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?