Variability and uncertainty in prices, yields, and foreign markets means that risk management plays an important role in many farm business decisions. A number of risk management tools are available, including Federally subsidized yield and revenue insurance, futures and options, contracting sales and purchases, enterprise diversification, debt-level management, credit, and off-farm employment. ERS conducts cutting-edge research on the effects of risk and risk-management tools on production practices, farm structure, and farm performance.
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