Farming is no easy business. Prices and yields fluctuate, making it hard to plan - and sometimes even harder to succeed. The Allendale Risk Management (A.R.M.) program was designed to manage price and yield risks associated with production agriculture. And take a lot of the guesswork out of farming.
A.R.M. Protects You From:
- Adverse weather risks and high or low prices
- cover all production and price risks!
- A Drought--High Prices / Low Yields
- Overproduction --- Low Prices / Average Yields
A.R.M. Provides You With:
- A base revenue level and collateral for operating and margin loans - before the seed leaves the bag!
- Complete Risk Management Package
- Yield and Price Risk Management
- Collateralization for Operating and Margin Loans
Cautions of A.R.M. include:
- Income declines in years of little risk
- Must establish positions used in assumptions
- The less volatile the market, the less benefit.
Managing risk means taking control of prices and yields through three key areas: crop insurance, marketing and collateralization. The A.R.M. program combines elements of all three into a seamless total package which reduces risk - and provides peace of mind to you and your family.
A.R.M. uses a variety of tools to manage risk, including regulated contracts so the producer is fully protected. Similar to the old USDA farm program, A.R.M. establishes a target price, a sale price and four areas through which a producer can collect 'deficiency revenue' to bring total revenue to acceptable levels.
A.R.M. locks in a base revenue per acre - not per bushel - so profit margins are less affected by a yield loss. Allendale protects you from lower yields or a decline in revenue with crop insurance. Our marketing program protects you from volatile market swings. Thus, your revenue can exceed expectations in years when yields decline or rise, or when prices decline or rise. The result is a known base revenue - a real plus when planning for the year ahead.
The A.R.M. program lets you know your worst-case scenario by March. Before the seed is out of the bag, you'll know what kind of income you can expect for the year. That allows your bank to use the A.R.M. program as collateral on operating loans. A.R.M. is also designed to provide collateral for margin cash flow needs. Both you and your lender will rest easier knowing that you have the A.R.M. program working for you.
Reduced risk. Reduced stress. It all adds up to the peace of mind you need to concentrate on building - and maintaining - a successful operation. A.R.M. provides it all in one easy, affordable program.
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Get started today! Complete the data sheet below for your free, no obligation, revenue analysis.
For more information, call (800) 551-4626
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View an ARM Revenue Analysis chart which depicts the preliminary average revenue per acre generated by clients using the ARM program in 1999.
Click here to view the graph 
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