Showing posts from tagged with: agribusiness

National Farm Safety and Health Week to Focus on Implementing Safety Practices

Posted September 13, 2017 by Administrator

Farming has always been a hazardous job with many risks not seen in other industries. Because of this, President Franklin D. Roosevelt signed a proclamation in 1944 to bring more attention to the plight of the everyday farmer. The goal of this proclamation was to reduce farming injuries as their steadily increasing numbers were hindering the war effort. That proclamation is now known as National Farm Safety Week. This year, National Farm Safety Week runs from September 17 through September 23.

In spite of this increased focus, agribusinesses represent one of the most dangerous industries in the country. For example, over 400 farmers and farmhands died from work-related accidents in 2015. While these numbers are grim, the farming industry is experiencing improvements in safety and decreases in injuries. To continue this trend, the National Farm and Safety Week theme is focusing on implementing safety best practices. Below is a summary of events for the week:

  • September 18: Tractor safety
  • September 19: Farmer health and wellbeing
  • September 20: Health and safety of children
  • September 21: Confined spaces
  • September 22: Rural thoroughfare safety

Below are some highlights of each segment to help farmers improve safety and reduce risks.

Tractor Safety

  • Tractors and transportation accidents are the most common cause of death on farms. Tractors rolling over represent a significant amount of these incidents. As such, farmers should make use of roll over protective structures (ROPS).
  • Relating to farm transportation, farmers should implement safety practices to reduce run over incidents and PTO entanglements as well.
  • Farmers should also avoid risky shortcuts. The potential time saved is not worth the risk. Maintain vehicles and fix mechanical issues to reduce the temptation to make use of a dangerous bypass.

Farmer Health

Many farmers experience health issues later in life. Some are hard of hearing while others may require oxygen. However, farmers can avoid many of these health concerns by wearing personal protective equipment (PPE). This includes:

  • Respirators
  • Eye protection
  • Hearing Protection

Farmers should also look after their mental wellbeing in addition to their physical health. Isolation is a leading factor in depression so farmers should take their mental health seriously.

Health and Safety of Children

Each year, around 110 children and teenagers die from farming incidents. Causes range from machinery incidents to ATVs to drowning and more. This particular day will focus on creating areas that are safe for children to play as well as educating farmers on how to make farms safer for kids.

Confined Spaces

Farmers encounter hazardous gas and entrapment dangers when entering manure or grain pits. This particular day will focus on how to store and access grain as well as how to enter manure pits safely.

Rural Thoroughfare Safety

When farm vehicles and passenger vehicles collide, there are grievances on both sides. Instead of focusing on who is at fault, this day will concentrate on ways farmers and passengers alike can reduce the risk of an accident.

Cline Wood is dedicated to improving farm safety. As the leading provider of agribusiness insurance, we can help farmers identify and reduce risks. To learn more, contact us.

This document is not intended to be taken as advice regarding any individual situation and should not be relied upon as such. Marsh & McLennan Agency LLC shall have no obligation to update this publication and shall have no liability to you or any other party arising out of this publication or any matter contained herein. Any statements concerning actuarial, tax, accounting or legal matters are based solely on our experience as consultants and are not to be relied upon as actuarial, accounting, tax or legal advice, for which you should consult your own professional advisors. Any modeling analytics or projections are subject to inherent uncertainty and the analysis could be materially affective if any underlying assumptions, conditions, information or factors are inaccurate or incomplete or should change.

Share on Google+Share on LinkedInPin on PinterestShare on RedditShare on TumblrTweet about this on TwitterShare on Facebook

Farm Safety: Identifying Hazards and Managing Risk

Posted July 12, 2017 by Administrator

Investing in insurance is a necessary precaution for farmers. But farmers can take additional steps to protect their investment. For example, avoiding accidents can help minimize injuries and reduce claims. Farmers need to be aware of common hazards, implement safety measures, and train workers to recognize potential threats. While all farms are different, below are some of the most common risks farmers face.

