Risk Management Check-Up (Other)

Does your Farm need a Risk Management Check-Up ?

Below is a Farm Risk Management Check-up customized and designed just for you. Wouldn’t it be nice to be able to delve through in 10 minutes or less a questionnaire that assesses your ability at managing various risk factors (Crop Production, Legal, Financial, Marketing, Estate Planning and Human Resources) that are all components of running a farm business successfully. Take a moment and complete the twenty quick and easy to read questions below. After you have completed the check-up, calculate your score and read the recommendations. The recommendations provided in the “Our Advice” text box are tailored specific to you. It will point you in the right direction and who to seek help from to improve and sharpen your skills in managing certain business risk factors. Good Luck!

Directions for the Risk Management Check-Up

Answer all questions by clicking the button next to the answer that best describes you.
Press the Calculate button to total your results
Our advice will be displayed in "Our Advice" text box
Need assistance? Contact First Pioneer Farm Credit, ACA at info@firstpioneer.com or call 1800-562-2235.

Risk Management Check-Up (Other Farm Comodity)
Do you have a will and has it been updated & reviewed recently? I know it is important but just have not had a chance to do it Yes, but it has never been updated or reviewed since the original draft Yes, my will has been completed recently
I prepare an annual budget of income and expenses and track the financial performance of my farm against the budget throughout the year. I have tried but is nearly impossible to predict income and expenses 12 months in advance I base my income and expenses on prior year actual figures I prepare a budget based on historical information and expected changes in my operation for the upcoming year.
Are you involved in any trade or marketing organizations for your industry? Due to time constraints, I have not had time to join and/or attend trade meetings Yes, I pay my dues but do not regularly attend meetings I regularly attend meetings and/or have served in leadership roles (director, officer)
Do you maintain cash reserves for unexpected emergencies? No, cash flow is tight and I have not been able to set money aside I have a small rainy day fund Yes, I feel I can handle most surprises out of my own pocket
When was the last time you had the property (storage facility, farm stand, barns) and liability insurance policies reviewed for the business? Within the last 24 months Within the last 5 years I have never considered having it reviewed
My employees and I meet consistently for scheduled staff meetings to brainstorm and solve farm issues No I have never considered it Occasionally I always have regular and post season staff meetings
Evaluating the risk exposure of my crops is an essential part of my crop planning and production management UnfortunateIy, I cannot control the weather and its potential risk to my crops. My crops are generally very little affected by harsh weather conditions. Adverse weather has a significant effect on my production and quality of crops
The business entity structure for my farm operation is appropriate given tax and estate planning, as well as management and liability exposure? I suspect not but I am not really sure It has been several years since I reviewed this issue with my accountant or lawyer Yes, I have worked with a team of professionals to be sure I have the appropriate entity structure for my business
My key employees (ex. managers/supervisors) are involved in my business planning and in making important management decisions. No, I am not comfortable involving employees in the decision making process I occasionally ask for their input I continually get staff input before making management decisions
How large of a crop loss in your operation could you afford? I have built up enough cash reserves to withstand a 60% crop loss I can only withstand a crop loss of 20-30%
How often do you review your profit and loss statement? Rarely Annually On a regular basis that fits by business (weekly, seasonally, monthly)
I follow all necessary dairy industry environmental record-keeping requirements (ex. Pesticide applications, chemical storage) Not sure if I am in compliance Yes, I maintain environmental records Not needed for my farm operation
Have you ever had a staff employee meeting to go over farm safety issues? No, I have never considered it Occasionally I have a farm safety meeting annually with all of my employees
I complete performance appraisals on my employees and I review it with them on a regular (annual or semi-annual ) basis No, I try to be diligent about it but it is often neglected. Occasionally, when I get around to it Yes, I sit down with my employees to do annual or semi-annual reviews
My employees have been given a copy of our farm employee handbook and have signed an acknowledgement form indicating that they have read and understand the contents. I never realized that an employee handbook was even necessary They were given a copy but acknowledgement form was never signed and returned My employees have been provided a copy of our farm's employee handbook and they have all signed and returned the acknowledgement form
Have you thought about who is going to take over the farm? I am hoping it will be a relative I am hoping it will be an outside investor or a young farmer starting out I do not actually need a succession plan since I will be selling the farm when I retire (this is hassle free) I do have succession plan in place
Are you aware how much income you will need to support yourself in retirement years? No, and I am concerned about it Yes, and I have discovered that my current savings plan is falling short of my desired goals Yes, I am on a savings plan that will provide sufficient retirement income
Do you know the cost of producing your farm crop(s)? No, I am unsure on how to calculate it Yes, and I use it as a basis for production related decisions
Have you considered using professional marketing services to assist you in improving the promotion of your farm business? No, I have not considered it or it is not applicable to my farm type Yes, but I have not followed up on the idea yet Yes, I have tried professional firms in this area
I take advantage of locking in prices on farm supplies such as feed, fertilizer and other farm supplies. No, cannot afford to do it because cash flow is too tight Occasionally I take advantage of pre-paid supplies but often find it’s not worth the bother Yes, I always make it a habit to lock in prices with my vendors whenever possible.
Total Score:
Our Advice for You: