Slim profit margins and limited working capital result in a particularly challenging economic environment for many grain producers to navigate. Being a new farmer can add an additional hurdle. Dr. Todd Davis, an assistant professor in the UK College of Agriculture, Food and Environment, has hosted risk management workshops since 2016 at locations across the state. The workshops feature case studies to show producers how they can use risk management tools to preserve their working capital during multiple years of low prices.

This agent promoted the educational program to grain producers in Muhlenberg County. One county producer attended the workshop in Daviess county during the winter of 2019. Prior to attending the workshop, the young producer sold all of his grain directly to the elevators at harvest time. Since the workshop, he has been able to take the marketing practices that he learned along with an interactive spreadsheet he was given at the workshop and utilize that information and tool to determine his input costs per acre. He has been able to set a marketing price at which he is comfortable selling grain. He also began to closely watch the grain markets and use forward contracting to lock in grain prices for some of his grain. The producer said “I felt like I was losing out and was not maximizing my profits.”  “Being new to grain farming, I was not aware of all the different contracts. He covered all of that and pointed me in the direction of where I want to be.”  “I achieved some of my highest prices for my grain ever by watching the markets and using forward contracting.”  Prior to the program, the producer had 75 acres. He currently has 330 acres with a potential for 30 more. This agent continues to work with the producer in all facets of production and marketing.