Annie Project Homepage

Risk Areas
Curriculum Examples
Promotional Materials
How to Begin
Class Checklist
Grant Writing
Contact Us

Financial Risk

Financial risk results when the farm business borrows money and creates an obligation to repay debt. Rising interest rates, the prospect of loans being called by lenders, and restricted credit availability are also aspects of financial risk.

There are six presentations in the core Annie’s Project. They are Women and Money, Basic Financial Documentation Interpreting Financial Documents, Enterprise Analysis, Farm Leasing, and the Farm Service Agency. Financial risk will be addressed with topics that fit the dominant productions systems for an Annie’s Project site. In some systems the Farm Service Agency or Farm Leasing may not be dominant components.

Women and Money

  • Understand how to gauge farm family living costs
  • Identify ways to compare on-farm and off-farm investment opportunities
  • Consider ways to balance family and farm needs
Example Handouts Example Presentation Other Vetted Resources

Basic Financial Documentats

  • Understand components of a balance sheet, or net worth statement
  • Learn how to classify assets and liabilities into current, intermediate, and long-term
Example Handouts Example Presentation

Interpretation of Financial Documents

  • Understand the terms liquidity, solvency, profitability, financial efficiency, and repayment capacity
  • Identify your most important ratios
  • Understand the desirable ranges for farm financial measures
Example Handouts Example Presentation

Enterprise Analysis

  • Assess costs of production
Example Handouts Example Presentation

Farm Leasing

  • Increase awareness of the depth of resources for farm leasing
  • Learn how to calculate a cash rental rate
Example Handouts Example Presentation

Farm Service Agency

  • Understand programs offered by the Farm Service Agency
  • Learn deadlines for program sign ups
  • Increase awareness on how to access Farm Service Agency lending opportunities
Example Handouts Example Presentation

National Ag Risk Library


Iowa State University Extension

Copyright © 2013, Iowa State
University Extension
Tim Eggers, Field Agricultural Economist
311 East Washington
Clarinda, IA 51632
(712) 542-5171
All rights reserved.
Page last updated 1/24/13.