Risks Strategies and Resources for Small Scale Producers

Risks, Strategies and Resources for Small Scale Producers OCES & OKSBDC Partnership

Risk Management Ø Understanding the nature of risk Ø Selecting appropriate strategies to reduce risk

Areas of Risk Management Ø Production Ø Marketing Ø Financial Ø Legal Ø Labor/Human

Production Risk q Challenge ü Affects both quantity and quality of production ü Caused by weather, pests, diseases, etc. q Mitigation Strategies ü Enterprise Diversification ü Season extension ü Insurance Ø Help producers to make a farm plan Ø Help producers to do costs and returns analysis of various mitigation strategies

Marketing Risk q Marketing Challenges q Mitigation Strategies • Difficulty to access market • Access to variety of markets/customers • Fluctuating product demand • Use of contracts • Limited infrastructure • Adding value Ø We help producers to develop a marketing plan, connect with alternative market infrastructure Ø Provide producers with the tools, techniques & resources needed to help increase sales

Financial Risk q Common challenges • Cost and availability of financing options i. e Capital and operating • Cost of input expenses • Record keeping q Managing Risk • Understand loaning requirements • Keeping and using records • Undertake finance risk assessment often Ø We help producers to prepare the loan application package Ø We offer business start 101 training workshops/field

Legal Risk q Challenges • Legal disputes • Major sources of disputes – Labor issues – Market contracts – Food safety issues q Mitigation Strategies • Farm liability and product liability insurance • Knowledge and compliance to food laws for inspection, quality and handling Ø Provide producers resources like fact sheets, referrals to experts on specific issues. Ø We assist producers to develop food safety plans to be used at the farm.

Human/Labor Risk q Mitigation Strategies q Challenges • Compensation • Worker safety insurance • Shortage of skilled labor • Offer effective training • Setting goals • Set clear goals and talk about them Ø We help producers develop farm goals. Ø Help producers develop a training plan for new workers/help. Ø We assist producers to establish farm food safety plans.

Working with Local OCES q Opportunities Ø Can meet clients at local county offices Ø Client meetings by appointment – 2 hour sessions Ø Follow up client meetings are possible q Services Ø Group workshops Ø Confidential client meetings Ø Multiple clients per day Ø Promote County services

Consultation for all ØSign up for free, confidential consulting at www. oksbdc. org ØRegister tab ØSelect OSU Extension Services as your center.

Questions James Arati Tel: 405 321 4774 Jarati@okstate. edu