Disaster Programs contact a local Farm Service Agency Office or visit the FSA online at: http://www.fsa.usda.gov/FSA.
Title: Risk Management for Wyoming Ranches: The Supplemental Federal Agricultural Disaster Programs
Authors: James B. Johnson, Vincent H. Smith (Montana State University) and John P. Hewlett, University of Wyoming Ranch/Farm Management Extension Specialist.
