University of Maryland Extension

1. Risk Management Programming on the Eastern Shore of Maryland: Identifying needs and using a team approach. University of Maryland Extension

2. TEAM Jenny Rhodes –Queen Anne’s Co. Shannon Dill – Talbot County John Hall – Kent County Sudeep Mathew – Dorchester Co. Extension Educators, Agriculture & Natural Resources Wes Musser, College Park Professor & Extension Specialist, Farm Management University of Maryland Extension

3. Jenny Rhodes Shannon Dill John Hall Extension Educators, Agriculture & Natural Resources University of Maryland Extension

5. Why? • Grain prices received by U.S. farmers doubled and tripled in 2007 • Unfortunately, Delmarva farmers did not prosper in 2007 due to a widespread drought and reduced yields. • The effect of increased grain prices created a wave of increased costs to our farmers. • Crop inputs have sky rocketed with equipment, fertilizer, seed and fuel prices doubling and tripling. • Landowners heard of this new prosperity and they also wanted a part in the “profits • As a result, land rental rate increases are being proposed and disputes between landlord and farmer are increasing. • Grain prices have since decreased due to the downturn in the stock market causing many farmers to reevaluate their budgets, rental agreements, and marketing plans

6. Why? • Survey 2006 • Queen Anne’s County Farmers • Average acres owned – 302.43 • Average acres rented - 491.46 • 62% Rented • Results from Surveys

7. Who? Target audience: Bankers, Farm Loan Specialists, Farm Service Agency staff, Farmers and Landowners

8. When? December 2008 Taught Bankers and Farm Loan Specialists Send their Clients and Customers January – February 2009 & 2010 Held series of workshops to teach farmers and landowners

9. Crop Budgeting • Communication • Leasing • Crop Insurance • Grain Marketing • Excel for Farmers • RightRisk University of Maryland Extension

10. Surviving the Risk: A look at lease agreements, budgets, marketing and more! Jenny Rhodes Shannon Dill John Hall Sudeep Mathew Extension Educators, Agriculture & Natural Resources Wes Musser, Professor & Extension Specialist, Farm Management, University of Maryland Extension

11. Materials An informational workbook was put together as a resource for the attendees. The workbook included all presentations along with a new custom rate chart, soil types productivity table, examples of a farmer newsletter and résumé, copies of sample lease agreements, list of resourceful websites and a section on leasing your farm for hunting. All information was also posted on the Maryland Grain Marketing website, so information could also be downloaded for easier use. University of Maryland Extension

12. Crop Budgets University of Maryland Extension

13. Outline – Crop Budgets • What is a budget? • 5 Parts of a Budget • Budget Suggestions • Cost Components • Custom Rates • Demo how online budgets work

14. Crop Budgeting www.mdgrainmarketing.umd.edu

16. Landlord-Tenant Relationships University of Maryland Extension

17. Outline - Tenant-Landlord Communication • Types and forms of Communication • Communication Problems • Public Relations Strategy • Guidelines for Tenants • Guidelines for Landlords • Resume • Newsletter University of Maryland Extension

18. University of Maryland Extension

19. Guidelines for Tenants “Keeping the Landlord Happy” no different from an “Effective Public-Relations Strategy in any Business” University of Maryland Extension

20. Leases University of Maryland Extension

21. Outline Lease Agreements • Lease Components • Types of Leases • Calculating Land Rental Rates • Soil Productivity • Hunting • Machinery Costs • Calculating Land Rental Rates • Demo of Flexible Lease Agreement Worksheet University of Maryland Extension

23. Crop Insurance University of Maryland Extension

24. Crop Insurance Outline • Crop Insurance Today • Purpose of Crop Insurance • Level of Premiums Compared with Indemnities • Types of Coverage • Losses • Important Deadlines University of Maryland Extension

25. Crop Insurance Outline • Premium Subsidies • Farmer Loss Ratios • New Programs • ACRE • SURE • Requirements • What should you know… University of Maryland Extension

26. Grain Marketing University of Maryland Extension

27. Grain Marketing • Clubs • Meet Monthly • Meet Bi-monthly • Winning the Game • Women In Ag • Winter Meetings • RightRisk University of Maryland Extension

28. Excel for Farm Businesses University of Maryland Extension

29. Excel for Farm Businesses • Basics of Excel • Receive Memory Stick • Farm Excel Spreadsheet • Cost Recovery • Held • Local Community Colleges • Extension Offices University of Maryland Extension

30. RightRisk University of Maryland Extension

31. RightRisk • Ag Survivor • Represents farming practices in region • Chesapeake Maryland Farm • Risk Management decision • Crops • Budgets • Marketing • Crop Insurance • www.rightrisk.org University of Maryland Extension

32. Terrapin Couples Retreat: On the court and in the classroom University of Maryland Extension

33. Terrapin Couples Retreat • Friday Evening • Girls Basketball Game • Dinner • Saturday • Choice of classes • Grain Marketing (WTG) • Surviving the Risk • Quickbooks/Excel • RightRisk University of Maryland Extension

34. Results – Bankers/Loan Specialists • 75% will use Crop Budgets with their clientele • 100% will use Custom Rates • 100% will pass on information on Lease options • 33% will help clientele with decision on new Farm Bill ex. ACRE & SURE • 50% will help clientele make decision on Crop Insurance • 50% will use Grain Marketing information

35. Results – Landowners/Farmers • 75% of the attendees rated the program excellent • 81% indicated they would use crop budgets with their farming operations • 77% would change their communication with the landlord • 56% percent would change their type of leasing agreement • 92% percent would use the workbook.

36. Results – Landowners/Farmers • 90% of the attendees indicated the issue of risk management in today’s agriculture operations is very critical • 55% indicated they would change their risk management strategies • 87% used the internet for their farm operation • 33% percent were likely to use RightRisk on the internet.

37. • University of Maryland Extension

38. Other Outcomes • Farmers wrote a Résumé • Increased awareness of Grain Marketing Website • Grain Marketing Clubs- new tools • RightRisk – MidAtlantic Farm Credit • training exercise for loan personnel • Excel –attendees would use for farm operations

39. This regional Extension program addresses timely topics affecting the profitability our family farms. • Next Step: Applied for a grant to cover a larger region in Maryland. We would like to target young farmers next year. More Quickbooks training. • We would be happy to share our program with you.

40. Resources • Materials from this meeting – http://www.extension.iastate.edu/feci/Leasing/vflm.html • Online Courses –Ag Management e-School – http://www.extension.iastate.edu/ames • Workshops, meetings, conferences – http://dbs.extension.iastate.edu/calendar/ • Publications –rental survey, land value survey, etc. – http://www.extension.iastate.edu/pubs/ • Articles and spreadsheets – http://www.extension.iastate.edu/agdm/ • Private Consultation – http://www.extension.iastate.edu/ag/fsfm/fsfarmmg.html - www.rightrisk.org University of Maryland Extension

41. Contact Information jrhodes@umd.edu sdill@umd.edu jehall@umd.edu smathew@umd.edu wmusser@arec.umd.edu University of Maryland Extension