  • Pesticides and herbicides are commonplace on farms. However, failure to use these chemicals with proper precaution can result in burns, respiratory distress, and poisoning.
  • Animals on a farm can inflict several types of injuries. These include crushing, trampling, biting, kicking, and more. Animals can transfer diseases to humans as well such as giardia and ringworm.
  • Any machine with unprotected moving parts can cause injuries. Examples include chain saws and tractors without roll over protection structures (ROPS).
  • Small spaces. Enclosed, tight spaces pose suffocation and poisoning risks. Silos and manure pits, for example, can trap toxic vapors.
  • Drowning is a very real risk on farms. This is especially true for young children in particular. Any body of water, natural or manmade, poses a risk.
  • While most farmers consider weather to be a hazard to their crops, it can also deal out damage to humans as well. Exposure to the elements can result in sunburns, dehydration, hypothermia, and more.

Farmers can take several steps to reduce these risks. Performing regular visual assessments of the farm can help farmers identify potential hazards. Educating all farmhands on risks and best safety practices can reduce injuries. Storing dangerous equipment in a safe location as well as performing regular maintenance on machinery can prevent injuries as well.

As the leading provider of agribusiness insurance, Cline Wood can help farmers identify risks and improve safety. To learn more about farming safety, contact Cline Wood.

This document is not intended to be taken as advice regarding any individual situation and should not be relied upon as such. Marsh & McLennan Agency LLC shall have no obligation to update this publication and shall have no liability to you or any other party arising out of this publication or any matter contained herein. Any statements concerning actuarial, tax, accounting or legal matters are based solely on our experience as consultants and are not to be relied upon as actuarial, accounting, tax or legal advice, for which you should consult your own professional advisors. Any modeling analytics or projections are subject to inherent uncertainty and the analysis could be materially affective if any underlying assumptions, conditions, information or factors are inaccurate or incomplete or should change.

Share on Google+Share on LinkedInPin on PinterestShare on RedditShare on TumblrTweet about this on TwitterShare on Facebook

Know the Risks Your Agribusiness Faces

Posted February 9, 2017 by Administrator

Agribusinesses face a variety of risks that other businesses do not. Some risks, such as events that affect pricing, are the same for all institutions. Other risks are unique to agriculture-based businesses, such as farming. If you own an agribusiness, you need to familiarize yourself with all of the risks that can affect your company. Below are some of the common risk factors farmers face.

Price Risk

Problems with pricing often occur after a farmer has already committed to production. Production is a lengthy process for agribusinesses. For example, farmers must invest in feed and equipment to produce the best possible livestock. It can take months or even years to see a return on their investment. During this period in time, global and local market pricing can shift and have a dramatic effect on farmers’ bottom line.

Production Risk

Agribusinesses face distinctive production risks compared to other industries. Some examples include harsh weather, droughts, insects, and a variety of other environmental factors. These elements are uncontrollable and sometimes unpredictable, which can hinder production output.

Institutional Risk

Changes to government policies can affect multiple industries. For farmers, the biggest risks come with changes to regulations regarding how they grow their crops and raise their livestock as this can have a significant effect on production costs. Other changes that can affect farmers are rules regarding manure disposal, conservation and land use mandates, or tax law updates.

Agribusinesses cannot afford to ignore these risks. The best way to reduce risk is to invest in the proper types and amount of insurance. To learn more about how insurance can reduce your agribusiness’ risk, contact the experts at Cline Wood.

Share on Google+Share on LinkedInPin on PinterestShare on RedditShare on TumblrTweet about this on TwitterShare on Facebook

Market Intelligence Critical to Livestock Industry

Posted September 20, 2016 by Administrator

HogsA new program has been created to expand livestock pricing information accessibility through the USDA Agricultural Marketing Service (through its USDA Market News Division.) The USDA Market News Division provides market information to producers of cattle, swine, lamb and livestock in the U.S. The new program, the Livestock Mandatory Price Reporting program, will encourage competition in the marketplace by improving price and supply data. The USDA Market News Division will improve its service by increasing transparency, breadth and depth of market reporting.

