ABSTRACT
The soybean enterprise both necessitates and contributes to the management and control of farm production and price risk. Risk management is an important element in soybean production. The major risk control strategies in production are those directed toward losses from pests and weather. In many cases, a given strategy will influence both sources of production risk. Soybeans also contribute to a farmer’s risk-management strategy through enterprise diversification. The corn-soybean rotation is a mainstay in cornbelt cash crop production. Its prominence and success are due in part to its value in risk management. Soybeans and corn have a number of favorable characteristics for diversification. US soybean growers have several tools available for managing marketing risks.
