The World Meteorological Organization, a body of scientists that monitor the weather services of 185 countries, says that weather events in Europe, Asia, and the U.S. this year are so far beyond the norm that the world needs to be informed. The meteorologists warn that unstable world climate resulting from global warming is a reality.

The U.S. had a record number of tornados in May—562—beating the previous record of 399, set in June 1992. In India, a heat wave with temperatures of 113°F (4-9° above normal) caused the deaths of at least 1,400 people. Switzerland had the hottest June in 250 years. (Taken from Center for Rural Affairs newsletter, August 2003 [contact Martin Kleinschmit, 402-254-6893; martink@cfra.org], adapted from The Independent [UK], July 2003. Also visit www.usgcrp.gov and www.pointcarbon.com.)

My area has been fairly dry since the end of June when the rains stopped, but my son Jeff has kept the tomatoes, beans, melons, etc. watered by soaker hose. Sunflowers and OP corn have had to make it on their own, but both look pretty good, considering. We will see at harvest, which is soon for my 75-day field corn.

Weather risk is part of production risk, which is just one of the risk factors for farmers. Other risks include marketing risk, financial risk, legal risk, and human resource risk.

Let’s start with production risk. What can you do? First, try to keep every drop of water that falls on your farm. Dam every ravine or gully leaving your farm. These ponds or lakes can be used to water crops and livestock, and help change the microclimate of your farm fields. Windbreaks help reduce water evaporation and can even increase yield. Mulch cropsÑhorticulture crops, especially. Mulch conserves the water you get, saves weeding labor, and furnishes tilth and fertility to your soil by attracting earthworms. Earthworm castings (manure) have 5 times more nitrogen, 7 times more phosphorus, 11 times more potash, 3 times more magnesium, and 1.5 times more calcium than the soil the worms live in. Concentrate on raising the organic matter of your farmÑit is important for fertility and water retention, and improves tilth and oxygen capacity. Organic matter has 5-6% nitrogen; bacteria and microbes make this available to the plants. Virgin soils had 4-6% organic matter; todayÕs soils have 2% or less. A block of soil 1x3 feet and 6 inches deep with 4-5% organic matter can absorb 165-195 pounds of water, or 4-6 inches of rain per hour. The same block of soil with 1.5-2% organic matter can only absorb 35-45 pounds of water, equal to 0.5-1.5 inches of rain per hour.

Marketing risk management is just like selling real estate. In real estate, it is location, location, location; on a small farm, it is marketing, marketing, marketing. A small farmer makes the most money with the least risk by selling the majority—probably all—of his produce for retail prices direct to the consumer. You eliminate marketing risk by: 1) having something to sell every month—because you have bills on a monthly basis; and 2) adding value. Selling U-pick blueberries saves you labor and lets customers peruse your other products; selling blueberry jam gives you a year-round market at a higher price. Choose your advertising outlets carefullyÑwhether word of mouth, farmersÕ markets, bulletin boards, or media outletsÑbut make sure people know you are there. You must know your cost of production, or you will not know how to price it to make a profit. Small farms should concentrate on niche markets. If it is easily mechanized and easy to grow, the Suits (corporations) will take over that market.

You must be flexible in your marketing and production; do not “marry” your crop or livestock—always be ready and able to change when Martha Stewart or Oprah or some other celebrity makes a food item hot.

Financial risk is managed best on the small farm by avoiding debt. Diversification of your crops and livestock lets you spread the financial risk of price fluctuations. When one crop or animal price drops, you still have others to turn to and sustain you. The faster you can turn your inventory, the better your chance of making a profit. Broiler chickens, for instance, take nine weeks; most vegetables take from 1-6 months.

Legal risk management is controlled by all of the above, plus purchased insurance. When you deal with the public or process manufacturer, or add on value, you open your farm to liability. TodayÕs society is a litigious society, which will sue at the drop of a hat for any cockeyed thing theyÑor their lawyerÑthink they can get rich on.

The last area of risk management is human resources. Take care of your health and your employees’ health. You cannot get work done when you are sick. Balance your farm operation between work and rest. You need rest to be creative. Go to seminars and conferences to learn and interact with fellow farmersÑand read, read, read. Give employees proper training for the work you want done. Pay attention to their ideas, and make them part of the operation. Have estate planning and life insurance.

These are not all of the answers, but they should give you food for thought. Make your own list and add to what I have written.

It is mandatory to maintain your lifestyle to make a profit from your farm—unless you get a huge inheritance—and profits make it easier to love what you do. The five agricultural risks: production, marketing, financial, legal, and human resources—are the ladder to success that you must climb, one step at a time.