New American Sustainable Agriculture Project

2006 Winter Training Courses

Some Questions for your Risk Management Check-up

General Risk Management Check-up

  • Are my goals written, reasonable, and measurable?
  • Are my goals attainable?
  • Have I shared my goals with everyone involved? Have they shared their goals with me?
  • Have I identified my risks, especially those that could keep me form attaining my goals?
  • What knowledge and management capabilities do I need to start my farm enterprise?
  • What capitol do I need to start?

Production Risk Management Check-up:

  • What are the implications of a crop loss on my ability to support my household?
  • What are the major reasons for crops loss? Can I protect against those risks through crop insurance?

Marketing Risk Management Check-up:

  • Which marketing tools are most familiar to me? How can I learn about unfamiliar marketing tools?
  • Should I shoot for the top price or price to sell? What are the consequences of each strategy?
  • Can I afford to store a crop or develop a value-added product and sell later?
  • Should I seek professional marketing services?
  • Would a marketing club or sellers cooperative meet my needs for information, expanded markets, and marketing planning
  • Does my market plan generate enough money to cover cash flow needs over the entire calendar year?
  • Have I figured out the costs of production and estimated yields to determine my breakeven price?

Financial Risk Management Check-up:

  • What are my long term and short term goals and how do they affect my financial planning?
  • What alternative sources of income are available to me?
  • What are my cask flow requirements? Do I have money to buy inputs each spring?
  • What records do I need to keep so that I can check on business finances?
  • What records do I need to keep so that I can make a loan request or use USDA services?
  • What are best financing options? Do I understand borrowing arrangements and possible changes in interest rates?
  • How do my finances compare to similar operations?

Legal Risk Management Check-up:

  • Have a compared the cost and benefits of different insurance policies (life, health, crop, liability, etc.)?
  • What contracts might be beneficial to me (contract production, land agreements, loan obligations, etc)?
  • Do I understand all of the implications of a contract before I sign?
  • When do I need to consult an attorney in regard to a contract?

Human Resources Risk Management Check-up:

  • Does everyone have a chance to contribute to the planning process?
  • Do I understand the goals of other family members and employees?
  • Do we have regularly scheduled times to review goals and performance?
  • Does everyone know what must be done to be successful?