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
Objectives
- 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
Objectives
- 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
Objectives
- 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
Objectives
- Assess costs of production
Example Handouts
Example Presentation
Farm Leasing
Objectives
- 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
Objectives
- 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
