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Seeds of Research

The Alabama Agricultural Experiment Station’s Agricultural Enhancement & Seed Funding Program is designed to foster innovation, enhance research capabilities, and support emerging and established scholars through targeted research opportunities. And, for the first time this year, post-doctoral and graduate students are eligible for these grants. Seeds of Research is an occasional series of articles that will take a unique look at these research projects in their infancy and the scientists behind them.

Everyone agrees that farming is not a profession for the faint of heart, but recent events—high input costs, low commodity prices and weak export demand, to name a few—have caused even the most devoted producers to second-guess their livelihoods.

These cataclysmic events have led an Auburn University College of Agriculture Ph.D. student to pursue research into the risk management strategies available to support farm income and stabilize the economic well-being of U.S. agricultural producers.

“Farming is an inherently risky business,” said Bridget Yeboah Bafowaa, a student in the Department of Agricultural Economics and Rural Sociology. “All of these events lead to production and revenue shortfall, putting a significant strain on farm finances, and in some cases, forcing farmers to quit the operation entirely.”

Bafowaa, a native of Ghana, is one of the first students to receive a $5,000 grant through the Alabama Agricultural Experiment Station’s Agricultural Enhancement & Seed Funding Program.

“I am very excited and honored to receive this grant funding as it provides me with the opportunity to continue to conduct my research that contributes to understanding how farms use risk management strategies to reduce farm financial stress,” she said. “Knowing I am part of the first set of students to receive this funding makes the experience even more exciting.”

Bafowaa earned her bachelor’s degree in economics from the University of Cape Coast and her master’s degree in economics and data science from South Dakota State University. Her interest in agriculture and food policy led her to Auburn University.

“I found the applied economics program in the Department of Agricultural Economics and Rural Sociology to be a perfect fit for my research interest and my career,” she said. “I was also drawn to the collaborative research environment and, of course, the Southern weather. During my time at Auburn, I have also developed a strong interest in agricultural finance and extension.”

Bafowaa believes the continued success of the agricultural sector is paramount not only for its contribution to the economy, but for the many individuals whose livelihoods depend on it.

“Multiple risk management strategies are available to support farm income and stabilize the economic wellbeing of agricultural producers in the U.S.,” she said. “However, it is still necessary to understand how farmers use these tools to mitigate bad financial situations and reduce farm exits. This proposed study will provide an understanding of how farms under different financial conditions use risk management tools and which of the tools are effective in reducing financial stress and farm exits.”

A troubling trend, she said, is that farm bankruptcies have continued to rise since 2023. While current levels are still below those observed during the 1980s farm crisis, recent reports show increasing financial stress in the farm economy. For example, Chapter 12 bankruptcy filings increased from 216 cases in 2024 to 315 cases in 2025, according to a Market Intel report.

“Rising input costs also have placed significant downward pressure on farm incomes,” Bafowaa said. “With commodity prices remaining relatively low, higher production costs have further squeezed profit margins and reduced overall farm profitability.”

In the face of declining farm income, many producers have become increasingly reliant on borrowing to finance their operations, she added. This has contributed to rising farm debt levels. For some farms, lower incomes have made it more difficult to meet loan repayment obligations.

“While some farms are continuing to push through these challenges, others have been forced into bankruptcy or are just selling assets and moving on from farming,” she said. “Prolonged financial stress can make it difficult for some operations to remain sustainable over time, eventually leading to farm exits, as has been observed over the years.”

Bafowaa’s research focuses on several risk management tools, including crop insurance, farm safety net programs, off-farm employment and income, marketing and hedging strategies, and enterprise diversification. These tools can help farmers manage risk and improve financial resilience.

“The main goal is to identify which strategies or combinations of strategies are effective and how farmers use them to improve their financial position,” she said. “Research findings will be shared with key stakeholders including the USDA, extension professionals and farmers through presentations, peer review journal articles and extension publications.”

Bafowaa’s research is especially relevant now because too often risk management is viewed through the lens of a single program and the need to address one aspect of agricultural risk, said Adam Rabinowitz, associate professor & extension specialist in the Department of Agricultural Economics & Rural Sociology and Bafowaa’s faculty mentor for the project.

“For example, crop insurance that protects against natural disasters or safety net programs that protect against low prices,” Rabinowitz said. “This research recognizes that agriculture is more dynamic, and producers need to make joint decisions about risk management.” 

Combining risk management strategies can be viewed as developing a portfolio approach to protecting the farm, he said.

“With the current farm financial stress that U.S. agriculture is facing, in particular with row crops, it is important that producers understand how utilizing different combinations of programs can mitigate greater risk.”

Rabinowitz sees his role as a mentor to help facilitate Bafowaa’s research. 

“Through the grant development process. I encouraged Bridget to develop her own original idea,” he said. “I served as a sounding board, allowing her to express her thoughts and providing constructive feedback to continue critically thinking throughout the design and implementation of the research. 

“Bridget's research also requires restricted access to data and agreements with federal agencies. While I include Bridget in the process of securing access, it can sometimes be time consuming and can distract from the actual research. Thus, I see my role as also helping her navigate the system and reducing barriers that may interfere with research activities.”