Tools for Agriculture to Manage Energy Risks

Energy-related risk management tools and the role of energy production/use strategies in risk management for production agriculture and the food system were examined at a June 27-28 conference at the Hilton Kansas City Airport, Kansas City.  The conference was sponsored by USDA’s Risk Management Agency, USDA’s Office of Energy Policy and New Uses and Farm Foundation.  Identification of new non-insurance risk management tools related to energy production and use was another goal of the conference.

The high cost of oil and natural gas, combined with the growing public and private interest in renewable energy, is raising new risk management issues.   Farmers and ranchers, particularly limited resource farmers, have been hard hit by rapidly rising and volatile energy prices.  Prices of nitrogen fertilizer and other petroleum and/or natural gas based inputs have risen rapidly.  Some farmers are using traditional risk management tools to deal with these new sources of risk.

The program below includes links to speaker presentations.

Welcome	Eldon Gould, Administrator, USDA Risk Management Agency
Managing the Energy Risk in Agriculture	Keith Collins, Chief Economist, USDA
Economics of Energy Production in Agriculture	Vernon Eidman, University of Minnesota Paper and Presentation
U.S. Agriculture: A Major Player in the U.S. Energy Scene	David Bransby, Auburn University
A Broader Look at Risk Management	Nick Piggott, North Carolina State University
Markets and Risk Management Strategies	Kim Anderson, Oklahoma State University
Overview of Emerging Technologies	Phillip Badger, General Bioenergy Inc.
Energy Success Stories	Ethanol Plant Bill Pracht, East Kansas Agri-Energy Methane Digester Robert Foster, Vermont dairy farmer Vehicles Powered by Cellulosic Materials Wayne Keith, Alabama farmer/logger
Marketing Success Stories	Risk Management Strategies David Spears, Agriculture Solutions Inc. Ethanol Marketing for Cooperative Plants Steve Bleyl, Renewable Products Marketing Group Integrated Risk Management Program Jeff Carpenter, FCStone, LLC
Perspectives on Energy and Risk - Producer Panel	Traditional Producer Perspective Don Villwock, Indiana Farm Bureau Specialty Crops Perspective Joe Zanger, California Fruit and Vegetable Grower Small Farmer/Limited Resources Perspective Samuel Scott, North South Institute
Perspectives on Energy and Risk - Service Providers	Lender Perspective Cornelius Gallagher, Bank of America Industry Perspective Tom Medd, Cenex-Harvest States Market Perspective George Motroni, NYMEX