Risk Management Toolbox for Specialty Crop Growers

Record Keeping: Essential for Risk Management

Record keeping generally does not make the crop producer's top 10 list of favorite things to do. Yet records are critical when it comes to managing risk. One of the primary management challenges is to collect, organize, and file important documents and actions. These records then become tools for reporting loss, for business decision-making, and for tax preparation. While there are many reasons to keep complete and accurate records, the purpose of this fact sheet is to clarify the essential information needed to participate in the crop disaster assistance program.

One of the primary benefits of having good records is that you can prove your crop yields. Specialty crop growers may be at an advantage when they can prove their yields with records and establish an actual production history (APH) with the Farm Service Agency (FSA). In contrast, growers with no records and no recorded APH may be disadvantaged when it comes to maximizing payment loss when participating in USDA's crop disaster program, especially if production yields are above average.

Another option to document yield is to hire a FSA contractor to measure expected crop yield and quality prior to harvest and/or after harvest. This may be a useful measurement that can be used to document your APH. For example, if you contract your crop to a wholesaler, it is not unusual for a grower to plant 10-25% more than needed as a risk management tool. But if the grower cannot sell the additional crop, the FSA crop contractor-measured yields may establish your APH rather than the amount of the crop sold.

Whether you sell your product for processing, wholesale, or retail, records are essential. So regardless of your marketing method, keep a detailed daily log for each market and each crop to accurately reflect the amount raised and sold. The sample crop production record sheet and daily market log on the reverse side is one example format to record your crop production and sales data for each crop. This data is needed to verify a crop loss or disaster. In addition, remember to record acreage that you intended to plant but were prevented from planting since this may be eligible for loss adjustment as well.

Farm record keeping need not be difficult. But maintaining the essential records will allow you to validate and verify your interest in the crops grown and marketed. Your participation in the USDA crop disaster program requires reliable and verifiable records. As a bonus, the records you keep may serve you in ways you hadn't previously considered.

Sample

Crop Production Record Sheet

Producer:_______________________________  Crop Year:______________________________

Sample

Daily Market Log

Date:_______________________________  Market:______________________________

The U.S. Department of Agriculture (USDA) prohibits discrimination in all its programs and activities on the basis of race, color, national origin, gender, religion, age, disability, political beliefs, sexual orientation, and marital or family status. (Not all prohibited bases apply to all programs.) USDA is an equal opportunity provider and employer.

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