; Managing Financial Risk in Difficult Times: RightRisk Tools to Help Get You Started | Conferences | AgRisk Library


Conference Name Managing Financial Risk in Difficult Times: RightRisk Tools to Help Get You Started

Jeffrey E. Tranel, John P. Hewlett, and Rodney L. Sharp


Farmers and ranchers face numerous financial risks. Keeping good financial records, developing accurate financial statements, and analyzing financial information can help business managers make more informed decisions and strengthen their businesses. In order to help people become better educated about maintaining and analyzing financial information, the authors developed a series of three “Getting on Track” courses.
“Better Management through Basic Ag Records” uses four scenarios to provide education about agricultural record keeping. The scenarios involve five families learn the basics of good record keeping and the benefits of their records. “Better Management through Basic Financial Statements” uses a young couple (Jack and Joanie) to explain the process of developing the four basic financial statements. Joanie’s father, a banker, serves as a valuable resource to explain the purpose, benefits, sources of information, and process of completing each statement. “Getting on Track through Basic Financial Analysis” follows Jack and Joanie as they analyze the health of their business using financial ratios. They use the results of the financial analyses to determine if the farm can generate sufficient income to hire their children as a means of funding college.
These interactive courses can be viewed on-line or via CD-ROMs. Each course provides a number of valuable resources and a glossary of terms. Further, teaching resources – slides, teaching outlines, etc. – are made available for Extension educators to conduct workshops for their clientele. The authors have successfully used the information from these three courses in a variety of educational formats.