Agriculture in Transition: Farmers' Use of Risk Management Strategies

摘要

Recent changes in both federal agricultural programs and international211u001eagricultural markets have increased the potential economic risks faced by the 211u001enation's farmers. The Federal Agriculture Improvement and Reform Act of 1996, 211u001ecommonly known as the 1996 farm bill, encouraged farmers to make production 211u001edecisions in response to market forces. It also helped farmers who were eligible 211u001efor payments through federal commodity programs to reduce their reliance on 211u001efederal support by providing 'transition' payments, which are gradually declining 211u001eover a 7-year period. At the same time, U.S. farmers have faced increased global 211u001ecompetition, new technology, and volatile weather patterns. In light of these 211u001echanges, the 1996 farm bill required the U.S. Department of Agriculture (USDA), 211u001ein consultation with the Commodity Futures Trading Commission, to educate farmers 211u001eabout the tools available for managing risks.