Livestock producers are not the only beneficiaries of the new program. Livestock processors, retail food outlets, restaurants, exporters and many other stakeholders will benefit from the daily market intelligence accessibility. Literally thousands of agricultural business transactions depend on having access to the LMR data.

Funding, and authority, for the program was awarded through the Livestock Mandatory Reporting Act of 1999. Reauthorization will be required by March 1, 2018. Parties involved in the reauthorization efforts include cattle, swine and lamb producers, packers and other market participants.

The first step in the reauthorization process is to conduct a baseline analysis of the livestock and meat industry during the past year. The baseline study will provide an overview of the evolving livestock and meat markets, which need to be taken into consideration in the comprehensive final study.

Changes are happening rapidly in the livestock and meat industry. Here are a couple of the changing trends in the industry.

  1. Packers have become larger, more concentrated, and more vertically integrated.
  2. The industry has made major investments to improve supply chain management.
  3. The use of LMR has expanded beyond price discovery
  4. Consumer preferences have changed, and packers are marketing a wider variety of value-added and specialty products to meet consumer demand.

With greater vertical integration and concentration in the industry, the LMR information has expanded beyond price discovery. AMS will be inviting industry representatives from National livestock and meat trade associations and organizations to participate in a series of stakeholder meetings to discuss the marketing methods, the current challenges with reporting livestock and meat markets, and the needs of the industry regarding future revisions to LMR.  The goal of these meetings is to reach consensus on what each commodity area needs changed in the next reauthorization.  AMS has tentatively scheduled the first meeting for mid-November.  More information will be shown when the schedule is finalized.

We are looking forward to the completed comprehensive LMR study and the report for Congress, which will serve as the basis to inform the next reauthorization.

Share on Google+Share on LinkedInPin on PinterestShare on RedditShare on TumblrTweet about this on TwitterShare on Facebook

Agribusiness Turns to Agri-Tourism for Growth Opportunities

Posted May 25, 2016 by Administrator

Some farmers and entrepreneurs have turned to a new form of agribusiness in order to become successful. Combining tourism and agribusiness helps to create a sustainable business model while also building stronger communities. This win-win merger, known as agri-tourism, brings healthier products to families, creates thousands of jobs, and injects millions of tourism dollars into farming communities.

In the state of Virginia, local tourism supported by agribusinesses help to create over 1,300 jobs and $25-million-dollar annual payroll in 2014. Tourists also spent over $100 million dollars in Virginia that year, bolstering local communities even further and brought local food, beauty supplies and other products to families in the area.

There are many different types of agri-tourism businesses that have proven to be sustainable for the farmer and the community. These business types include:

  • shutterstock_129868538Breweries
  • Farms that offer educational tours
  • Wineries
  • Bed and Breakfasts with farm tours or wineries
  • Restaurants with a farm to table experience
  • Eco-farming tours and educational programs
  • Charitable events and other community event programs
  • Traditional farmer’s markets with produce and other local products

Many farmers and entrepreneurs combine several of these businesses to create unique programs and are dedicated to helping the community to thrive.

At a time when many farming communities are struggling, local businesses are looking for a way to help improve the standard of living in their area. Agri-tourism and community support programs have proven to be one way that agribusinesses can help their community while also supplementing their income.

Many local tourism boards have begun to create programs that advertise and support agri-tourism. If you are interested in learning more about combining agribusiness and tourism, contact your local tourism board for more information. And if you are looking how to reduce risk for that new business, contact the experts at Cline Wood.

Share on Google+Share on LinkedInPin on PinterestShare on RedditShare on TumblrTweet about this on TwitterShare on Facebook

Agricultural Slump Leads to More Aid

Posted April 11, 2016 by Administrator

livestock imageAs farm income is expected to hit a 14-year low, more agribusiness profits are being bolstered by US subsidies. Unless the price of important crops such as corn performs better than expected, the US farming community will continue to struggle to be profitable.

