FRM - Farm Risk Management


FRM - Farm Risk Management
Current Edition
by Dr. Gregory Hanson

New Price! : $220.00

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FRM offers in-depth approaches to focus farm/ranch management on problem solving and risk management in agriculture. FRM is a follow-up course to FFAT/PMAT that deepens the understanding of your agribusiness. FRM helps put finance, production, marketing, and risk concepts into "hard, specific practice." FRM provides core teaching material, practical on-going farm/ranch examples, creative ways to utilize risk management ideas and concepts, and a self-help philosophy promoting management growth.

We provide a set of formal planning materials for producers who want to implement a system of SMART goals and action plans addressing specific risk management concerns with finance/production. These chapters will be useful for presentation of ideas and plans for the operator, partner (including spouse) and, especially the lender.

Chapter 1: Reduce RISK with the Hanson Debt Rule

This approach to optimizing new debt-use, while managing risk, explains the rule concept, provides completed examples, and walks the producer through an analysis of a prospective debt-financed investment of land, facilities, machinery and/or livestock for your farm/ranch.

Chapter 2: Production RISK Management

Focus: Strengthen my Production Income
Basic information for successful use of farm assets and loans is the "good" health of crop and/or livestock production: specialization, modernization, expense-control, and revenue-growth. Incremental improvements in production, over time, will lead to a much stronger farm/ranch.

Chapter 3: RISK Analysis of Cash Flows

Focus: Strengthen my Farm & Family Cash Position
A farm that is always "liquid" can never be forced out of business for financial reasons. This chapter provides a "blueprint" for effective management of both sides of the cash equation: farm and family.

Chapter 4: Managing Debt and Asset RISK

Focus: Strengthen my Balance Sheet
Identify problems and weaknesses in your debt and asset structure. Leads you step-by-step through a planning process to take concrete action to improve your financial position during the next three years. Financial position is a key component to farm success!

Chapter 5: Ratios, Trends and Projections to Lower RISK

Focus: Strengthen the Savvy-7 Financial Ratios
This chapter provides research and exercises to bring-to-life a robust set of financial ratios that taken together as a group, are particularly insightful. These ratios address four key finance concepts: solvency, liquidity, profitability, efficiency.

Chapter 6: Reducing RISK with MOBILize Make-Or-Break-It Loans

Focus: Getting-Out of a Major Financial "Jam"
The MOBILize Plan presents a framework to right-size sinking farm finances. View it as a California-or-Bust plan where trade-offs and sacrifices are made to reach financial stability and success. Any producer can get in a financial jam. This plan is designed for those who find themselves in "jam" number 1 or 2.

Chapter 7: The Formula-5 Farm Record System

A straight-forward, basic record system that will likely be superior to the record-system used by 80-90% of your neighbors.

Why choose to take the FRM over other courses out there?

Unlike the basic FFAT/PMAT courses, FRM has no quizzes to complete and the course is not designed to be returned for grading. Producers make numerous thousand dollar decisions (some are $10,000+ decisions) every year. FRM is designed to make a major difference in key farm/ranch planning and decisions. FRM is uniquely practical in its approach.