| RME-DV002815 MSN125154 |
| Success for Small Beginning Dairy Farmers |
| North Central Risk Management Education Center Unrestricted Grants 2009-2010 |
Risk Management
Participants will learn to evaluate the risks in their business plans and will develop and implement strategic management plans to mitigate those risks. They will learn to evaluate their financial risk by benchmarking their operation against similar farms financial performance. This will help them pinpoint the areas of their business that need improvement. Participants will also learn to identify their own risk tolerance and use this information in their financial and marketing plans and as they develop and apply viable financial goals for their farms and families. After being introduced to the concepts of financial benchmarking and learning to prepare their farms financial statements, participants will be able to use these skills on a consistent basis after the project activities. As credit tightens and lenders put more constraints on new farm loans, beginning dairy farmers can be viewed by lenders as risky investments. However, farmers who take advantage of the educational programming this project offers can make their applications to lenders more attractive and less risky. As participants implement project tools year after year, they will continually improve their financial position and improve their decision-making skills, which in turn will lower their financial risk and improve their credit standing with lenders.