Over $50 Billion in Aid

According to USDA estimates, federal aid will comprise 25% for total profit for farmers this year. Total aid will reach over $50 billion, which is higher than was predicted two years ago. The last time farmers received this high of a payout was ten years ago in 2006. And agriculture states are looking for ways to help their farmers with even more government aid as the prices for certain crops continue to falter.

Corn and Soybeans a Losing Proposition

Agribusiness income is less than half what it was even three years ago. The main culprits of the lackluster profits are the price of corn and soybeans. Despite the fact that corn and soybeans are the biggest US crops, farmers will lose money for every acre they plant this growing season due to a significant drop in prices. And the price of corn over the next few years will be a major factor in the fate of the farming industry.

Experts estimate that corn prices will hover around $3.70 a bushel for the next nine years. If corn manages to rise above this estimated average, then the government won’t have to provide as much aid to farmers between now and 2025.  If corn prices drop, to say $3.00 a bushel, then government subsidies will need to increase over the next nine years.

In the meantime, states that depend on farming are looking at alternatives, such as adding cottonseed to the list of crops that qualify for subsidies, and emergency aid to help farmers make it through the lean years.

Contact the experts at Cline Wood to learn more about the current state of agribusiness and how it affects your business.

Share on Google+Share on LinkedInPin on PinterestShare on RedditShare on TumblrTweet about this on TwitterShare on Facebook

Why You Shouldn’t Cut Crop Insurance to Save Money

Posted March 1, 2016 by Administrator

All businesses look for ways to save money, including agribusinesses. If you are looking to cut costs in 2016 you may be looking at reducing your crop insurance coverage. However, the money you save on insurance premiums may not make up for the money you lose later if you have a tough year.

Agriculture Act Not A Safety Netsidebar-ag-preferred-vendors

One reason you may be looking at cutting your crop insurance is because of the Agriculture Risk Coverage-county average (ARC-County). ARC-County was created as part of the 2014 Agriculture Act to help protect agribusinesses who had below average crop yields. Many farmers and others in the agriculture industry believe that with this safety net in place, crop insurance isn’t necessary.

That isn’t the case. ARC-County offers limited protection and figures are based on lower levels as part of the county average. Because farm yields are variable, the coverage received from ARC-County wouldn’t be enough to offset losses for most agribusinesses.

In a recent study comparing ARC-County with different types of policies and coverage levels, agribusinesses would need ARC-County and crop insurance to help offset loses. And since 2016 is expected to be a tough year for crop yields, you may want to consider keeping the crop insurance coverage you have.

There are other ways for agribusiness to reduce costs and maintain adequate coverage. Contact us today and our experts can help protect your business and your bottom line.

Share on Google+Share on LinkedInPin on PinterestShare on RedditShare on TumblrTweet about this on TwitterShare on Facebook

Agriculture Act Not A Complete Safety Net

Posted February 4, 2016 by Administrator

Agribusiness Insurance CoverageARC-County was created as part of the 2014 Agriculture Act to help protect agribusinesses who had below average crop yields. Many farmers and others in the agriculture industry believe that with this safety net in place, crop insurance isn’t necessary. That isn’t the case. ARC-County offers limited protection and figures are based on lower levels as part of the county average. Because farm yields are variable, the coverage received from ARC-County wouldn’t be enough to offset losses for most agribusinesses.

In a recent study comparing ARC-County with different types of policies and coverage levels, agribusinesses would need ARC-County and crop insurance to help offset loses. And since 2016 is expected to be a tough year for crop yields, you may want to consider keeping your existing crop insurance coverage. A quick refresher from the USDA/FSA is below:

County ARC: Payments are issued when the actual county crop revenue of a covered commodity is less than the ARC county guarantee for the covered commodity and are based on county data, not farm data. The ARC county guarantee equals 86 percent of the previous 5-year average national farm price, excluding the years with the highest and lowest price (the ARC guarantee price), times the 5-year average county yield, excluding the years with the highest and lowest yield (the ARC county guarantee yield). Both the guarantee and actual revenue are computed using base acres, not planted acres. The payment is equal to 85 percent of the base acres of the covered commodity times the difference between the county guarantee and the actual county crop revenue for the covered commodity. Payments may not exceed 10 percent of the benchmark county revenue (the ARC guarantee price times the ARC county guarantee yield).

