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3. 2026 Extension Risk Management Education National Conference

Assessing Value Added for Farms and Ranches

Ruby Ward, Kynda Curtis, and Karin Allen

Summary

A common challenge faced by Extension faculty and business advisors is supporting agricultural producers in assessing the financial feasibility of new business strategies or products. In many cases, producers are motivated by the desire to increase profitability and reduce risk through diversification, often by adding an additional revenue stream. One such strategy involves incorporating value-added or processed food products into existing farming and ranching operations. A 2024 survey indicated that 55% of agricultural producers in Utah expressed interest in value-added processing. This presentation will address: (1) an overview of processing options and associated regulatory challenges; (2) methods for financially assessing strategic business changes; and (3) best practices for delivering effective educational support.

When evaluating the potential profitability and risk of a new enterprise, producers frequently struggle with where to begin. Although they may be able to collect some relevant information, they often lack the tools to understand how relatively small changes in costs, prices, or volumes can substantially affect overall profitability and risk. An Excel-based template will be used to demonstrate how to develop simple enterprise budgets and conduct basic risk assessments. Examples will illustrate a range of product types and marketing strategies. The session will also provide practical guidance on working with agricultural and food producers, with particular emphasis on strategies for Extension personnel who may not have formal training in farm management, agricultural economics, finance, or food safety, yet are expected to support producers in making informed business decisions.

Details

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