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The Perfect Storm: A Case Study Illustrating How a Series of Events Led One Farm Operator to Develop a Risk Management Plan that Includes a Lender’s Perspective

Author

Listed:
  • Barnard, Freddie L.
  • Yeager, Elizabeth

Abstract

Large capital requirements needed for many agricultural businesses to operate result in many relying on borrowed funds. Fixed repayment commitments combined with a leveraged financial condition and volatile commodity prices result in increased emphasis on managing risks. Deterioration in the financial condition of an agricultural business is used to illustrate development of a risk management plan by a farm manager and his lender. The case study approach is used to initiate discussion, generate ideas from readers, and provide an example that can be used by those who teach farm management, risk management, and/ or financial management.

Suggested Citation

  • Barnard, Freddie L. & Yeager, Elizabeth, 2013. "The Perfect Storm: A Case Study Illustrating How a Series of Events Led One Farm Operator to Develop a Risk Management Plan that Includes a Lender’s Perspective," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2013, pages 1-15, June.
    • Handle: RePEc:ags:jasfmr:161485
    DOI: 10.22004/ag.econ.161485
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    References listed on IDEAS

    as
    1. Wilson, Christine & Bernard, Freddie & Boehlje, Michael, 2007. "A Financial Analysis Program That Will PASS the Farm Manager “Interest Test”," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2007, pages 1-10.
    2. Ginder, Matthew G. & Spaulding, Aslihan D. & Winter, J. Randy & Tudor, Kerry W., 2010. "Crop Insurance Purchase Decisions: A Study of Northern Illinois Farmers," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2010, pages 1-20.
    3. Micheels, Eric & Barry, Peter, 2005. "How Midwestern Farmers Rate Risk Management Practices," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2005, pages 1-7.
    4. Wachenheim, Cheryl J. & Saxowsky, David, 2003. "Profits and Risk: Fitting an Old Framework to a New Agriculture," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2003, pages 1-10.
    5. Alexander, Corinne E. & Patrick, George F., 2010. "Large-Scale Producers' Perceptions of, and Managerial Responses to, Increased Volatility," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2010, pages 1-12.
    6. Barnard, Freddie L. & Ellinger, Paul N. & Wilson, Christine A., 2010. "Measurement Issues in Assessing Farm Profitability through Cash Tax Returns," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2010, pages 1-11.
    7. Chad E. Hart & Bruce A. Babcock, 2001. "Rankings of Risk Management Strategies Combining Crop Insurance Products and Marketing Positions," Center for Agricultural and Rural Development (CARD) Publications 01-wp267, Center for Agricultural and Rural Development (CARD) at Iowa State University.
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    Keywords

    Agricultural Finance;

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