Individual ARC: Payments are issued when the actual individual crop revenues, summed across all covered commodities on the farm, are less than ARC individual guarantees summed across those covered commodities on the farm. The farm for individual ARC purposes is the sum of the producer’s interest in all ARC farms in the State. The farm’s ARC individual guarantee equals 86 percent of the farm’s individual benchmark guarantee, which is defined as the ARC guarantee price times the 5-year average individual yield, excluding the years with the highest and lowest yields, and summing across all crops on the farm. The actual revenue is computed in a similar fashion, with both the guarantee and actual revenue computed using planted acreage on the farm. The individual ARC payment equals: (a) 65 percent of the sum of the base acres of all covered commodities on the farm, times (b) the difference between the individual guarantee revenue and the actual individual crop revenue across all covered commodities planted on the farm. Payments may not exceed 10 percent of the individual benchmark revenue.

Share on Google+Share on LinkedInPin on PinterestShare on RedditShare on TumblrTweet about this on TwitterShare on Facebook

Start 2016 With These Agribusiness Apps

Posted January 19, 2016 by Administrator

You may think that an industry like agribusiness wouldn’t have many apps available. On the contrary, there are hundreds of apps that are for agribusiness or can be used for your agribusiness. Here are five of the most useful mobile apps you can use today to make 2016 more productive.

  • Evernote: A paperless work environment is beneficial for a business that isn’t confined to an office. Evernote is an app that can keep you slide4organized and can be used on your desktop, tablet and smartphone.
  • AgWeb News: You can view the latest agribusiness news wherever and whenever you need it with the AgWeb News app.
  • Pocket: And when you are without an Internet connection, you can still access AgWeb news articles and other digital content with Pocket.
  • Virtual Farm Manager: Manage all of your agricultural tacks and keep your business organized with the Virtual Farm Manager.
  • MFA Agronomy Guide: The MFA Agronomy Guide app is a great resource for corn, small grain and other crops.
  • Ag Direct Mobile Calculator: This mobile app is a great way to compare, calculate quotes and make an informed decision on financing and leases.

These five mobile apps are a great way to get your agribusiness off on the right foot in the new year. AgWeb App Finder has over a hundred mobile apps you can use for your agribusiness. Take a look to find all of the apps you need to manage and grow your business in 2016.

Share on Google+Share on LinkedInPin on PinterestShare on RedditShare on TumblrTweet about this on TwitterShare on Facebook

Cotton Has Become a Serious Problem for Agribusiness

Posted December 28, 2015 by Administrator

The House Agriculture Committee’s General Farm Commodity and Risk Management Sub Committee has been discussing agribusiness’ issues with the cotton industry. Many feel that if something isn’t done soon many farmers will face serious losses.

Multiple Problemsshutterstock_92604382 - Copy

Cotton growers face many different problems, including:

  • Water scarcity
  • Increase in international cotton production
  • Synthetic fibers competing in same market
  • Lower cotton prices
  • Drop in cotton exports

These problems force many farmers to have to rely on crop insurance benefits. Some agribusinesses who specialize in cotton may not qualify for financing next year. When so many farms have to produce higher than average yields to cover expenses, the different market, environment and regulatory issues become too much to handle.

Members in the General Farm Commodity and Risk Management Sub Committee feel that a stabilizing policy should be created so that cotton growers would qualify for emergency funding. Otherwise acreage will continue to decrease and cotton production in the US will suffer.

Since there are so many difficulties farmers need to overcome, reversing the problem may take time and several government policies. In the meantime, cotton growers are facing a difficult present and an uncertain future if they want to plant cotton during next year’s growing season. To learn more, contact us.

Share on Google+Share on LinkedInPin on PinterestShare on RedditShare on TumblrTweet about this on TwitterShare on Facebook
Copyright © 2017 Cline Wood.